The IRS Is Retiring FIRE. Are You Ready?
Tax year 2025 was the last season filing through FIRE. After December 31, 2026, IRIS becomes the only option for information reporting. Organizations that wait will face compliance risk, missed deadlines, and costly rework.
The IRS transition from FIRE to IRIS isn’t a simple format change. It’s a fundamental disruption to information reporting that breaks decades of established processes. Organizations that wait will face compliance risk, missed deadlines, and costly rework.
Trusted by Organizations Filing at Scale
- 90 million forms processed through IRIS for Tax Year 2025
- IRIS‑ready since 2021
Trusted by the World’s Best Companies Including Half the Fortune 500
Talk to an information reporting expert
The Problem: FIRE Is Ending and IRIS Changes Everything
The IRS is permanently retiring the Filing Information Returns Electronically (FIRE) system. Beginning with tax year 2026, all electronic information returns -Forms 1099, 1098, 1042‑S, and 5498 – must be filed through IRIS.
This transition creates immediate challenges:
- A firm, non‑negotiable deadline: No extensions. No fallback.
- New technical requirements: XML schemas, API‑based transmission, and real‑time validations that never existed in FIRE.
- Dual‑format complexity: Many states will still require FIRE formats while the IRS mandates IRIS.
- Increased data exposure: IRIS validates data in real time, surfacing errors before submission.
- Limited internal capacity: Rebuilding internally can take 12–22 months and adds long‑term technical debt.
The Solution: Proven IRIS Compliance - Without Rebuilding Everything
Sovos eliminates the complexity and risk of the FIRE‑to‑IRIS transition with a platform built for enterprise‑scale reporting.
What Sovos Delivers
IRIS ‑ proven platform
Already processing millions of forms in live IRS environments.
Application‑to‑-application filing
No manual uploads, no portal logins, no workflow disruption.
Dual federal and state support
File through IRIS and maintain state FIRE formats on a single platform.
Real‑time validation and error handling
Catch data issues immediately-before filings are rejected.
Regulatory burden absorbed for you
Sovos monitors IRS changes and deploys updates automatically.
Why Organizations Choose Sovos for IRIS
Lower Long-Term Cost
Built Before the Mandate
Sovos has been IRIS‑ready since 2021, with years of real‑world filing experience.
Faster Time to Compliance
Implementation in weeks versus 12–22 months for internal builds.
Lower Long-Term Cost
Predictable annual pricing-without ongoing development, maintenance, or staffing costs.
Confidence Through Change
As IRIS evolves, Sovos ensures you stay compliant without owning
regulatory risk.
Build or Buy? The Decision Is Urgent
Organizations attempting to rebuild internally face:
- Months of development and testing
- Scarce technical expertise
- Ongoing maintenance and compliance risk
- High total cost of ownership
- Exposure if timelines slip
Sovos turns a high‑stakes regulatory mandate into a controlled, predictable transition—without disrupting your existing operations.
Who This Is For
Organizations attempting to rebuild internally face:
- File 200+ information returns
- Use homegrown or manual 1099 processes
- Rely on core operating systems or financial institutions
- Have in‑house IT teams already at capacity
- Need certainty ahead of the 2026 deadline
What you’ll get in a 30-minute consultation
- Footprint review (states/jurisdictions + entities)
- Certificate and audit-readiness quick assessment
- AP/use tax exposure discussion
- Integration fit + recommended next steps
Frequently Asked Questions
How Is Filing with IRIS Different from Filing Through FIRE?
Acceptance is no longer based on file structure alone. Filing success depends on system identity, validation rigor, and transmitter approval.
Why Isn’t an IRIS-Formatted File Alone Enough for Filing?
IRIS introduces significantly stricter enforcement than FIRE. Files that appear structurally valid during development or testing may still fail in production due to business rules, sequencing requirements, identity mismatches, or security controls that only surface when submissions are made by an approved transmitter in the live IRS environment. For filers, this means that relying on upstream systems without proven production certification can shift filing risk directly onto the organization.
Why Does the Transition to IRIS Matter?
After December 2026, you will no longer be able to file your federal returns as you have done in the past. Processes that worked under FIRE do not translate in IRIS.
How can Sovos help my organization with the transition?
Sovos is a trusted, IRS-approved software provider that manages IRIS filing end-to-end. Our certified systems and proven processes help organizations file accurately, scale reliably, and transition to IRIS with confidence.
Take the Next Step Before Time Runs Out
Talk to a Sovos IRIS expert to understand your risk exposure, timeline, and fastest path to compliance.
