At a Glance
The IRS is shutting down the FIRE system on December 31, 2026. Real estate companies, title companies, closing attorneys, property managers, and mortgage servicers that file 1099-S, 1098, and 1099-MISC forms must transition to IRIS. BoomTax accepts your existing FIRE-format files and handles the IRIS conversion — no changes to your closing or property management software required.
This article is part of our IRS IRIS Resource Center
— your complete guide to the FIRE→IRIS migration.
How the FIRE Shutdown Affects Real Estate
The real estate industry touches multiple information return types filed through the FIRE system. From property sales to mortgage interest to rental income, real estate professionals have reporting obligations that span several IRS form series. When the FIRE system permanently shuts down on December 31, 2026, all of these filings must move to IRIS.
Unlike some industries where a single form type dominates, real estate involves a mix of forms filed by different parties — title companies file 1099-S for closings, mortgage servicers file 1098 for interest, property managers file 1099-MISC or 1099-NEC for contractors and rental distributions. Each of these has a separate filing obligation, and each must transition from FIRE to IRIS.
Real Estate Forms Affected by the FIRE Shutdown
| Form | Purpose | Who Files |
|---|---|---|
| 1099-S | Proceeds from real estate transactions (sales, exchanges, foreclosures) | Title companies, closing attorneys, real estate brokers (the "person responsible for closing") |
| 1098 | Mortgage interest received from borrowers | Mortgage lenders, mortgage servicers, banks with mortgage portfolios |
| 1098-T | Tuition statements (relevant for real estate education institutions) | Educational institutions |
| 1099-MISC | Rental income distributions, royalties, other miscellaneous payments | Property managers distributing rental income to property owners; real estate investment trusts |
| 1099-NEC | Non-employee compensation | Property management companies paying independent contractors (maintenance, repairs, landscaping) |
| 1099-A | Acquisition or abandonment of secured property | Mortgage lenders reporting foreclosures and deed-in-lieu transactions |
| 1099-C | Cancellation of debt | Lenders that forgive or cancel mortgage debt (short sales, loan modifications) |
1099-S: The Core Real Estate Transaction Form
The 1099-S is the form most closely associated with real estate. It reports the gross proceeds from the sale or exchange of real property, including residential sales, commercial transactions, land sales, and exchanges under IRC Section 1031. The "person responsible for closing" — typically the settlement agent, title company, or closing attorney — is required to file the 1099-S.
Timing Considerations for Real Estate Transactions
Real estate transactions create a unique timing challenge for information return filing. Unlike financial institutions that process a full year of activity and then file, real estate closings happen continuously. A title company may close hundreds or thousands of transactions throughout the year, each generating a 1099-S that must be filed by the following February 28 (paper) or March 31 (electronic).
Many title companies and closing attorneys batch their 1099-S filings — accumulating closings throughout the year and filing them all at once during the annual filing window. Under FIRE, this meant generating a single Publication 1220 flat file with all B records and uploading it. Under IRIS, the same batch approach works through BoomTax — generate the FIRE-format file from your closing software, upload to BoomTax, and we handle the rest.
Exemption Certificates and the 1099-S
Not every real estate transaction requires a 1099-S. The seller can provide a certification of exemption (under IRC Section 6045(e)) for certain principal residence sales that meet the exclusion requirements. The FIRE-to-IRIS transition does not change the exemption rules, but it's important that your closing software correctly handles the flag indicating whether a 1099-S was issued — this data element maps from a FIRE field position to an IRIS XML element.
1098 Mortgage Interest Reporting
Mortgage lenders and servicers file Form 1098 for each borrower who pays $600 or more in mortgage interest during the year. For large mortgage servicers, this means filing hundreds of thousands or millions of 1098 forms annually. The 1098 includes:
- Box 1: Mortgage interest received from the borrower
- Box 2: Outstanding mortgage principal as of January 1
- Box 3: Mortgage origination date
- Box 5: Mortgage insurance premiums
- Box 6: Points paid on purchase of principal residence
- Box 10: Property address (required since 2016)
In Publication 1220 format, each of these data elements occupies specific character positions in the B record. In IRIS XML, they map to named elements within the 1098 schema. The property address field is particularly important — it requires structured street, city, state, and ZIP data in IRIS XML, whereas FIRE used a more free-form text approach. BoomTax's conversion engine parses the FIRE address fields and maps them to the structured IRIS elements.
When Do 1098 Forms Move to IRIS?
The IRS has been expanding IRIS in phases. The 1099 series is already on IRIS. The 1098 series, along with other form types (W-2G, 5498), will transition to IRIS before the FIRE shutdown date of December 31, 2026. Mortgage servicers should plan for IRIS filing for Tax Year 2026 returns, due in early 2027.
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Rental Income and Property Management Reporting
Property management companies have multiple reporting obligations:
- 1099-MISC for rental income distributions: When a property manager collects rent on behalf of a property owner and distributes the net proceeds, the payments to the owner may be reportable on 1099-MISC (Box 1, Rents). This applies when the property owner is not an individual or when the payments exceed $600.
- 1099-NEC for contractors: Property management companies that pay independent contractors — plumbers, electricians, landscapers, maintenance workers — $600 or more must file 1099-NEC. This is often a significant volume for companies managing large portfolios.
- 1099-MISC for royalties: Real estate companies involved in mineral rights or natural resource royalties report these on 1099-MISC Box 2.
All of these forms currently flow through FIRE and must transition to IRIS. For property managers using software like Buildium, AppFolio, Yardi, or RealPage, the year-end 1099 export is typically in Publication 1220 format. BoomTax accepts these files directly.
Closing Software and Title Production Systems
Title companies and closing attorneys rely on title production systems (TPS) and closing software to generate 1099-S data. Common platforms include:
- SoftPro — widely used by title companies and closing attorneys
- ResWare / Qualia — modern cloud-based closing platforms
- RamQuest — title and closing production
- TitleExpress — used by title insurance underwriters and agents
- Custom or ERP-integrated systems — larger companies with bespoke solutions
Most of these systems export 1099-S data in Publication 1220 format or CSV. BoomTax accepts both. Upload your existing export files, and BoomTax converts them to IRIS XML and files with the IRS. No need to wait for your closing software vendor to release an IRIS update.
Frequently Asked Questions
Yes. The 1098 series currently filed through FIRE will move to IRIS before the December 31, 2026 shutdown. Mortgage servicers should plan for IRIS filing for Tax Year 2026 returns. With BoomTax, you can continue generating FIRE-format files from your servicing platform — we handle the conversion and IRIS submission.
Title companies have three options: file directly through the IRIS Taxpayer Portal (manual entry or CSV, suitable for lower volumes), build an A2A API integration (significant development effort), or use an IRS-authorized provider like BoomTax. With BoomTax, export your 1099-S data from SoftPro, Qualia, or any closing software in Publication 1220 format and upload it. BoomTax converts to IRIS XML and files automatically.
Property managers filing 1099-MISC for rental income distributions and 1099-NEC for contractor payments must transition these filings from FIRE to IRIS. The 1099 series is already supported on IRIS. BoomTax accepts Publication 1220-format exports from property management software like Buildium, AppFolio, Yardi, and RealPage — no format changes needed.
The IRS is expanding IRIS in phases. The 1099 series is already on IRIS. The 1098 series will transition to IRIS before the FIRE shutdown date of December 31, 2026, meaning mortgage servicers will use IRIS for Tax Year 2026 filings due in early 2027. Check the FIRE-to-IRIS transition timeline for the latest IRS rollout schedule.
Only if you plan to file directly with the IRS through IRIS. The IRIS TCC application takes 45 or more days. If you use BoomTax, you do not need your own TCC — BoomTax holds the transmitter TCC and files on your behalf. See our FIRE end-of-life checklist for a complete preparation guide.
Next Steps for Real Estate Professionals
Author
Ken Ham
Founder at BoomTax
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Passionate about making tax compliance simple so businesses can focus on what matters.
BoomTax and its affiliates do not provide tax, legal, or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal, or accounting advice. You should consult your own tax, legal, and accounting advisors prior to engaging in any transaction.
