IRS IRIS - Submitting 1099-NEC

This SOP outlines the process for filing Form 1099-NEC on behalf of client employers through the IRS Information Returns Intake System (IRIS). It ensures consistent, accurate, and timely submission of 1099-NEC forms in accordance with IRS requirements and Payroll Vault's role as a third-party administrator (TPA).

iSolved is updating the format file from IRS FIRE to IRS IRIS. This will be available towards year-end as FIRE is going away and IRIS will be required. 

Step 1: Navigate to Upload

1. Log into the IRIS Taxpayer Portal.
2. From the Dashboard, select Upload CSV with Form Data.
3. Select 1099-NEC as the form type and confirm the correct tax year is selected before uploading — the system will reject a file if the year doesn't match what's selected here.

Step 2: Upload the File

1. Select Browse or drag and drop the exported file into the Upload CSV with Form Data page.
2. Wait for the system to validate the file. This can take a moment depending on file size.
3. If the file uploads cleanly, you'll move to the Review step (Step 3 below).
4. If the file is rejected, you'll see one of two error types:
   • File Level Error: The entire file has a structural/formatting problem (e.g., wrong delimiter, bad encoding, header row issue) and none of the data could be validated. Only one file-level error shows at a time — fix it, save, and re-upload.
   • Field Level Error: Specific fields in specific rows are invalid (e.g., bad TIN format, missing required field). All field-level errors display together in a table so you can address them in one pass.
5. Common causes of rejection to check first (especially relevant since the file comes from software rather than manual entry):
   • Long numbers (like EINs or amounts) exported in scientific notation
   • Dates in a 2-digit year format instead of 4-digit (YYYY)
   • Zip codes with dashes instead of plain digits, or not formatted as text
   • Line breaks embedded within a cell (common with multi-line addresses)
   • Leading, trailing, or double spaces in any field
   • Periods or "#" characters in name or address lines
   • Blank dollar fields exported as "$0.00" instead of being truly empty
   • Empty Y/N indicator fields (must be explicitly "Y" or "N", not blank)
6. If you need to correct the export, do not fix it by reopening and resaving in Excel — Excel reformatting is a leading cause of repeat rejections. Use a plain text editor to correct specific fields, save, and re-upload. If the software itself is generating the error, escalate to IT/vendor to correct the export mapping rather than hand-editing every batch.
7. Once corrected, remove the failed file from the dashboard and upload the corrected version.

Step 3: Review Before Submitting

1. Select Start to move to the Review Form Information page.
2. Review the imported data line by line. This is your last checkpoint before the data becomes a form record in IRIS.
3. Delete any rows that shouldn't be included (e.g., a client record that shouldn't be filed this batch, a duplicate, a test row).
4. Select Add All to load the remaining records into the portal.
5. The Upload Successful page will show:
   • Number of forms successfully added and ready to submit
   • Number of forms flagged as needing additional information (these will need manual correction on the Unsubmitted Forms page before they can be submitted)

Step 4: Submit to the IRS

1. Go to the Unsubmitted Forms page.
2. Confirm forms are in Ready to Submit status. (Forms still in In Progress status are missing required fields and must be corrected first.)
3. Select the forms to submit (uploads via CSV are automatically grouped together, which makes batch selection easier).
4. Select Submit.
5. Review the Summary of Transmissions page — this is your final list of what's about to be sent to the IRS.
6. Select Submit All.
7. You'll land on the Your Form(s) Have Been Submitted confirmation page. Record the Receipt ID — this is your proof of transmission and is needed if the IRS or a franchise owner has questions later.

Step 5: Monitor Status

Check back under View Submitted Forms for the transmission status: