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Choosing the Best 1099 Filing Service: 2026 Compliance Roadmap

Why Choose a Specialized 1099 Filing Service?

The IRS has made e-filing mandatory for payers filing 10 or more information returns, such as Forms W-2, 1099, or 1098. Not abiding by this rule can be costly, with penalties starting at $60 per form and increasing to as high as $680, depending on how late the mistakes are corrected or if they are considered as “intentional disregard” by the IRS.

However, the benefit goes beyond just avoiding fines. Using a reliable 1099 filing service helps the payer stay compliant with instant TIN verification, checking duplicate entries, and maintaining clear audit records. These tools reduce the chances of backup withholding notices (CP2100) and save you from the headache of costly re-filings later.

Federal and State E-Filing Rules 2026

Important IRS Due Dates For 2026:

  • Recipient copy distribution: Feb 2, 2026
  • Recipient copy distribution for Form 1099-MISC (with Boxes 8 & 10), 1099-B, 1099-DA, 1099-S: Feb 17, 2026
  • Paper filing: March 2, 2026 (Form 1099-NEC: Feb 2, 2026)
  • E-filing: March 31, 2026 (Form 1099-NEC: Feb 2, 2026)

State Filing Requirements

Over 30 states take part in the IRS Combined Federal/State program. Some states, such as Pennsylvania and Oregon, require separate XML uploads. Choosing a secure 1099 filing platform that handles CF/SF filings and direct state XML submissions prevents the payer from having to move across different portals.

Essential Features of 1099 Filing Service

With the best 1099 filing service 2026, a single submission can cover all relevant states. This is especially useful for businesses with contractors or recipients across multiple states, as it saves time and reduces errors.

Given below are some of the features supported by an IRS-authorized 1099 provider:

Aspects What It Offers Why It Matters
Variety of Forms Covered Supports 1099-NEC, 1099-MISC, 1099-INT, 1099-DIV, 1099-R, and more. One platform handling all forms avoids redundant entries and mistakes.
Data Uploads and Integrations Import via CSV/Excel, sync with QuickBooks or Xero, or use REST/SFTP APIs. Processes a large batch of payees effectively and quickly.
Automated Compliance Checks TIN verification, USPS address validation, and duplicate detection. Points out errors beforehand to prevent rejected filings.
State Filing Support Supports CF/SF submissions, as well as direct XML uploads for states that require separate filings. Ensures filings are completed securely and comply with all relevant jurisdictions.
Security and Delivery SOC 2 Type II, multi-factor authentication, encrypted platform, plus print-mail service. Keeps sensitive data secure while meeting recipient notification rules.

Best 1099 Filing Service Providers 2026

Here’s a quick 1099 software comparison to help you pick the right platform for your filing needs:

1. Tax1099 (Zenwork)


Tax1099, a Zenwork product, is an IRS-authorized 1099 provider built for teams and firms that want bulk import options, data validation, and enterprise-grade security. It offers features designed to simplify 1099 filing workflows, including secure IRS-compliant e-filing, real-time TIN match, W9/W8 collection tools, and more. The platform is also known for its no-code integrations with 12+ accounting software.

  • Handles federal and state filings
  • Offers TIN match and USPS address validation
  • Strong API support plus CSV/Excel file upload
  • 24/7 AI tax assistance and live chat support
  • Track and view status updates

Best For

Tax1099 is the right choice for medium to large accounting and CPA firms and businesses that require comprehensive form coverage and validation tools.

Pricing

  • 1000+ forms: Custom pricing
  • 501 to 1000 forms: $0.68 each
  • 151 to 500 forms: $1.31 per form
  • 21 to 150 forms: $2.30 per form
  • First 20 forms: $2.99 per form

2. Avalara (Track1099)

Avalara 1099 & W-9 offers an API-first, end-to-end automated 1099 & W-9 compliance solution. The platform handles high volume filing, W-9 collection, TIN validation, and state filing. Its seamless integration features embed tax compliance directly into existing ERP and accounting systems.

  • Integrates smoothly with QuickBooks, Xero, Bill, and NetSuite
  • Automatic flagging of state requirements
  • Electronic W-9 collection and storage
  • AI chat assistance, live Q&A sessions, and access to Knowledge Center

Best For

Firms who need strong integrations with cloud accounting and a mature e-delivery/portal experience.

Pricing:

  • $0.63 per form: 501 forms and above
  • $1.30 per form: 166 to 500 forms
  • $2.30 per form: 16 to 165 forms
  • $3.10 per form: 1 to 15 forms
  • Annual subscription for enterprises

3. EFile4Biz

eFile4Biz is an IRS-authorized e-filing platform that lets businesses prepare, e-file, and distribute 1099s from a simple web dashboard without any need for software installation. This cloud-based platform offers a full filing service where they process and file 1099 forms for your business.

  • Integrates with popular accounting software QuickBooks and Xero
  • Stores copies for at least 4 years
  • Provides simple pay-per-form setup and no setup fees
  • Offers support via chat and email, plus callback requests via phone (for higher tiered plan)

Best For

Businesses that require an e-filing platform that is easy to use and has cloud-based access with robust delivery options.

Pricing:

  • Basic: Free for 1 user, pay-per-form only
  • Plus: $149/year for up to 10 users
  • Premium: $399/year for up to 20 users

4. TaxBandits

TaxBandits is a user-friendly IRS-authorized 1099 e-filing platform that handles 1099. It features AI powered tax filing assistance, multiple data import options, free corrections and retransmissions, etc., for a streamlined 1099 e-filing experience. It is also the only built-in solution to e-file 1099s directly from your Sage Intacct account.

  • Multiple data import options (CSV uploads, Google Sheets, integration with accounting software)
  • Dashboard that supports multiple businesses and EINs
  • Comprehensive CF/SF and state filing support
  • Offers access to tax experts via phone, email, and live chat

Best For

Teams that are managing multiple entities/EINs and mixed bookkeeping stacks

Pricing:

  • Custom pricing: 1000+ forms
  • $0.80: 501 to 1000 forms
  • $1.00: 251 to 500 forms
  • $1.15: 101 to 250 forms
  • $1.75: 11 to 100 forms
  • $2.75: 1 to 10 forms

5. 1099Pro (Sovos)

1099Pro is an IRS-approved e-filing platform popular with larger organizations looking for strong compliance features and state compliance. It offers bulk TIN matching, state compliance automation, and full-service print, mail, and eDelivery recipient options.

  • Combines desktop and cloud flexibility with strong validation and multi-entity support.
  • Offers state filing capabilities
  • Securely stores data for audit purposes
  • Supports role-based access to maintain control and data security
  • Provides customer support via phone and email

Best For

  • Best suited for large enterprises with their own IT teams.

Pricing:

  • E-file only: $499/Year
  • E-file + Print & Mail: $684/Year
  • E-File, Print & Mail + eDelivery: $714/Year

Compliance To-Do List for the Payer

Given below are some tasks that the payer must look into while filing:

  • Collect and verify all W-9s from the payees.
  • Check each form against IRS thresholds (e.g., 1099-NEC $600, 1099-INT $10).
  • Remember to follow the 10-return e-file mandate.
  • Plan and run tests by mid-January.
  • Keep records of filings, including IRS acceptance PDFs, for proof.

How to E-file 1099 Online?

Here is a step-by-step guideline to file Form 1099:

  • Gather W-9s early and confirm each TIN and name matches IRS data through a TIN-Match check.
  • Upload payee data by using bulk data upload.
  • Fix any flagged TIN, address, or state errors before submission.
  • E-file with the IRS or respective state agencies and track the filing status.
  • Send recipient copies online or by mail and keep records for at least four years.

Frequent 1099 Errors and Tips to Avoid Them

Some of the common mistakes made by the payers while e-filing 1099 online are covered below with preventive measures to avoid them:

Mistake Impact / Why It Matters
Selecting a provider without state coverage Can lead to late state penalties and repeated manual entries.
Uploading data without TIN matching May trigger CP2100 notices and 24% backup withholding.
Skipping role-based access controls Can expose PII and increase the chances of internal fraud.
Missing the 30-day correction window Leads to an increase in fines from $60 to $130 per form.

By using an IRS-authorized 1099 provider with built-in compliance controls, payers can adhere to all 2025 federal and state regulations while reducing manual effort and minimizing the risk of penalties.

Practical Examples

Example Result Solution Provided by 1099 Filing Service
Local bank submits 5000 INT forms in 10 states One single upload helps in federal and state submissions Achieved by 50 state CF/SF and direct XML upload
SaaS company withholds 24% backup tax on payment of $300 A filing is needed even for a payment of less than $600 Check Box 4 and e-file with data uploaded from your system
Real-estate manager sends 12 NEC and 2 MISC forms Crossed 10 returns, e-file is mandatory Dashboard with automatic form count helps keep threshold count accurate
Nonprofit fixes an incorrect TIN after filing The correction tool files within 30 days to help avoid the $60 fine In-built CORRECTED form filing process

FAQs

1. Is an IRS “authorized transmitter” automatically accepted by all states?

Not always. Always make sure the authorized transmitter supports both CF/SF states and separate-filing states.

2. Does the 10 return e-file mandate cover W-2 forms?

Yes, you should count all information returns, including W-2s, when checking if the threshold is met.

3. Can a payer file for amounts that are under the standard limits?

Yes, voluntary filings are accepted. They should also be done when backup withholding is involved or when the recipients request proof.

4. What security certifications should the payer look for in a service provider?

The provider should at least have SOC 2 Type II certifications. ISO 27001 and encryption for data at rest and in transit are recommended for added protection.

5. How fast can a filing error be corrected?

Most platforms let you submit the CORRECTED filings on the same day. Fixing issues within 30 days can help avoid an extra $60 penalty.

6. Are corporations always exempt from filing 1099s?

No, exceptions for medical, legal, and card payment vendors remain applicable. Choose a service provider that highlights these automatically.