FIRE System Retirement: What Cross-Border Filers Need to Know Before the 2027 Filing Season

Summary

On August 24, 2026, the Internal Revenue Service issued a reminder (IR-2026-99) telling information return filers who currently use the FIRE (Filing Information Returns Electronically) system to prepare now for the system's retirement and its transition to the IRIS platform before the 2027 filing season. FIRE has long been the channel for e-filing information returns such as the 1099 series and W-2s, used by businesses, financial institutions, and tax preparation services. This is a change of filing channel, not a change in tax rates or rules — but filers who miss the transition window may face disruptions. For Canadian businesses, the change matters wherever US information returns are involved: filing 1099s for payments to US payees, for example, or W-2s for US employees. Affected filers should confirm how their returns are currently submitted, understand the requirements of the new platform, and watch for IRS guidance on transition steps and deadlines rather than waiting until the 2027 filing season approaches.

Sources

• Internal Revenue Service — IRS reminder: Information return e-file system transitioning to a new platform — https://www.irs.gov/newsroom/irs-reminder-information-return-e-file-system-transitioning-to-a-new-platform

Our Take

Information returns are an easy part of US compliance for cross-border businesses to overlook. Many Canadian companies rely on FIRE to file 1099s for US vendors or contractors, or to report W-2s when they employ US residents. Moving platforms means re-registering, testing submissions, and adjusting internal schedules. This kind of procedural change does not alter tax liability, but it can create unnecessary friction if mishandled. We recommend that businesses and individuals with US reporting obligations review their transition plans with a tax professional familiar with cross-border filing well ahead of the 2027 filing season. Consult a licensed CPA for guidance specific to your situation.

Disclaimer: This article is general information only and does not constitute tax advice; it should not substitute professional tax counsel. Please consult a licensed CPA for advice specific to your situation.