If your city files 1099s electronically, this year's year-end process will look different than in previous years.
The IRS is retiring FIRE, the system most finance offices have used for decades to submit information returns. Starting January 1, 2027, IRIS is the only way to e-file 1099s, including corrections and prior-year returns. At the same time, the reporting threshold for Form 1099-NEC is rising from $600 to $2,000.
Neither change is complicated on its own. The catch is timing. To file through IRIS yourself, your city needs its own IRIS Transmitter Control Code (TCC), and the IRS says approval can take up to 45 days. If you haven't applied yet, that's the place to start.
Here's what's changing, what to do before your 1099s are due, and what Caselle customers need to know along the way.
What's changing this year
Two things change for 2026 1099s: where you file them, and who gets one.
FIRE is shutting down. The last day to file through FIRE is November 19, 2026, at 3 p.m. ET. After January 1, 2027, IRIS (the Information Returns Intake System) is the only system for e-filing 1099s, whether it's a current-year return, a prior-year return, or a correction. FIRE TCCs don’t work in IRIS, so if your city files its own returns, you’ll need a new IRIS TCC.
What counts as an information return? Information returns are forms that report payments you made to others, like vendors or employees, to the IRS. For local governments, that mostly means 1099s, W-2s, and ACA forms (1094-C and 1095-C). If your city files 10 or more information returns in a year, counting all of those forms together, you’re required to file electronically. Even a small city with a handful of employees and a few contractors will usually cross that line.
Only 1099s are moving to IRIS, though. W-2s are still filed with the Social Security Administration, and ACA forms are filed through a separate IRS system.
The 1099 threshold is going up. For payments made in 2026, the reporting threshold for Form 1099-NEC rises from $600 to $2,000. That means some vendors who received a 1099 from your city last year won't need one this year. Thresholds for Form 1099-MISC vary by payment type, so check IRS Publication 1099 for the amounts that apply to you. For payments made after 2026, the 1099-NEC threshold will be adjusted for inflation.
What isn't changing: your filing deadlines and what you're required to report. Forms 1099-NEC are still due to recipients and the IRS by January 31 (or the next business day when it falls on a weekend). The difference is the system you use to get them there.
Step 1: Apply for your IRIS TCC now
If your city files its own 1099s, you need your own IRIS TCC. Your FIRE TCC won't carry over, and your software vendor can't apply on your behalf.
Start as early as you can. The IRS says applications can take up to 45 days to process, and you can't file anything in IRIS until yours is approved. The later you apply, the less room you'll have before 1099s are due at the end of January.
A few things to know before you start:
- Choose the TCC that matches how you'll file. IRIS has two filing options, and each one needs its own TCC. The Taxpayer Portal is for typing returns in or uploading a CSV file on the IRS website. A2A (Application to Application) is for XML files created by accounting software. If you're not sure which applies to you, ask your software vendor before you apply.
- Caselle customers should choose A2A. Caselle creates your 1099 file in XML format, which is the format A2A uses.
- Plan for identity checks. Everyone listed on the application has to verify their identity with the IRS, so confirm who your responsible officials and contacts will be before you begin.
- Follow the IRS application instructions. The IRS walks through the process on its IRIS TCC application page.
Not sure if anyone in your office has applied? Check now. It's much easier to confirm early than to discover in January that no one did.
Step 2: Review vendor records and apply the new threshold
The higher threshold means fewer vendors will need a 1099 this year, which can lighten your year-end workload. Before you build your file, take some time to review your vendor records:
- Confirm each vendor's name and taxpayer identification number (TIN) match what they provided on their W-9.
- Check which vendors are flagged for 1099 reporting. Some who received one last year may fall under the new $2,000 threshold.
- Request updated W-9s from vendors whose information looks incomplete or outdated.
A clean vendor list matters more this year. IRIS checks returns more strictly than FIRE did, so fixing errors now helps your file go through the first time.
For Caselle customers: You'll set the $2,000 threshold when you convert your Accounts Payable information to Government Reporting. Adding it during that step keeps your 1099s in line with the new rules.
Step 3: Prepare and submit your 1099 file
Once your TCC is approved and your vendor records are ready, you'll create your 1099 file and submit it through IRIS. How you create the file depends on your accounting software. Either way, your city owns the submission, any corrections, and the confirmation that the IRS accepted it.
If you use Caselle, here's how it works:
- Open the Electronic W-2/1099 module in Caselle.
- Run the routine that generates your 1099 XML file for IRIS.
- Submit the file to IRIS using your city's A2A TCC.
- Check your submission status in IRIS and fix any rejections.
Whatever software you use, give yourself time before the deadline. A first year in a new system rarely goes perfectly, and a week or two of buffer before January 31 gives you room to fix a rejected file without scrambling.
Your year-end 1099 checklist
As soon as possible
- Confirm whether anyone in your office has applied for an IRIS TCC
- If not, apply for one through the IRS. Caselle customers can find step-by-step guidance in the Step 0: Before You Begin article in the Caselle knowledge base (support login required).
- If you still need to file anything through FIRE, do it before November 19 at 3 p.m. ET
- If you use Caselle, register for the Accounts Payable year-end webinars
December
- Review vendor names, TINs, and 1099 flags
- Request updated W-9s where information is missing or outdated
Early January
- Apply the $2,000 threshold to your 1099 data (in Caselle, during the Government Reporting conversion)
- Generate your 1099 file (in Caselle, from the Electronic W-2/1099 module)
- Submit your file to IRIS and confirm it was accepted
By January 31
- Furnish 1099-NEC forms to recipients and file them with the IRS
Get help with year-end
You don't have to work through your first IRIS year-end alone. If you're a Caselle customer, our year-end support page brings everything together in one place, including checklists for 1099s, W-2s, ACA reporting, and general ledger close.
Join a year-end webinar. Our support team is hosting two live Accounts Payable sessions, both starting at 10 a.m. MT:
- Accounts Payable Year-End 1099 Preparation, Thursday, Nov. 12
- Accounts Payable Year-End 1099 Checklist, Tuesday, Dec. 8
Sessions on payroll, ACA reporting, and business license renewals are on the year-end support page, too.
Prefer to hand it off? If year-end is one more thing your team doesn't have time for, Caselle Back-Office Services can help with W-2 and 1099 reporting and balancing.
The move to IRIS is a one-time adjustment. Get your TCC in place, clean up your vendor records, and next year's 1099s will feel like any other year-end.
Frequently asked questions
When does the IRS stop accepting 1099s through FIRE?
The last day to file through FIRE is November 19, 2026, at 3 p.m. ET. Starting January 1, 2027, IRIS is the only system for e-filing 1099s, including corrections and prior-year returns.
What is an information return?
A form that reports payments you made to others to the IRS. For local governments, that mostly means 1099s, W-2s, and ACA forms (1094-C and 1095-C). If you file 10 or more of these combined in a year, you’re required to file electronically.
Can I use my FIRE TCC to file in IRIS?
No. IRIS requires its own Transmitter Control Code, so cities that filed through FIRE need to apply for a new one.
Which IRIS TCC should I apply for?
It depends on how you'll file. Choose the Taxpayer Portal TCC if you'll enter returns by hand or upload a CSV file, or the A2A TCC if your accounting software creates an XML file. Caselle customers should choose A2A.
How long does it take to get an IRIS TCC?
The IRS says applications can take up to 45 days to process. Apply as early as possible so your code is ready before 1099s are due.
How do Caselle customers file 1099s through IRIS?
Caselle's Electronic W-2/1099 module creates an XML file, and your city submits it to IRIS using its own A2A TCC.
How do Caselle customers apply the $2,000 threshold?
You add it when you convert your Accounts Payable information to Government Reporting.
Which payments does the $2,000 threshold apply to?
It applies to Form 1099-NEC payments made in 2026, such as payments to contractors for services. Form 1099-MISC thresholds vary by payment type, so check IRS Publication 1099 for the amounts that apply to you.
Did the 1099 filing deadline change?
No. Forms 1099-NEC are still due to recipients and the IRS by January 31, or the next business day if it falls on a weekend.
