IRIS overview

What is the IRIS filing system?

The Information Returns Intake System (IRIS) is the IRS's new platform for submitting 1099 information returns previously reported through their FIRE portal. The IRIS system requires XML formatted files that differ from the fixed length format specified in Publication 1220. Sovos will support transmitting records through IRIS for tax year 2025 and forward.

What are the benefits of using IRIS?

• Efficiency: Faster processing and immediate submission confirmation.

• Accuracy: Built-in validation to catch errors before submission.

• Security: Enhanced security protocols protect sensitive data.

• Convenience: Accessible online with support for bulk uploads and manual entries.

• Real-time feedback: Quick IRS response files and status updates.

Key changes in IRIS

What are the key changes in the IRIS XML format?

• Data is organized in XML tags according to the specific definitions.

• All fields must be validated against type, length, and format requirements. For example, date formats must be YYYY-MM-DD.

• Element and attribute names are case-sensitive and must match the schema.

• Common elements include unique identifiers for each record, payer, recipient, and control totals.

What else about IRIS is new?

• Name formatting

• New filing statuses

• IRS response files

Read the following sections for more information about each of these.

Name formatting

What is new about name formatting in IRIS?

To improve data accuracy and reduce the risk of mismatches, IRIS enforces a new set of rules and requires full names to be split into their component parts (first, middle, last, suffix). This affects both payer and recipient names and is especially important for entities with compound surnames, prefixes, or suffixes.

How will IRIS split names?

• Individuals: Names are split into first name, middle name/initial, last name, and suffix (for example, Jr., Sr., III).

• Businesses: Business names are entered as a single field — no splitting required.

The XML schema provides separate elements for each part of the name. Sovos' Tax Information Reporting software will be updated with new fields for each component and logic on import to split any individual's name, but filers should manually verify the correct mapping, especially for hyphenated or multi-word surnames.

What should I do if a name does not fit the standard format?

The current IRS guidance is to refer to the Publication 1220 for any name and name control format requirements. The name control examples and formatting can be found starting on page 155.

How will I need to change my import files?

Depending on your system and current import file, you may need to update the fields to separate the first, middle, and last name for individuals.

Tip:

Read the article on name formatting for more information and examples of how to format names in import files.

New filing statuses

What are the new filing statuses in IRIS?

The IRIS system introduces more granular filing statuses to track the progress of each record. The following statuses provide real-time feedback and help filers identify and address issues promptly:

Received

The IRS has received your submission, but it has not yet been processed.

Processing

Your file or record is being validated and checked for errors.

Accepted

The submission passed all validations and has been officially accepted by the IRS.

Accepted with Errors

The submission was accepted, but some records have minor issues that require attention.

Rejected

The submission failed validation due to errors or incorrect data formatting.

Partially Accepted

Some records in the submission were accepted, while others were rejected.

Duplicate

The submission or specific records match previously filed data.

Corrected

The corrected submission passed all validations and has been officially accepted by the IRS.

How should I respond to each filing status?

Accepted

No action needed, but retain the confirmation for your records.

Accepted with Errors

Review the error details and, if required, submit corrections.

Rejected or Partially Accepted

Examine the IRS response file for specific errors, correct them, and resubmit the affected records in a replacement file.

Duplicate

Verify if a submission was made in error. If not, contact the IRS for clarification.

Corrected

Keep documentation of both the original and corrected filings.

IRS response files

What is an IRS response file?

An IRS response file is a machine-readable document, typically an XML or PDF file, sent after your submission has been processed. It contains filing status results for each record, along with error codes and descriptions if applicable.

How do I retrieve my IRS response file?

After submission, Sovos will retrieve the response file and upload it to your account. After logging in, you can review the status and any errors.

What should I do if my submission is rejected?

• If a file is rejected before receiving a Receipt ID from the IRS, the records will need to be resubmitted as originals. Fix the errors and resend the file.

• If a file is rejected after receiving a Receipt ID from the IRS, the records will need to be resubmitted in a replacement file. These replacements should be submitted within 60 days of the original submission date.

  • When an acceptable replacement transmission is received within 60 days, the file will be treated as filed on the original transmission received date.

  • If an acceptable replacement transmission is received after 60 days, the file will be treated as filed on the date the replacement transmission is received.

Additional resources