You can e-file many Information Return forms, but what are the benefits for e-filing 1099 forms specifically? Let’s dive in.
Buy a bundle of 1099 paper forms, fill them out by hand, stuff each one in an envelope, seal, add postage, place in the mailbox, and wait. Or fill out the forms digitally and we do the rest when you choose to e-file.
E-filing 1099 and other Information Return forms has many benefits because of the e-filing process. Traditional filing means you need to do the entire process with paper forms and wait to hear from the IRS that your forms are accepted or you made a mistake. E-filing speeds up the process because the e-file provider completes half of the process for you and you receive a confirmation for your forms, so you can trust that the IRS will receive accurate forms in a timely manner.
Here are 10 benefits of e-filing 1099 forms:
- No printing
- No mailing
- Improved security
- Save time
- Save money
- Fewer mistakes
- No need to file summary forms like 1096 or W-3
- You don’t need to know the current tax rules
- Reuse data year after year
- Verify TIN numbers with TIN Checking
If you choose traditional filing with paper forms and fill them out by hand, you will still need to make copies for your recipients. If you print over the forms, you will still use your printer on the paper forms and to make copies. If you choose to e-file, you don’t need to print anything. Simply save the forms in PDF format from your eFile360 account in a safe place and our team will print and mail paper copies (or e-deliver digital copies) to your recipients for you.
With traditional paper forms, you need to mail the completed forms to the IRS and copies to your recipients. With e-filing, your e-file provider does that for you. No trips to the post office. No need to purchase more stamps or fold a bunch of paper forms. Just one click to order and we’ll take care of the mailing and e-delivery.
Printing and mailing sensitive information, such as is found on all 1099 forms, can be risky. E-filing lowers this risk by electronically filing your forms directly to the IRS. Traditional paper forms must be mailed through the Post Office or another mailing service, which includes at least one middle man. Removing the middle man from the process and adding our security measures keeps your sensitive data safe.
eFile360 has completed the SOC 2 Type I compliance audit, having passed without exception. This means your data is secure, private, and confidential, while also being available to you at any time.
Whether you need to fill out a few forms or thousands, you will save time by e-filing. Traditional filing with paper forms takes so long between the tedious filling out process and the stuffing of envelopes. Add the time it takes for the IRS to receive your forms and hear back from them, and it’s easy to get frustrated. E-filing removes these headaches, especially when using the bulk upload option, which allows you to create many forms automatically from an Excel spreadsheet. Most of our clients take less than 30 minutes to create and order their forms.
When filing traditionally, you need to purchase a bundle of forms, stamps, and envelopes. For a pack of 10 forms and envelopes, it can cost more than $20 and the process of filing still remains. When e-filing with eFile360, you pay about $3.50 for one form, and that includes printing and mailing costs without the hassle. E-filing also offers volume pricing, which means you save even more money if you need to e-file many forms, from 51 to 1,001+, so each form can cost as little as $0.75 each.
Another money-saving aspect of e-filing is no paper waste. If you need 41 1099-MISC forms, you don’t have the ability to purchase exactly 41 forms, so instead, you would purchase a bundle of 50. Since the forms are dated by year, you would probably not need to use 9 of those forms, which adds up year after year.
When filing traditionally with a paper return, it’s easy to miss a box, write the wrong information, or transpose numbers. When e-filing, the e-file program will walk you through the process step-by-step, and alert you if a mistake or omission is caught.
eFile360 also offers customer service representatives via phone, email, and chat to help you through the process if you have additional questions or would like more assistance. Our customer service team can help explain the forms you’re ordering, and when you understand something more, it’s easier to make fewer accidental mistakes.
No need to file summary forms like 1096 or W-3
When you file your 1099 forms on paper, you also need to create and file Form 1096, Annual Summary and Transmittal of U.S. Information Returns, which lists totals of amounts in each box. This becomes very painful if you made an error and need to file correction forms. But when you e-file, forms 1096 and W-3 are not required. The e-filing system takes care of the summary forms for you.
When you use eFile360 to file your 1099 forms, you can print summary and total reports that summarize the amounts by payer, but you do not have to worry about filing 1096 or W-3 forms.
You don’t need to know the current tax rules
When it comes to your business’s money, you don’t want to trust an amateur accountant. When you choose to e-file, you have two layers of knowledge to ensure your forms are filed accurately. E-filing programs, like ours at eFile360, is updated with the latest information for the current tax year. Plus, our team is there to help you at each step of the process. Though we are not tax experts and we cannot provide you tax advice, we can certainly help you with your form-specific questions. We learn the form-specific requirements, so you don’t have to.
Reuse data year after year
Based on IRS regulations, eFile360 stores customer data for 4 years. This benefits you in two ways. First, this means if you work with some of the same contractors year after year, you can reuse last year’s data to complete this year’s forms, saving you time and hassle.
Secondly, this allows you to e-file, specifically E-file + Print & Mail, for the current year plus the previous 3 years. This is ideal for cases where you e-file for this year’s taxes and then realize you should have e-filed for that contractor last year or the year before. Now you can do so quickly and easily by e-filing, even on the same order.
Storing data also benefits you if you need to file a correction form. Simply reuse the stored data, update it so it’s accurate, submit your order, and your data is updated, ready for reuse next year.
Verify TIN numbers with TIN Checking
Have you or your contractors ever been unsure about a Tax Identification Number (TIN)? A TIN is typically a Social Security Number (SSN) or an Employee Identification Number (EIN). As an IRS-approved TIN Check provider, we verify the TIN you provide for your forms before submitting the forms to the IRS. If the TINs are accurate, we submit the forms for you. If they are inaccurate, we inform you to give you time to update the numbers before we submit the forms to the IRS.
No matter what kind of 1099 form you need to file or how many, you can be confident that e-filing will save you time, money, and a giant headache.