The 2026 Form 1099 season brings real change this year: the IRS is retiring its FIRE e-filing system for the new IRIS platform, the reporting threshold jumps from $600 to $2,000, and the forms gain new fields for tips and overtime. Here is a helpful walkthrough of each change and what to do before year-end.
- ✓The IRS is retiring the FIRE e-filing system, and IRIS becomes the electronic filing system for these returns beginning January 1, 2027.
- ✓The 1099-NEC and 1099-MISC reporting threshold rises from $600 to $2,000 for 2026 payments.
- ✓The 2026 forms add new fields for cash tips, Treasury Tipped Occupation Codes, and qualified overtime.
- ✓Electronic filing is required at 10 or more information returns in aggregate, which makes the FIRE-to-IRIS switch urgent.
- ✓Form 1099-NEC is due February 1, 2027, and businesses that file directly should obtain an IRIS Transmitter Control Code now.
As 2026 comes to a close, businesses should begin preparing for several important changes to Form 1099 reporting. The 2026 reporting season brings more than just changes to the forms themselves. Businesses and other information return filers also need to prepare for a major change in how their Forms 1099 are electronically filed with the IRS.
The IRS has introduced several significant changes for tax year 2026, including the retirement of the Filing Information Returns Electronically (FIRE) system, an increase in the reporting threshold for many payments from $600 to $2,000, and new reporting fields for cash tips, tipped occupations, and overtime compensation.
Here are the key changes businesses should know before year-end.
threshold (up from $600)
FIRE (2026, 3 p.m. ET)
(2027)
mandatory e-filing
01 · E-Filing Changes
What Is Changing With How Businesses File 1099s Electronically in 2026?
The IRS is retiring its long-standing FIRE e-filing system and moving all affected information-return filers to a new system called IRIS, which becomes the electronic filing system for these returns beginning January 1, 2027.
One of the most important 2026 Form 1099 changes has nothing to do with the information being reported. It involves where and how information returns are filed with the IRS.
The IRS is retiring its long-standing Filing Information Returns Electronically (FIRE) system and transitioning information return filers to the Information Returns Intake System (IRIS).
The IRS has confirmed that FIRE will no longer accept information returns after November 19, 2026, at 3:00 p.m. Eastern Time. Beginning January 1, 2027, IRIS will become the IRS’s electronic filing system for information returns that were previously supported by FIRE.
What does this mean for businesses?
If your business currently files Forms 1099 electronically through FIRE, you will need to transition to IRIS before filing your 2026 Forms 1099 in 2027.
IRIS Taxpayer Portal
The free, web-based portal allows filers to:
- E-file up to 100 information returns at a time
- Enter information manually or upload return data using a CSV file
- Download copies of forms to provide to recipients
- Maintain records of completed, filed, and distributed forms
- Save and manage issuer information
- File Forms 1099 and other eligible information returns without purchasing specialized software
Businesses using the IRIS Taxpayer Portal must obtain an IRIS Transmitter Control Code (TCC) before filing. TCC is a five-digit code that identifies the business when electronically filing information returns.
02 · The New Threshold
How Much Is the New Form 1099 Reporting Threshold for 2026?
For payments made in 2026, the reporting threshold for many payments on Forms 1099-MISC and 1099-NEC increases from $600 to $2,000.
One of the most significant changes for 2026 is the increase in the federal reporting threshold for many payments reported on Forms 1099-MISC and 1099-NEC. For payments made in 2026, the threshold increases from $600 to $2,000 for many types of reportable payments.
The $2,000 threshold generally applies to qualifying payments such as:
- Independent contractor compensation
- Rent
- Prizes and awards
- Certain other income payments
- Medical and health care payments
- Crop insurance proceeds
- Certain non-qualified deferred compensation
Form 1099-NEC Threshold Increases to $2,000
The increase is particularly important for businesses that work with independent contractors.
For 2026 payments, businesses generally must issue Form 1099-NEC when they pay at least $2,000 for qualifying services performed by a non-employee in the course of the business.
This can include:
- Independent contractors
- Consultants
- Freelancers
- Subcontractors
- Professional service providers
- Other non-employee service providers
Businesses should continue collecting Form W-9 information from applicable vendors, even when a vendor may not ultimately reach the reporting threshold.
03 · Cash Tips
Do Businesses Now Report Cash Tips on 1099 Forms?
Yes. The 2026 Forms 1099-MISC and 1099-NEC include new fields for reporting cash tips, added as part of the federal changes addressing the deduction for qualified tips.
The 2026 Forms 1099-MISC and 1099-NEC have been updated to include new fields for reporting cash tips. The new reporting fields were added as part of the federal changes addressing the deduction for qualified tips.
Businesses making reportable payments should review their accounting and payment systems to determine whether the information necessary for these fields is being captured.
04 · Occupation Codes
What Are the New Treasury Tipped Occupation Codes on 1099s?
The 2026 Forms 1099-MISC and 1099-NEC add fields for the Treasury Tipped Occupation Code (TTOC), which identifies the occupation in which the recipient earned tips.
Forms 1099-MISC and 1099-NEC also include new fields for the Treasury Tipped Occupation Code (TTOC). These codes identify the occupation in which the recipient earned tips.
Businesses making reportable payments to individuals in tipped occupations should review their processes to determine how these codes will be identified and reported.
05 · Overtime
How Is Overtime Compensation Reported on 2026 1099s?
The 2026 Forms 1099-MISC and 1099-NEC add new fields designed to identify the amount of qualifying overtime compensation included in a reported payment.
The 2026 Forms 1099-MISC and 1099-NEC also include new fields for qualified overtime compensation. Under the new reporting rules, the forms are designed to identify the amount of qualifying overtime compensation included in the payment being reported.
Businesses that make reportable payments involving qualifying overtime should review their systems and processes to ensure this information is available for year-end reporting.
06 · The E-File Rule
Who Has to File 1099s Electronically in 2026?
Any filer with 10 or more information returns in aggregate during the calendar year must file them electronically, counting all applicable form types together.
The IRS requires electronic filing when a filer has 10 or more applicable information returns in aggregate during the calendar year. The threshold is calculated by aggregating applicable information returns rather than looking at each form type separately. For example, a business with 6 Forms 1099-NEC, 3 Forms 1099-MISC, and 2 other applicable information returns would have 11 information returns and generally would be required to file electronically.
The FIRE-to-IRIS transition makes this requirement particularly important for businesses that have historically filed paper returns or have relied on FIRE.
07 · Deadlines
What Are the 2026 Form 1099 Deadlines?
Form 1099-NEC is due to recipients and the IRS by February 1, 2027. Form 1099-MISC is generally due to recipients by February 1, with IRS deadlines of March 1 on paper and March 31 electronically.
Businesses should also plan for the applicable information return deadlines.
| Form | To recipient | To IRS (paper) | To IRS (e-file) |
|---|---|---|---|
| Form 1099-NEC | February 1, 2027 | February 1, 2027 | February 1, 2027 |
| Form 1099-MISC (generally) | February 1, 2027 | March 1, 2027 | March 31, 2027 |
Source: 2026 IRS Form 1099 instructions.
Businesses should review the IRS instructions for specific deadlines applicable to the payments they are reporting.
08 · Before Year-End
What Should Businesses Do Now to Prepare?
Confirm how your 1099s will be filed, transition to IRIS if you file directly, verify your W-9s, review vendor payments against the new threshold, and update your software and processes for the new fields.
With several significant changes taking effect, businesses should begin their 2026 Form 1099 preparation before year-end.
- ✓Confirm how your 1099s will be filed: If your company files directly with the IRS, determine whether you currently use FIRE and, if so, begin transitioning to IRIS. Don’t wait until January to address IRIS. If your company files directly with the IRS, obtain your IRIS TCC and become familiar with the new filing process before the 2027 filing season. If your payroll, accounting or tax provider handles your 1099 filing, ask them to confirm that they are prepared for the FIRE retirement and IRIS transition.
- ✓Obtain or verify W-9s: Review vendor records and make sure you have accurate legal names, tax identification numbers, addresses, and federal tax classifications.
- ✓Review vendor payments: Run a year-to-date vendor payment report and identify vendors approaching the new $2,000 reporting threshold.
- ✓Review attorney payments separately: Remember that the $600 threshold continues to apply to certain payments to attorneys.
- ✓Prepare for new tip and overtime fields: If applicable to your business, make sure your systems can capture cash tips, Treasury Tipped Occupation Codes, and qualified overtime compensation.
- ✓Update your software: Confirm that your payroll, accounting, and accounts payable software has been updated for the 2026 Forms 1099.
Don’t Let the 2026 Form 1099 changes catch you by surprise. The 2026 Form 1099 reporting season brings some important changes for businesses. The IRS website has additional useful information relating to E-file returns with IRIS.
09 · How We Help
How Can People Savvy HCM Help With the 2026 1099 Changes?
People Savvy HCM captures the data these new forms require and keeps your filing current, and Bennett/Porter handles the move to IRIS, so when the question is whether your provider is ready, the answer is yes.
The checklist above ends on a smart instruction: if someone else handles your 1099 filing, ask whether they are prepared for the FIRE retirement and the IRIS transition. For People Savvy HCM clients, that box is accounted for. The platform, powered by UKG Ready, is built to capture what the 2026 forms now ask for, including cash tips, Treasury Tipped Occupation Codes, and qualified overtime, alongside clean vendor and employee records. Because payroll, HR, and reporting live in one system, the figures that land on a 1099 or a W-2 come from the same source of truth rather than a scramble of spreadsheets.
Just as important is who you reach when a question comes up. Bennett/Porter is based in Tigard, Oregon, and clients work with a named support team that follows IRS changes like this one closely, so you are not learning a new filing system under deadline on your own. When the rules move, that team is already on it, which is the reason year-end tends to feel calmer once you have People Savvy HCM behind you.
This article is intended for general informational purposes and should not be considered tax or legal advice. Businesses should consult their tax professional regarding their specific Form 1099 reporting and filing requirements.
Frequently Asked Questions
Common Questions About the 2026 Form 1099 Changes
Not Sure Your 1099 Process Is Ready for 2026?
The FIRE shutdown, the new $2,000 threshold, and the new tip and overtime fields are a lot to track at once. Book a free consultation and a Bennett/Porter team member will look at how your 1099s and payroll data are handled today, and show you how People Savvy HCM keeps the reporting accurate and the filing on time. You will work with a local team that answers the phone and will be ready well before the 2027 season.
Sources & References
- Internal Revenue Service. “IRS reminder: Information return e-file system transitioning to a new platform” (IR-2026-99). FIRE retirement dates and the move to IRIS. irs.gov
- Internal Revenue Service. “E-file Forms 1099 with IRIS.” The IRIS Taxpayer Portal and the Transmitter Control Code (TCC). irs.gov
- Internal Revenue Service. “General Instructions for Certain Information Returns (2026).” Reporting thresholds, new reporting fields, and the 10-return e-filing requirement. irs.gov
- Internal Revenue Service. “About Form 1099-NEC, Nonemployee Compensation.” irs.gov
- Internal Revenue Service. “About Form 1099-MISC, Miscellaneous Information.” irs.gov
