The IRS launched its Information Returns Intake System (IRIS) for tax year 2022. Then, starting tax year 2023, if you have 10 or more information returns, you must file them electronically. (Learn more about this in our Changes to the Electronic Filing Requirement in 2024 article.)
So how do you know if you should use IRIS or eFile360 to e-file your information returns? Let’s compare the two.
As a business owner, CPA, accounting clerk, or HR professional, we know you’re busy, so we’ll cut right to the chase:
Pros of IRIS
- Free service
- E-file any 1099 form
Cons of IRIS
- Only works with 1099 forms
- You need an Employer Identification Number (EIN), which you probably have.
- Requires an IRIS Transmitter Control Code (TCC), which you need to apply for. It can take up to 45 days for your TCC application to be processed.
eFile360 vs. IRIS
| IRIS | eFile360 | |
|---|---|---|
| Cost | Free | Starting at $4.25 per recipient |
| Forms | 1099s | 1099s, 1098s, W-2, and ACA |
| Ideal For | Business owners, government agencies, software developers, and third-party filers | Business owners, accounting clerks, CPAs, and HR professionals |
| Getting Started | Must apply for and receive a TCC, which can take up to 45 days, before e-filing | E-file right away, no strings attached |
The primary difference between choosing eFile360 and IRIS is whether you want the responsibility of e-filing tax forms or if you want to delegate that responsibility to a team of experts who have e-filed various tax forms since 2009. The IRS calls the e-filer a “responsible official,” regardless of whether they are an issuer (meaning you only e-file for your business) or a transmitter (meaning you e-file for your business and other businesses).
When to Choose eFile360 for Your E-filing Needs
If you need to e-file 1098, ACA, or W-2 forms, or you need to e-file quickly, eFile360 is your best e-filing partner. Whether you need to e-file for your business or for your clients, we provide bulk pricing and all data is saved year after year in your secure account.
What are you waiting for? Create your free eFile360 account today and test out our platform. You only pay when you submit your forms for filing.