The Taxpayer First Act, enacted in 2019, prioritized American taxpayers and modernized the IRS. In response, the IRS developed the Information Returns Modernization (IR Mod) Program, which introduced the user-friendly IR Mod Portal for electronic preparation, filing, and distribution of 1099 forms.

 

Since its launch on January 1, 2023, the cloud-based IR Mod Portal has processed over 17,000 transmissions and received 65,000 form submissions from more than 3,400 transmitters. This paperless solution has been particularly beneficial for small businesses, eliminating the need for paper submissions and reducing expenses. Moving forward, the IR Mod Program will expand the portal's capabilities, accepting a wider range of information returns and digital asset forms. This will lead to substantial cost savings for the IRS by phasing out outdated systems.

 

By leveraging the IR Mod Portal, American taxpayers can conveniently file their 1099 forms electronically, saving time and resources. The platform ensures accuracy through error detection and alerts for missing information. Small businesses, in particular, benefit from reduced costs associated with paper, postage, and storage space. Enforcing tax laws efficiently and fairly, the program aims to increase voluntary compliance and narrow the tax gap. This will result in a larger budget for the United States, enabling investments in essential areas such as education, infrastructure, and public services.

 

Through the IR Mod Program and the user-friendly portal, the IRS strives to enhance the taxpayer experience, promote compliance, and modernize tax administration.