If you are a small business owner, IRIS (Information Returns Intake System), a free electronic filing service provided by the IRS that allows businesses to file Form 1099 returns, is expected to be especially useful for you.
Goodbye Penalties For Incorrect Information
According to the IRS, the new filing software will actually conduct basic validation of the data you submit. They claim it automatically detects missing information, and can find certain types of errors before the filing is finalized, which should help reduce penalties. Additionally, the system maintains a record of 1099s filed, and no additional software or service provider is needed for filing.
Filers can use the platform to create, upload, edit, and view information, and download completed copies of 1099 series forms for distribution. IRIS can be used to manually add a 1099 or bulk import up to 100 forms per upload utilizing a CSV template.
Downsides? Last Minute Filers Attempting To Use IRIS, May Have A Waiting Period
Take note, to use IRIS, filers must apply to use the system, and it takes about 45 days to process applications. The IRS now requires electronic filing of 10 or more information returns, so businesses filing a total of 10 or more information returns must e-file them, beginning in 2024.
More Features: IRIS Supports 1099 Corrections
In addition to e-filing for free with IRIS, businesses can also use the platform to file corrected Forms 1099 and request automatic filing extensions.
Types of 1099s You Can File With IRIS
21 different kinds of 1099 can be filed, and there is no need to file a 1096.
Forms can be completed online or uploaded using CSV files. IRIS is part of the Combined Federal/State Filing Program used by 30 states, allowing simultaneous filing of major 1099s. The IRS notes the system is secure and does not require specialized software.
With IRIS, the IRS hopes to simplify the 1099 filing process, facilitate more timely reporting, improve reporting accuracy, and reduce the cost for payers required to report.
THE IRIS SUMMARY
IRIS is a free, secure, and accurate electronic filing service provided by the IRS, which is especially designed to be useful for small businesses. It offers a user-friendly platform for filing, correcting, and managing 1099 forms. IRIS is part of the Combined Federal/State Filing Program, allowing simultaneous filing with participating states. Don’t wait till the last minute because filers wishing to use IRIS at the moment, will have to apply and wait for approval!
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