FIRE Software vs TaxFormHero: Which Fits Tax Year 2026?

FIRE software prepares information returns for the IRS’s legacy FIRE system, which the IRS plans to retire. TaxFormHero is built around IRIS, the system replacing it. If you still use a FIRE-based tool, the practical question is no longer which product has more features. It is whether that product can transmit your tax year 2026 returns in the 2027 filing season. This guide compares the options on that basis, with the IRS rules stated first and the product differences after.

TL;DR

• The IRS states that current FIRE users must obtain an IRIS TCC and move to IRIS for tax year 2026 returns filed in the 2027 filing season.
• IRIS itself is free, but its Taxpayer Portal is limited to manual entry or CSV upload. Larger volumes go through a third-party A2A provider, which may charge a fee.
• Compare any platform on IRIS support, import, multiple payer accounts, corrections, recipient delivery, security attestation and total per-form cost.
• TaxFormHero transmits federal returns through IRIS A2A, charges per form with no subscription or signup fee, and holds a SOC 2 Type I attestation.

If you would rather not do this on paper, e-file Form W-2 online with TaxFormHero instead.

What FIRE software does and why it is changing

FIRE stands for Filing Information Returns Electronically. It is the IRS system that accepts information returns as formatted files. Traditional FIRE software has one core job: take your payer and recipient data, build a file in the IRS’s required layout, and let you upload it. Some packages add form printing, recipient mailing and TIN checks.

The IRS is replacing FIRE with the Information Returns Intake System, known as IRIS. According to the IRS, IRIS is a phased replacement for FIRE, and beginning in 2027 all forms previously supported by FIRE will be available through IRIS. The IRS also says on its FIRE page that FIRE is planned for retirement and that current users must obtain an IRIS TCC and transition for tax year 2026 filings in the 2027 filing season.

The IRS published a short list of FIRE cutoffs on that same page for the 2026 calendar year:

Check the IRS FIRE page for the current schedule before you act, because the IRS can revise it.

There is a useful buffer. The IRS says in its January 14, 2026 working-group Q&A that filers could use FIRE or IRIS for tax year 2025 filings processed in 2026, while tax year 2026 filings are targeted for IRIS after FIRE retirement. So a FIRE tool may have worked for your last filing. It is the next one that matters.

How IRIS differs from FIRE

IRIS accepts returns through two channels, according to the IRS page on e-filing information returns with IRIS:

1. The Taxpayer Portal (UI). You enter returns manually or upload a CSV. The portal handles up to 100 returns at a time, lets you manage issuer information, keeps records of completed, filed and distributed forms, and lets you download payee copies.
2. Application to Application (A2A). This is for third-party software or developers filing larger volumes. Transmissions can be up to 100 MB.

The IRS says IRIS can be used for information returns for tax year 2022 and later, and that the service is available to businesses of any size without special software. That is the first thing to understand when you compare vendors: a small filer does not need to buy anything to reach IRIS. A vendor has to earn its fee through what it does around the transmission.

On cost, the IRS working-group Q&A says IRIS itself is free, but a third-party A2A provider may charge a fee. That is the honest baseline. Every paid tool, TaxFormHero included, is selling workflow, scale, delivery and support, not access to the IRS.

Who needs more than the free portal

The IRS portal works for a business with a handful of contractors. It becomes a bottleneck for others.

• Accounting and bookkeeping firms that file for many client companies need separate payer accounts and a clean way to switch between them.
• Payroll providers and HR teams filing hundreds or thousands of W-2s or 1099s do not want to split work into batches of 100.
• Credit unions, mortgage companies, retirement plan administrators and digital asset brokers file other forms in volume and need a repeatable import process.
• Anyone who mails recipient copies has to print, stuff and post them unless the platform does it.

The e-file threshold is also lower than many small businesses assume. The IRS says electronic filing is generally mandatory beginning at 10 aggregate information returns for a calendar year, including W-2 filings with the Social Security Administration. Count all form types together, not each type separately.

The options compared

Three kinds of tools are on the table. Specific vendors vary within each group, so confirm current details on each vendor’s own site.

FIRE software columns are deliberately general. Some established desktop and cloud vendors are publishing their own FIRE-to-IRIS transition plans, and a few have already added IRIS. If your vendor says it will support IRIS, ask for the specifics listed in the next section before you renew.

What to check before you choose

The question “which platform has the best features” is too broad. Use these seven checks, in this order.

1. Does it transmit through IRIS A2A?

This is the gating question. A2A access requires the provider to hold a TCC, an API client ID, a schema package and successful ATS (assurance testing system) transmissions, per the IRS IRIS page. Ask the vendor whether it has completed that process and whether it will transmit tax year 2026 returns in January 2027. A promise to “support IRIS soon” is not an answer.

2. Which forms does it cover?

FIRE accepted a long list: Forms 1097, 1098, 1099 except 1099-DA, 3921, 3922, 5498, 8027, 8596, 8955-SSA, 1042-S and W-2G, according to the IRS. Your business may file only 1099-NEC and W-2 today, but credit unions, mortgage lenders and plan administrators need the less common forms. TaxFormHero supports 1099-NEC, 1099-MISC, 1099-K, W-2 and 20+ IRS information-return forms, including ACA forms. Confirm any vendor’s list against the forms you actually file.

3. How does it import and validate data?

Look for an Excel or CSV template, field-level validation before submission, and a clear limit on file size. The IRS portal caps manual batches at 100 returns, so a large CSV workflow is worth real money to a high-volume filer. Our 1099 CSV template guide explains how to split large files before an IRIS upload.

4. Can it manage many payers?

An accounting firm filing for 60 client companies needs each payer’s EIN, name, address and TCC-related details stored separately, with filings kept apart. Ask how the platform handles this and whether you can see all payers at once.

5. How are corrections handled?

Under FIRE, filers had a correction window and software had to produce one-step or two-step correction files. IRIS works differently. The IRS says IRIS identifies record and submission IDs with errors; rejected submissions must be resubmitted, and forms accepted with errors should be corrected promptly. A good platform shows you the error at the record level and lets you fix and resubmit without rebuilding the batch.

6. How do recipients get their copies?

Recipient copies are a legal obligation, not a courtesy. Check whether the platform offers PDF downloads, secure e-delivery with recipient consent where required, and print-and-mail. Hidden mailing costs are a common surprise.

7. Security and support

A tax platform holds names, addresses and TINs. Look for a third-party attestation, encryption in transit and at rest, access controls, and a support team that answers during filing season. TaxFormHero holds a SOC 2 Type I attestation and uses 256-bit encryption. A Type I report describes the design of controls at a point in time, so ask any vendor, us included, which report type it holds and when it was issued.

What TaxFormHero costs

TaxFormHero charges per form. There is no subscription, signup fee or annual contract. Pricing is graduated: each tier applies only to the forms inside it, and a larger order does not reprice earlier forms.

W-2, W-2c, 1095-B and 1095-C filing starts at $2.99 per form for the first 50 forms, with lower rates at higher volumes.

Optional services are priced per form:

A worked example

A bookkeeping firm has 200 1099 forms to prepare for a client.

• First 150 forms at $1.99: $298.50
• Next 50 forms at $0.99: $49.50
• Federal subtotal: $348.00

The firm adds encrypted e-delivery for all 200 recipients at $0.19, which is $38.00, and verifies the TINs of 40 new contractors at $0.49, which is $19.60. The total is $405.60, before any state filing. Combined Federal/State Filing states carry no additional state-filing charge. In other states, state filing adds $0.99 per form. TaxFormHero supports state filing for 41+ states and Washington, D.C. See the full list on the pricing page.

The point of this arithmetic is that a per-form model suits filers whose volume swings. A seasonal business pays for the season. A firm with a license or annual subscription pays for the year whether it files or not. A subscription can still win for a firm that files a very large number of forms all year, so run your own count.

Our perspective on the FIRE transition

We built TaxFormHero in 2024, after the IRS had already announced IRIS. That timing shaped the product. We did not have a FIRE file generator to retrofit, so the platform was designed around IRIS A2A from the start.

Here is what we see when filers talk to us. Most are not worried about the technology. They are worried about the TCC. IRIS requires an Information Returns TCC, and the application takes time, so a firm that waits until January risks missing the filing deadline for reasons unrelated to software. Our guides on the IRIS TCC delay and on accounting teams filing 10 or more returns cover the steps.

Our advice is plain. Apply for the TCC first. Clean your recipient data second, because a missing TIN or a mismatched name causes more rework than any software difference. Pick the platform third. If you only file a few forms, use the free IRS portal. If you file for multiple payers, import in bulk or mail recipient copies, a paid platform saves hours, and per-form pricing keeps the cost visible. We would rather you choose the right tool than the one we sell.

For more detail on the timeline, see our summary of the critical dates in the FIRE to IRIS transition, and our overview of the alternatives to the FIRE system.

— Nazrul

Moving from a FIRE tool to TaxFormHero

If you already use FIRE software, the move takes five steps.

1. Request an IRIS TCC if your organization does not have one. Allow for processing time.
2. Export your payer and recipient data from the old tool to Excel or CSV.
3. Map the columns to the TaxFormHero import template and fix flagged records.
4. Run TIN matching on recipients you have not verified before. It costs $0.49 per verification.
5. Review, pay for the forms you file and transmit once the forms look correct.

Filers with 1099-R, ACA or enterprise-scale volume can read about enterprise migration timelines and our enterprise information return filing page. ACA filers should also read the ACA AIR filing workflow, since 1095 forms run through a different IRS system than IRIS.

Ready to start

If you have decided that a paid platform makes sense, see TaxFormHero’s per-form pricing and try the import with a small batch. There is no signup fee, so you can see how your data maps before you commit a full filing.

FAQ

Is FIRE software still usable?

For now, in a limited way. The IRS says filers could use FIRE or IRIS for tax year 2025 returns filed in 2026. For tax year 2026, the IRS says FIRE users must move to IRIS, so a FIRE-only tool will not carry you into the 2027 filing season.

Do I need paid software to use IRIS?

No. The IRS says IRIS is free and available to businesses of any size without special software. The Taxpayer Portal takes manual entry or CSV upload, up to 100 returns at a time. Paid software makes sense when you file in larger volumes, manage several payers, or want delivery and TIN checks built in.

Is TaxFormHero IRS-authorized?

Yes. TaxFormHero is an IRS-authorized information-return e-filing platform, and it transmits federal returns through IRIS A2A. It also holds a SOC 2 Type I attestation. Verify the status of any provider you consider against IRS guidance.

How many returns trigger the e-file requirement?

The IRS says electronic filing is generally required once you file 10 or more information returns in a calendar year, counting all types together, including W-2s filed with the Social Security Administration. Below that, paper filing is generally allowed, but e-filing is usually faster and easier to correct.

What does TaxFormHero cost for 500 1099 forms?

The first 150 forms cost $1.99 each, which is $298.50. Forms 151 to 500 cost $0.99 each, which is 350 forms and $346.50. The federal total is $645.00, before optional add-ons such as e-delivery or state filing.

Sources

• E-file information returns with IRIS, IRS
• Topic no. 801, Who must file information returns, IRS
• Filing Information Returns Electronically (FIRE), IRS
• IRS reminder: Information return e-file system transitioning to a new platform
• Information Returns Intake System (IRIS) Working Group Q&As, January 14, 2026

Recommended

• Tax Year 2026 Changes: $2,000 Threshold, Tips & Overtime Boxes, IRIS
• Tax Form Hero - Best Small Business 1099 Software: What to Use in 2026
• Best IRS FIRE System Alternative for 2026 Filing