IRS Opens Free Portal to File Information Returns

The Internal Revenue Service announced today that businesses can now file Form 1099 series information returns using a new online portal, available free from the IRS.

Known as the Information Returns Intake System (IRIS), this free electronic filing service is secure, accurate and requires no special software. Though available to any business of any size, IRIS may be especially helpful to any small business that currently sends their 1099 forms on paper to the IRS.

“The IRS is excited to offer any business, especially small companies, a great new way to electronically file their 1099s for free,” said IRS Acting Commissioner Doug O’Donnell. “This simplifies filing for those issuing 1099s and helps recipients receive information timely. The launch of IRIS can help reduce the millions of paper Forms 1099 we project will be filed in 2023 and demonstrates our commitment to finding useful and innovative ways of reducing paperwork on the business community and others issuing 1099s. This is part of the larger effort underway to make improvements and transform operations at the IRS.”

Filers can use the platform to create, upload, edit and view information and download completed copies of 1099-series forms for distribution and verification.

With IRIS, businesses can e-file both small and large volumes of 1099-series forms by either keying in the information or uploading a file with the use of a downloadable template.

Currently, IRIS accepts Forms 1099 only for tax year 2022 and later.

The IRS encourages any business, especially those that now file on paper, to switch to e-filing through the platform and share in its benefits.

These benefits include:

  • E-file security standards keep information safe and protected.
  • The portal is an accurate filing method that automatically detects filing errors and provides alerts for missing information.
  • Filers can submit automatic extensions and make corrections to information returns filed through the platform.
  • The IRS acknowledges receipt of the return in as early as 48 hours.
  • The platform keeps issuer information from year to year, and prior years filed through this platform, providing convenience to 1099 filers.
  • E-filing eliminates trips to the post office and can reduce office expenses for paper, postage and storage space.

Enrollment for the IRIS filing platform is now open. Filers should begin the enrollment process immediately.

The Filing Information Returns Electronically (FIRE) system will remain available for bulk filing Form 1099 series and the other information returns through at least the 2023 filing season.

For more information about IRIS visit www.irs.gov/iris.

Additional resources

Payroll Prep Tax Information

When the City of Scranton was declared a financially distressed municipality pursuant to the Municipalities Financial Recovery Act, Act 47 of 1987, as amended, (Act 47) it was authorized to levy a payroll preparation tax in lieu of the City’s business privilege tax and mercantile tax. On December 14, 2021, Scranton City Council adopted ordinance File of the Council No. 95 repealing the City of Scranton’s business privilege tax and mercantile tax and authorizing the levy of a payroll preparation tax to begin on January 1, 2022.

WAIVER OF INTEREST AND PENALTIES THROUGH JUNE 30, 2022
In the interest of assisting City’s businesses as they prepare their initial Payroll Preparation Tax return, on May 24, 2022, Scranton City Council approved Resolution No. 79 which provides a one-time waiver of the interest and penalties that would otherwise be due from June 1, 2022, through June 30, 2022. This, in practical terms, extends the due date from May 31, 2022, to June 30, 2022, of a business’s initial Payroll Preparation Tax return.

Read more about the Payroll Prep Tax on the City’s website.

Payroll Preparation Tax Calculator

The City of Scranton and Scranton School District have taken steps to eliminate the Business Privilege and Mercantile (BPM) taxes for 2022, in favor of a Payroll Preparation Tax (PPT).

While only select businesses are subject to the BPM taxes, the PPT will be applied more broadly to entities doing business in the City of Scranton.

By law, this transition must be revenue neutral – which means neither taxing body can generate more total revenue than what is collected under the BPM from the previous year. For some businesses this will result in a decrease in tax liability, while others will see an increase.

If fully approved, beginning in January 2022, the PPT will be imposed on a percentage of a business’s total payroll—at a rate of 0.002786775 by the City and 0.008064 by the School District. Likewise, all BPM liabilities will be eliminated.

Learn more about the details of this proposed action here.

To estimate your anticipated PPT liability, use the calculator below.*

*Please note, calculator is for estimation purposes only.