Even though most businesses would prefer a static landscape, as far as the tax compliance rules are concerned, that predictability would make planning so much easier. IRS tax rules, however, are dynamic and complex. The reward for getting it right is significant.
Ok, so it’s complex. How then can filers and tax professionals address this increasing complexity? That’s where modern Tax Compliance platforms like Taxseer can help to gain an edge while greatly increasing efficiency and tax compliance. Best-in-Class companies find that a move towards a paperless, more automated tax compliance platform has produced higher productivity as it allows them better tax compliance, better visibility, the ability to collaborate, streamline processes, and avoid IRS penalties & damage to the brand reputation.
There are different due dates for 1099 Series forms for eFile, paper filing, and sending the recipient copy. It is a busy time for all businesses to gather the required information to file all 1099 forms, including the the most widely 1099-NEC Form Online (Non-Employee Compensation) and 1099-MISC Form. There is a clear distinction between the Form 1099s and W-2s and only full-time employees get the W-2s. Any wrong filing of 1099s or W-2s could lead to an IRS penalty and Taxseer will help you with the following checklist to e-file 1099 forms for error-free efiling with the IRS.
IRS Form 1099 eFile Checklist for the Tax Year 2022
The following checklist will make sure that you have all the required information before you start filing and submit the 1099 electronic file to the IRS:
- Review your vendor list: As per IRS rules, any business should have the vendor’s TIN and contact information before you start doing business with them. Review your vendor’s list to make sure that this information is available in your database.
- Send Electronic W-9 to the vendors through the Taxseer platform: If you have the vendor’s TIN missing then use the Taxseer’s free W-9 portal to send the W-9 request to the vendors. Taxseer will send the email with a secure link to vendors to connect to the portal. This electronic method of W-9 submission vastly improves the time to get back the TIN from the vendors as well as maintains better compliance with the IRS rules.
- Receive & Review the vendor’s TIN: Recipients can submit the TIN through the online W-9 form in the portal and it will be directly updated in the recipient/payee database. Review the TIN before you start filing the 1099s.
- Fill the online 1099 forms on Taxseer platform: Taxseer provides very user-friendly online forms that mimic the IRS 1099 paper form to avoid any confusion when filers move from paper filing to the electronic option. The form filing is guided by the tax-wizard to ensure that filers can file the 1099 forms correctly and the validation engine makes sure that all entries pass the IRS validations to avoid rejections.
One of the important changes from the Tax Year 2020 was the introduction of the Form 1099 NEC Online for easy reporting of nonemployee compensation and eliminating confusion over the filing deadline. The IRS moved all nonemployee compensation (NEC) income reporting from the traditional Form 1099 MISC Online Box 7 to the new form 1099-NEC. All other boxes to report different income types on the traditional Form 1099-MISC still remain the same. There is some shuffling of the boxes on the form 1099 MISC to account for Box 7 which was removed. Other than this, Form 1099-MISC is mostly the same and can be used to report income types such as rent, other income, or royalties.
Form 1099-NEC has Payer’s information (Name, Address, and TIN), the Receiver’s information (Name, Address, and TIN), and the boxes to report Box 1 (non-employee compensation), Box 4 (Federal Tax withheld), and Boxes 5-7 (State information). Use Box 1 to enter the Non-Employee Compensation for $600 or more. Use Box 4 to enter the backup withholding information.
You can view the updates to the 2022 General Instructions for Certain Information Returns (irs.gov) and the General Instructions for Certain Information Returns (2022) | Internal Revenue Service (irs.gov) here. For starters, learn the 5 Easy Steps to e-File Form 1099-NEC Online through Taxseer. Click here to understand the form 1099-NEC filing deadlines.
Taxseer has updated the eFile platform to include the new 1099 NEC Form Online as well as updated the Form 1099 MISC that has been impacted by the changes in the non-employee compensation reporting changes. A New Excel file upload option has been added to upload the form 1099 NEC through bulk upload. The bulk upload feature is used by filers having 20 or more 1099 NECs and it vastly reduces the filing effort for medium and large businesses.
- Review & submit the online 1099 forms: Taxseer provides the option to review all final forms with the edit option to make sure that all forms are filled correctly. The reviewed forms are added to the shopping cart so that all 1099 Forms can be submitted together.
- Mail the recipient copies to the recipients: Taxseer provides three service types to the filers for sending the recipient copies during the forms checkout from the shopping cart.
- eFile only: This option will only eFile the submitted forms with the IRS system. However, Taxseer provides a single PDF file for all recipient copies in the order so that the filer can easily print and mail the forms to the recipients.
- EFile & Mail: This option will eFile the forms with the IRS system as well as mail the recipient copies through a proven mail service provider for an additional charge of $1.25 / form. This is the preferred service opted by most of the filers as the efiling and mailing responsibility is handled by Taxseer.
- EFile & Recipient portal: This option will eFile the form with the IRS system as well as send an email with the link to the online forms to the recipients. A guideline for the PIN is sent along with the link and this works as the password to view the recipient copy online. Recipients can download and print the form by themselves.
- Monitor the IRS filing status: Taxseer dashboard helps filers monitor the form filing statuses with the IRS and take action for any rejections.
- Submit the online 1099 Corrections for any filing errors: Filers can submit the form 1099 correction forms for any filings that have been incorrectly submitted.
We hope that the form 1099 filing checklist will help you submit the correct form before the IRS due date to remain compliant with the IRS tax rules and avoid penalty. We will maintain your submitted file online for 7 years at no additional cost.
About Taxseer
Taxseer is a leading IRS-authorized e-file service provider offering you the best cloud-based solutions to perform online filings of Forms 1099 series, W-2, ACA (1095-B & 1095-C), 2290, 8849, 8809, and many more. We provide Wizard-driven e-filing for guided and error-free submissions and extend the security, intelligence, availability, and agility of the tax solution on the cloud. SSL-encrypted connections are used for transferring sensitive information and to provide a very safe environment for clients. As part of our commitment to making e-filing easy and convenient, we are always available.
