The IRS is making a significant change in how organizations transmit 1099 returns, moving from the longstanding FIRE (Filing Information Returns Electronically) system to the new IRIS (Information Returns Intake System) platform. This transition—mandatory starting with the 2026 tax year—will especially impact PeopleSoft customers, as filings using PeopleSoft must adapt to this new approach beginning January 2027. Early preparation is key to a seamless transition for all PeopleSoft users.

What is IRIS, and Why the Change?

The legacy FIRE system relies on outdated transmission protocols, which are less efficient and secure by today’s standards. IRIS is the IRS’s modernized platform, providing enhanced security, a streamlined interface, and improved processing efficiency. For PeopleSoft customers, this means all 1099 forms must be filed through IRIS starting in 2026—FIRE will no longer be supported.

Increased Reporting Threshold

One piece of good news: the reporting threshold is increasing from $600 to $2,000 for most 1099 filings. This means you may have fewer forms to prepare for vendors receiving minor payments.

Filing Methods with IRIS for PeopleSoft

Organizations leveraging PeopleSoft will have two primary ways to file via IRIS:

IRIS Portal (Manual Entry & CSV Upload):

  • Manual Entry: Enter 1099 data directly into the secure portal.
  • CSV Upload: Upload a CSV (spreadsheet) file exported from PeopleSoft to prepopulate the forms in the portal for submission. New limit: 250 records per file (up from 100). You can submit multiple files, but no single file can exceed 250 records.
  • Corrections: Any corrections must be entered manually through the portal—bulk corrections via CSV uploads are not supported.

Application-to-Application (A2A) Transmission

  • For a more automated approach, PeopleSoft customers can take advantage of secure, bulk electronic filing directly from PeopleSoft systems to IRIS via XML format.
  • Both original filings and corrections can be submitted electronically, removing the need for manual correction processes.
  • Security Update: A2A in PeopleSoft requires use of JSON Web Keys (JWK) and an IRS-issued API Client ID for secure system-to-system communication.

Note: PeopleSoft support for A2A filing and JWK generation is available in the latest patch releases (versions 8.60.23+POC, 8.61.18, and 8.62.07). Earlier versions of PeopleTools will not support A2A and customers must use the Portal/CSV method or evaluate third-party options.

New Transmitter Control Code (TCC) Requirement

  • Your existing FIRE TCC code cannot be used with IRIS.
  • You must apply for a new IRIS TCC code through the IRS Taxpayer Portal.
  • Application details include: your EIN, business details, and at least two “responsible officials” (with their SSN/ITIN, DOB, and contact information).
  • Responsible officials must have an ID.me account to verify their identity.
  • The process can take at least 45 days—start early!

Testing and Compliance

Organizations implementing A2A with PeopleSoft are required to complete the IRIS Assurance Testing System (ATS) to ensure compliance and technical readiness prior to live submission. This ensures that your XML files and secure integration meet IRS requirements.

Helpful IRS Publications

  • Publication 5717: Guide to the IRIS Taxpayer Portal and TCC application.
  • Publication 5718: Technical specifications for A2A (XML transmission, setup instructions).
  • Publication 5719: Information on IRIS Assurance Testing System (ATS) for pre-production testing.

What Should You Do Now?

  • Review your current process and volume for 1099 filings in PeopleSoft.
  • Decide which filing method (Portal/CSV or A2A) best fits your organization’s needs and PeopleSoft
  • If planning for A2A, coordinate with your IT and PeopleSoft admin teams to plan for pending PeopleTools upgrades and new feature adoption.
  • Begin the TCC application process as soon as possible; do not delay!
  • Ensure responsible officials register and verify ID.me accounts.
  • Review IRS Publications 5717, 5718, and 5719 for further guidance.

Conclusion

The FIRE to IRIS transition introduces important process, compliance, and technical changes for PeopleSoft customers. By acting early and leveraging PeopleSoft’s evolving features, you can ensure your organization remains compliant and ready for the 2026 tax year and beyond.