In this week’s What’s New episode of Information Return Intelligence, Jason Dinesen provides a concise mid-January update as the 1099 filing season gets underway. With electronic filing officially open and few last-minute surprises, this episode focuses on the key system and compliance issues filers should be aware of right now.
Key topics covered:
- 1099 e-Filing is Open
- Electronic filing opened January 6.
- Both FIRE and IRIS systems are live for the season.
- IRIS Expansion: Form 1042 Now Supported
- IRIS can now accept Form 1042 (summary form) for the first time.
- In prior years, IRIS could not accommodate this form.
- 1099-DA (Digital Asset Reporting)
- If you are required to file Form 1099-DA, it must be submitted through IRIS only.
- FIRE does not accept this form.
- This typically applies only to certain brokerages and digital asset platforms.
- Important Reminder on Form 1042 (No “S”)
- Form 1042 is subject to the e-file mandate.
- It does not go through IRIS or FIRE.
- Instead, it must be e-filed through the IRS MF (Mainframe) system.
- Not all filing vendors support MF, so filers should confirm capabilities now.
- No IRS paper-filing exception has been issued yet for 2025 (as of recording), though the form is not due until March 15.
- Publication 1099 (2026 Version) Signals FIRE’s Future
- The IRS reiterates its plan to shut down the FIRE system by the end of 2026.
- FIRE is mentioned only three times in the publication—all in the context of its shutdown.
- IRIS is referenced 26 times, underscoring the IRS’s clear long-term direction.
Bottom line:
This is a relatively quiet “What’s New” period—which is good news. Filers can focus on getting forms submitted while keeping an eye on:
- Form 1042 e-filing logistics, and
- The ongoing transition away from FIRE toward IRIS.
🎧 Tune in next week for the next episode of Information Return Intelligence.
