Get Ready: the IRS is Sunsetting its FIRE System
The IRS provides different methods for financial organizations to file information returns, such as Forms 1099-R and 5498. Currently, financial organizations that file 10 or more information returns must file those returns electronically using the Information Returns Intake System (IRIS) or the Filing Information Returns Electronically (FIRE) System. The FIRE system is also referred to as the “750 File System” as the file layout is based on a string of 750 characters defined in IRS Publication 1220, Specifications for Electronic Filing of Forms 1097, 1098, 1099, 3921, 3922, 5498, and W-2G.
In July 2025, the Internal Revenue Service (IRS) announced that it plans to retire its FIRE system in tax year 2026 (i.e., the 2027 tax filing season). The FIRE system will be replaced by IRIS, which will be the only intake system allowed for information returns for the 2027 filing season. The IRIS system requires the electronically submitted files to be formatted differently than the current FIRE system.
Ascensus has already started preparing for this change. We are actively working to ensure that the information return files we generate and submit to the IRS on our clients’ behalf will be appropriately formatted for tax year 2026.
To ensure a smooth transition, you should begin having conversations with whomever creates your IRS information return file to ensure that they are aware of this change. There are a number of resources regarding the IRIS system on the IRS website, including this page: E-file information returns with IRIS | Internal Revenue Service.
You should also begin having conversations with any other state or US possession tax authorities that you file with to determine if their electronic filing requirements are changing, as most states base their information return file layout on the IRS’ FIRE system.
If you’re an IRAdirect Fully Administered client that uses the FIRE system, we will continue to require incoming information return files to be in the FIRE system layout for tax year 2025 (i.e., the 2026 filing season). We will evaluate the need to continue to support this layout in tax year 2026 and beyond. We will also continue to evaluate changes to state and US possession filing requirements as those become available.
