The IRS will stop accepting 1099 filings through its FIRE system at 3 p.m. Eastern on Nov. 19, and IRIS becomes the only electronic filing portal after Jan. 1.
For an Ecommerce Paradise reader, this lands on one task: filing Form 1099-NEC for the VAs, developers, ad managers and writers you paid at least $2,000 in 2026. Most owners never touch FIRE directly. The owners who self-file, or whose bookkeeper or software vendor has not moved to IRIS, now have six days left on the old system and a long approval queue on the new one.
Below is what the IRS said, how the cutover works, what it means for a high-ticket store with a small contractor bench, and the five moves I would make before the end of the month. If you want the basics first, start with my guide on how to pay 1099 contractors.
Get every contractor payment into one set of books before January. A clean ledger turns the 1099 scramble into an export, and QuickBooks handles the bookkeeping side for a store. Set up your books with QuickBooks →
IRS Retires FIRE on Nov. 19 and Makes IRIS the Only Portal
The IRS announced the change in news release IR-2026-99 on Aug. 24, 2026. Per the IRS release, Nov. 19 at 3 p.m. ET is the “last day to file information returns through the FIRE system.” The agency said that after the November maintenance window, filers will no longer be able to submit information returns through FIRE.
The same release spells out the consequence for the 2027 filing season. In the IRS’s words, “Current FIRE users must transition to IRIS to file tax year 2026 information returns during the 2027 filing season.” Two earlier dates have already passed. Nov. 9 was the last day to change IR Applications for Transmitter Control Codes, according to the IRS, and Accounting Today reports the FIRE test system stopped taking test returns on Nov. 1.
IRIS is the replacement. The IRS page on IRIS, last reviewed Oct. 26, 2026, describes a free web portal where you can enter forms by hand or upload a CSV file and e-file up to 100 returns at a time. Larger filers and software vendors use the Application to Application route, which needs a Transmitter Control Code (TCC), an API Client ID, a schema package and passing results in the IRS testing system.
The TCC is the part that trips people. A TCC is a five-character code, and per PayrollOrg, a FIRE TCC cannot be used in IRIS. You apply for a new one. According to HRMorning, which cites IRS Publication 5903, applications are typically processed within 45 business days. HRMorning worked the example that an application filed Oct. 30 could take until about Jan. 7, 2027, roughly three weeks before the 1099-NEC deadline.
That deadline is Jan. 31 by statute. The IRS instructions for Forms 1099-MISC and 1099-NEC say that when a due date falls on a weekend, the due date is the next business day. Jan. 31, 2027 is a Sunday, so the working deadline is Monday, Feb. 1. That is my reading of the calendar and the IRS weekend rule. HRMorning also lists Feb. 1.
The IRS instructions put two jobs on that same date. You file with the IRS and you furnish the payee statement to each contractor. A late recipient copy is its own failure, which is why a filing date that slips into mid-February hurts twice. Contractors also need the form to file their own returns, so expect emails from them if yours is late.
Two more rules shape who is affected. First, the IRS says that starting with tax year 2023, anyone with 10 or more information returns must file them electronically, and that count includes Forms W-2. Second, the reporting threshold for Form 1099-NEC rose from $600 to $2,000 for payments made after Dec. 31, 2025, per the IRS contractor FAQ. Many small stores will file fewer forms this year than last.
The penalties for missing it are per return. The IRS penalty table for returns due in 2027 lists $60 per return up to 30 days late, $130 from day 31 through Aug. 1, and $340 after Aug. 1 or if never filed. I covered the other tax-side change from the IRS this week in my post on the 2027 401(k) limit.
FIRE Dates to the 1980s and IRIS Is a Portal Built for APIs
FIRE is old. Accounting Today reported on Nov. 12 that the system dates to the 1980s and relied on ASCII files batched by employer identification number. IRIS is portal-based and API-first, per the same report. The IRS release says all forms FIRE supported will be available in IRIS beginning in 2027.
John Kreger of Sovos called it “a once-in-a-generation infrastructure change for information reporting,” in comments carried by Accounting Today. He added that “the financial stakes of getting this wrong are real.” Sovos sells information-reporting software, so he has a business reason to stress the point. The penalty table above shows the stakes are real for a small payer too, just smaller in scale.
There is a counterpoint, and it matters. Accounting Today reports that most accounting firms rely on third-party providers and may not notice the change directly. The advisory firm CRI says the same thing in practical terms: if a payroll provider, software vendor or filing service submits your returns, confirm how that provider is handling the transition. In other words, for many owners the vendor absorbs the IRIS work. I found no announcement of a delay or extension in the IRS release or in the trade coverage I read, so I would not plan around one.
The 1099-NEC itself is not new for anyone who has paid contractors. My walkthrough of filing taxes as an ecommerce seller covers where these forms fit in the bigger tax picture. What is new this year is the plumbing underneath the filing and the higher threshold that decides which payees get a form.
What the FIRE Shutdown Means for Stores Paying Contractors
My read is that this story splits store owners into three groups, and only one of them has real work to do. I am not a CPA or a tax advisor, so run the specifics past yours.
The first group files through software or a contractor-payment platform that transmits on its behalf. Your job is one email asking who transmits your 2026 forms and whether they already hold an IRIS TCC. The second group hands everything to a CPA or bookkeeper. Same email, same answer needed. If you use Gusto to pay contractors, check its help center for the IRIS plan rather than assuming. The same goes for FreshBooks if that is where your invoices live.
The third group self-files. These are owners who keep their own books and e-file the 1099-NECs themselves. For this group the clock is real. Using the HRMorning estimate of 45 business days, an application filed today lands around Jan. 21, 2027 by my own count that skips federal holidays. That leaves about a week and a half before Feb. 1. A single rejected application or typo could cost you the window, and a law-firm analysis on JD Supra says IRIS has enhanced validation rules, so even small errors can bounce a file.
Four questions will sort out which group you are in. Who transmits my 2026 forms, me or a provider? If it is a provider, do they hold an IRIS TCC today or are they waiting on approval? If it is me, do I file fewer than 10 information returns in total or 10 and up? And who is collecting the W-9s, since the form is only as good as the name and taxpayer ID on it? Four answers, one afternoon. Do not let it drift into December, when everyone else is asking the same questions and support queues stretch.
Here is rough math, and it is hypothetical. Say your store paid six US-based contractors at least $2,000 each in 2026: a developer, an ad manager, a copywriter, two designers and a bookkeeper. If you miss the deadline and file after Aug. 1, the IRS penalty table puts that at 6 times $340, or $2,040. That is not ruinous, but it is a bad way to spend two grand.
The higher threshold helps. Last year a $1,200 VA invoice total triggered a form. For 2026 it does not, per the IRS. A store with four or five qualifying contractors may land under the 10-return line that triggers mandatory e-filing, though that count covers every type of information return you file, not just 1099-NECs. Ask your CPA to count them before you decide how to file.
Overseas help changes the picture again. Payments to contractors outside the US generally are not reported on a 1099-NEC, and those contractors usually provide a different form instead. Confirm that with your CPA. If you hire VAs through OnlineJobs.ph, keep the invoices and payment records either way.
If you pay those VAs through Wise, the transfer history becomes your paper trail. My post on hiring and onboarding a VA covers the setup.
The cost side of contractor tools is in my breakdown of Square Payroll pricing.
The decision points are simple once you lay them out. Under 10 total returns and a provider that already handles IRIS, you are done after one email. Under 10 returns and nobody to transmit for you, talk to your CPA about the filing route that fits a small count, because the e-file mandate is what pushes people into IRIS in the first place. Ten or more returns and no provider, you are the person who needs a TCC, and you should apply today. I would not guess at any of these, and neither should you.
The deeper lesson is about systems. This is the second compliance cutoff for store owners this month, after the FCC SMS opt-out changes starting Nov. 25. Neither one is dramatic. Both punish owners who run the back office from memory. When I wrote about when a high-ticket store needs a real system, this was the kind of problem I had in mind.
Owners who would rather spend November on supplier relationships and Google Shopping than on IRS portals have another option. My turnkey done-for-you service builds the store and the operating setup around it, so the admin work does not land on you.
Tax deadlines should not eat the weeks you need for sales. Want my team to build and run your high-ticket store for you? See the turnkey done-for-you service →
Your 1099 Checklist Before the Feb. 1 Filing Deadline
Five actions, in order. Most take under an hour.
- Build your 2026 payee list this week. Pull every payment to a US-based contractor from your books, total it by person, and flag anyone at $2,000 or more. My guide to deducting ecommerce business expenses shows how to keep contractor costs categorized so this pull is quick.
- Email your CPA, bookkeeper or software vendor today. Ask who transmits your 2026 1099-NECs, whether they have an IRIS TCC, and the date they plan to file. Get the answer in writing.
- Collect a signed W-9 from every US contractor who does not have one on file. Do it before the next payment goes out. The steps are in my 1099 contractor guide.
- If you plan to self-file, apply for your IRIS TCC through the IRS page now, not in January. Then test a small CSV upload in the Taxpayer Portal as soon as the code arrives. Compare a filing tool in my roundup of tax software for self-employed filers if you would rather hand the transmission off.
- Move contractor payments into one business account so next year’s list is one export. A dedicated account such as Mercury keeps those payments away from personal spending, and my Mercury application walkthrough covers the signup. Put Monday, Feb. 1, 2027 on your calendar and set a reminder for Jan. 15.
If you are still planning your store and have no contractors yet, none of this applies today. Plan for it anyway, because the first VA you hire starts the clock.
Frequently Asked Questions
Do I need to do anything on Nov. 19 if I use accounting software?
Probably not directly. Your software or provider transmits the forms. Ask them in writing whether they hold an IRIS TCC and when they will file, and use my comparison of accounting software if you are choosing a tool.
What is IRIS?
IRIS is the IRS Information Returns Intake System. Per the IRS, its free Taxpayer Portal lets you e-file up to 100 returns at a time by manual entry or CSV upload.
How long does a Transmitter Control Code take?
According to HRMorning, citing IRS Publication 5903, applications are typically processed within 45 business days. The IRS page on IRIS does not state a timeframe.
Do I send a 1099-NEC to a VA who lives overseas?
Payments to non-US contractors generally are not reported on a 1099-NEC, so confirm with your CPA. My post on hiring a VA covers the hiring side. 1-on-1 coaching with me is an option if you want help structuring your team.
What does a late 1099-NEC cost?
The IRS table for returns due in 2027 lists $60 per return up to 30 days late, $130 from day 31 through Aug. 1, and $340 after Aug. 1 or if never filed.
Does this affect me if I have not launched a store yet?
Not yet. The obligation starts when you pay contractors $2,000 or more in a year. Start with what high-ticket dropshipping is. Then grab the free high-ticket niches list.
Want to work through the back-office side of your store with other owners and me? Start the 7-day free trial, then it is a paid membership. Join the Skool community →
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Trevor Fenner is an ecommerce entrepreneur and world traveler from Seattle, Washington, and the founder of Ecommerce Paradise, a platform focused on helping entrepreneurs build and scale profitable high-ticket ecommerce and dropshipping businesses. With over a decade of hands-on experience, Trevor specializes in high-ticket dropshipping strategy, niche and product selection, supplier recruiting and onboarding, Google & Bing Shopping ads, ecommerce SEO, and systems-driven automation and scaling. Through Ecommerce Paradise, he provides free education via in-depth guides like How to Start High-Ticket Dropshipping, advanced training through the High-Ticket Dropshipping Masterclass, and fully done-for-you turnkey ecommerce services for entrepreneurs who want a faster, more hands-off path to growth. Trevor is known for emphasizing sustainable, real-world ecommerce models over hype-driven tactics, helping store owners build scalable, sellable, and location-independent brands.
He maintains homes in Seattle and Bali, spends most of the year overseas, and usually returns to Seattle for about a month each summer.
