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How to E-File Form 1099-NEC with Tax1099 for the 2025 TY

File 1099-NEC electronically

Table of Contents

A complete playbook—collect data, validate TINs, transmit through our IRS-approved platform, and avoid rejections or penalties.

Why Electronic Filing—and Why Tax1099

E-filed returns are processed much faster than paper returns, often resulting in refunds within 21 days, compared to weeks or months for paper filings. It is also highly accurate since most e-filing software has built-in checks to prevent rejections.   

The IRS has made it mandatory to e-file if filing more than 10+ 1099-NEC forms. They offer an option to e-file 1099-NEC online with the IRS’s IRIS (Information Returns Intake System).  

This e-filing system is used for 1099 forms and can support manual entry and bulk uploads, all free of charge. However, it has certain limitations. The system does not support more than 100 returns per upload and requires a Transmitter Control Code (TCC).  

Private software such as Tax1099, an IRS-authorized e-filing platform, makes it easier to e-file 1099-NEC online without the hassle. 

 

Tax1099 Advantage Over IRS’s IRIS

  • No requirement for IRIS-specific TCC: The IRS requires a Transmitter Control Code (TCC) for bulk 1099-NEC filing.  Tax1099 uses its own transmitter credentials for form filing, so there is no need to separately apply for an IRIS TCC.  
  • Real-time TIN match: Verify TIN and name combination against IRS records within a single platform.   
  • USPS address validation: Ensure that USPS validates the validity and accuracy of recipient addresses for error-free Form 1099-NEC delivery.  
  • Audit logs: Track all form changes with built-in IRS validations for error-free, compliant filings.  
  • 4-year archive: Access filing data year-round for up to four years, even during the busy tax season.

Tax1099 offers a more scalable, feature-rich, and user-friendly e-filing platform for 1099 NEC. You can expect a streamlined correction cycle, faster form processing time, fewer rejections, better security, and more convenience.

 

Compliance Snapshot: Deadlines & Penalties

In order to remain compliant, it’s imperative to e-file 1099-NEC within the deadlines specified by the IRS. No extensions are granted for 1099-NEC filings, so timely submission is critical.

Filing Type 2025 Filing Season Deadline
E-File /Paper Filing January 31 
Recipient Copy Distribution January 31

If the deadline falls on a recognized holiday or a weekend, the next working day will be considered the deadline. 

Note: For the 2025 filing season, the deadline for 1099-NEC e-filing will fall on February 2, 2026 (January 31, 2026, is a Saturday).

 

Penalties

There is no automatic extension for filing Form 1099-NEC. Each late or incorrect Form 1099-NEC filed can trigger a penalty.

Timeline  Penalty
Filed within 30 days $60 per form
Filed 31 days late or till Aug 1 $130 per form

Tax1099 sends automated deadline reminders and status alerts to keep filers on schedule.

 

Pre-Filing Checklist in Tax1099 

Before e-filing 1099-NEC online, it’s important to make sure your data is clean, compliant, and ready for submission. This checklist outlines the essential steps to take before submitting the 1099-NEC to the IRS.

Collect W-9s   

W-9s are required to e-file 1099-NEC forms. W-9s collect a taxpayer’s details such as their legal name, address, and TIN. Requesting W-9s before filing is an essential pre-filing move. Use Tax1099’s built-in W-9/W-8 solicitation tool to request and collect taxpayer information.

Validate TIN  

Verifying Taxpayer Identification Numbers against IRS records is a vital step in the 1099-NEC e-filing process. An incorrect TIN match can lead to costly penalties and notices. Tax1099’s bulk TIN matching feature allows you to validate up to 10,000 TIN and name combinations in real time directly within the platform for error-free verification.

Import payee data   

Manually entering payee data, especially for thousands of 1099-NEC forms, is time-consuming and can lead to mistakes in the form. By importing payee data accurately using no-code integrations with leading accounting platforms like QuickBooks, Xero, NetSuite, ZohoBooks, and many more, you can ensure reduced manual effort and compliance risk. We also offer support for Excel and CSV formats.

Assign state information  

1099-NEC state filing requirements vary from state to state. Some states participate in the IRS CF/SF, which gives the IRS the ability to forward 1099-NEC to participating states, while other states require direct filing. Ensure compliance with state reporting requirements with Tax1099. We automatically flag payees in non-CF/SF states and route their filings accordingly Our state filing engine tracks updates to state rules and ensures forms are sent in the right format, to the right agency.

Review error dashboard  

Any error made during the 1099-NEC e-filing must be corrected before submitting the form to the IRS or state agencies. Using a secure dashboard, identify issues like duplicate EIN, missing ZIP, invalid amount, etc. Assign roles for better workflow, including adding members to handle data entry, reviews, and approvals.

 

E-File Workflow in Tax1099  

Tax1099 is an authorized e-filing agent of the IRS. We make e-filing 1099 NEC easier and faster. We will securely transmit your 1099-NEC forms to the IRS, and you will receive an immediate confirmation after successfully submitting your returns.  

1099-NEC Filing Requirements 2025  

  1. Payer Details: Payer’s Name, TIN, and Address. 
  2. Recipient Details: Recipient Name, TIN, and Address. 
  3. Federal Details: Non-employee Compensations (Box 1) and Federal Tax Withheld (Box 4). 
  4. State Filing Details (varies state by state): Payer State Number and State Tax Withheld.

 

Step-by-Step 1099-NEC E-Filing Workflow  

1. Create an account   

Sign in at Tax1099.com using your credentials. If you’re new, create a free account.  

2. Select filing season  

Go to ‘Forms’> ‘New Form’ and select 1099-NEC as the form type. Choose the tax year (e.g., TY 2025).  

3. Upload or sync data

Manually upload payer, recipient, federal, and state (if applicable) details. Or integrate Tax1099 with your accounting platform to auto-match columns from your imported data file to the correct boxes on the 1099-NEC form.  

4. Run Smart Validation

Run smart validation to check for errors in real time. Conduct real-time TIN Matches with IRS records, address checks using USPS databases, and business rule scans.  

5. Approve Batch

After the data check, submission IDs for tracking purposes will be assigned for each 1099-NEC submitted. We also show estimated IRS receipt time to track when the IRS will receive and process your forms.  

6. Transmit to IRS  

Electronically transmit 1099-NEC forms to the IRS via Tax1099’s IRS-authorized e-fling platform and get form status updates in real-time.  

7. Distribute recipient copies

Once 1099-NEC is successfully submitted, distribute the recipient copy using our platform’s secure USPS address delivery portal.  

8. Download confirmation PDFs

Get confirmation of the filed forms and submission receipts for the audit trail. Store the files for at least 4 years for future audits and inquiries.

 

Multi-State Compliance Made Easy 

The Combined Federal/State Filing Program (CF/SF) program allows the IRS to forward 1099-NEC to participating states.  However, many states still require direct reporting, each with its own filing thresholds and deadlines. Failing to comply with these requirements can result in penalties or compliance issues. 

Tax1099 auto-forwards accepted 1099-NEC data to all the CS/SF program participating states (33 states + DC). This streamlines compliance for most states, but not all states participate fully or accept all forms via CF/SF. 

For non-participating states like Pennsylvania, South Carolina, and Oregon, Tax1099 creates and submits state-specific files or transmits forms directly via API integrations.  

Get real-time visibility with our built-in dashboard. Review acceptance statuses for federal and state filing. No manual follow-ups are needed. Track accepted, rejected, or pending forms and download confirmation PDFs for an audit trail. 

State  1099-NEC Requirement    Combined Federal/State Filing Program  Separate State Filing    Filing Deadline 
Alabama  Required  Yes  No (unless state income tax is withheld)  Jan 31 (if state tax withheld) 

March 15 (if no state tax was withheld)  

Arizona  Required
if state income taxes withheld
 
Yes  No (unless state income tax is withheld)  Jan 31 
Arkansas  Required 

 

Yes  No  Jan 31 
California  Required  Yes  No  Feb 28 (paper filing)  

March 31 (e-Filing) 

Colorado  Required
(if state income taxes withheld)
 
Yes  No (unless state income tax is withheld)  Jan 31 
Connecticut  Required  Yes   No (unless state income tax is withheld)  Jan 31 
Delaware  Required  Yes   Yes  Feb 28 (paper filing) 

March 31 (e-filing) 

D.C.  Required  Yes  Yes  Jan 31 
Georgia  Required
if state income taxes withheld 
 
Yes  No (unless state income tax is withheld)  Jan 31 
Hawaii  Required  No  No  Feb 28 
Idaho  Required  Yes  No (unless state income tax is withheld)  Jan 31 
Indiana  Required
if state or local taxes withheld
 
Yes  No  Jan 31 
Iowa  Required
if state income taxes withheld
 
Yes  No  Feb 15 
Kansas  Required  Yes  No  Jan 31 
Louisiana  Required
if state income taxes withheld
 
No  Yes  Jan 31 
Maine  Required  No  Yes  Jan 31 
Maryland  Required
if state income taxes withheld
 
Yes  No (unless state income tax is withheld)  Jan 31 
Massachusetts  Required  Yes, but additional state filing required  Yes, additional state filing is required  Jan 31 
Michigan  Required  Yes, but additional state filing required  Yes, additional state filing is required  Jan 31 
Minnesota  Required
if state income taxes withheld
 
Yes, but additional state filing required  Yes, additional state filing is required  Jan 31 
Mississippi  Required  Yes  No (unless state income tax is withheld)  Feb 28 
Missouri  Required  Yes  No  Feb 28 
Montana  Required  No  Yes  Jan 31 
Nebraska  Required
if state income taxes withheld
 
Yes  No (unless state income tax is withheld)  Jan 31 
New Jersey  Required  Yes  No  Feb 15 
North Carolina  Required
if state income tax withheld
 
Yes  No (unless state income tax is withheld)  Jan 31 
North Dakota  Required  Yes  No (unless state income tax is withheld)  Jan 31 
Ohio  Required
if state income tax withheld
 
Yes  No (unless state income tax is withheld)  Jan 31 
Oklahoma  Required
(for payments of $750 or more)
 
Yes, but additional state filing required  Yes, but additional state filing required  March 31 
Oregon  Required  No  Yes  March 31 
Pennsylvania  Required 

 

Yes, but additional state filing required  Yes, but additional state filing required  Jan 31 
Rhode Island 

 

Required
if state income tax withheld
 
Yes  No (unless state income tax is withheld)  Jan 31 
South Carolina  Required
if state income tax withheld
 
Yes  No (unless state income tax is withheld)  Jan 31 
Utah  Required
if state income tax withheld
 
No  Yes, additional state filing is required if state income taxes withheld  Jan 31 
Vermont  Required
if state income tax withheld or if payment to a non-resident for services performed in the state
 
No  Yes  Jan 31 
Virginia  Required
if state income tax withheld
 
No  Yes  Jan 31 
West Virginia  Required
if state income tax withheld
 
No  Yes  Jan 31 
Wisconsin  Required  Yes  No (unless state income tax is withheld)  Jan 31 

 

Post-Filing Tasks & Corrections  

1099-NEC Corrections 

After submitting 1099-NEC forms to the IRS and applicable state agencies, you may discover errors such as incorrect payee names, TINs, payment amounts, or other data. These errors can be corrected using a corrected form.  

To correct these errors electronically, select the original return on Tax1099, click ‘Amend’ or ‘Correct,’ update the necessary fields, and retransmit the corrected form.   

Note: The IRS allows corrections within the same tax year without any additional fee. 

Backup-Withheld Taxes  

Proper reporting and payment of backup withholding are essential to avoid penalties. If TIN was not provided or is incorrect, backup withholding will apply and must be reported on Form 945.  

Tax1099 simplifies the backup withholding process by exporting Form 945 totals and generating EFTPS upload files to remit withheld taxes to the IRS. 

Archiving  

Having a secure and accessible archive helps with audit responses and compliance reviews, if any. The IRS expects taxpayers to store form data and recipient copies for future audits and compliance.  

Tax1099 platforms retain copies of all filed 1099-NEC forms and proof of recipient delivery for at least four years. These archives are typically in multiple formats, such as PDF (for official copies), Excel (for data analysis), or JSON (for integration with other systems). 

Audit Readiness 

Keeping detailed, timestamped audit logs of every action related to the 1099-NEC e-filing process, including who submitted the forms and when submissions occurred, offers transparency and accountability.   

Tax1099’s audit trail logs and tracks any changes to 1099-NEC forms. This helps demonstrate due diligence and can mitigate penalties during disputes.    

 

Common Filing Errors: Tax1099 Prevents

Even small errors in the 1099-NEC filing process can cause delays, penalties, or even IRS scrutiny. Tax1099 has been designed to ensure that any preventable and costly mistake can be avoided.

Risk  Description  How Tax1099 Protects You 
Missing 10-return e-file mandate  The IRS mandates e-filing for 10+ forms. 
  • IRS authorized e-filing platform 
  • Paper filing option disabled once form count is more than 10. 
Wrong form type (NEC vs MISC)  1099-NEC reports non-employee compensation while 1099-MISC reports miscellaneous payments.  
  • Automatically analyses and recommends the correct form type based on payment category 
Failed TIN Match  Incorrect TIN and name combination with IRS records 
  • Real-time bulk TIN Match with IRS records 
  • Flags error and blocks submission until the TIN is corrected 
Rejected state codes  Incorrect or missing state-specific codes 
  • Built-in validation checks for each state’s unique requirements before submission 
  • Flags schema errors or invalid state codes 
Late submissions  Missing the IRS or state e-filing deadline 
  • Automated countdown emails 
  • Alerts and notifications for form deadlines. 

 

Real-Life Scenarios (Payer Perspective) 

Scenario: A marketplace paying 800 contractors 

A large marketplace paid 800 contractors $600 or more in a single tax year. They’ll need to e-file 1099-NEC for all 800 contractors. This involves managing a large amount of data for hundreds of recipients. 

To make 1099-NEC e-filing seamless, Tax1099 allows the marketplace to upload a single CSV or Excel file containing all the contractor data. It then validates the TINs in real-time against IRS records. It also automatically routes the data to all relevant federal and applicable state agencies in one click.  

For the 34 states (plus DC) in the Combined Federal/State Filing (CF/SF) program, the system forwards the forms automatically. For non-participating states, Tax1099 handles direct e-filing. 

Scenario: Local retailer with 8 contractors 

A small local retailer with just 8 contractors must also e-file 1099-NEC if they paid their contractors $600 or more in one tax year (even though it’s less than the 10-return e-file mandate). 

Tax1099 offers convenient 1099-NEC e-filing no matter the volume. We automatically deliver recipient copies by physical mail or through secure electronic delivery. This helps save valuable time and resources spent on printing, postage, and follow-up. All forms and filing records are also stored securely for audit purposes. 

Scenario: Construction firm files on Feb 5 

A construction firm is e-filing 1099-NEC on February 5. The deadline for e-filing 1099-NEC forms with the IRS and furnishing recipient copies is January 31.    

Tax1099 immediately flags any late e-filing and auto-calculates the applicable IRS penalty. Usually, $60 per form if within 30 days. It also generates a penalty worksheet and gives the firm a clear estimate of their potential penalty. 

Scenario: Startup discovers $5,000 understatement 

A startup discovered that they added the incorrect payment amount for their subcontractors. Instead of inputting the correct amount, they underreported a contractor’s payment by $5,000 on a submitted 1099-NEC form.  

Generate a “Corrected” 1099-NEC easily with Tax1099. Amend the original form, update the figures, and re-submit the corrected version to the IRS. The corrected form is then electronically delivered to the contractor, usually within the hour. 

Scenario: Agency with PA contractors 

An agency hires contractors in Pennsylvania, a state that doesn’t participate in the CF/SF program. Instead, it requires direct state e-filing of 1099-NEC forms. 

Tax1099 handles this complexity by generating 1099-NEC forms or using an API to send the form directly to the state system, ensuring compliance with both state and IRS reporting requirements.

 

FAQs (Issuer-Only) 

1. Do I need an IRS TCC when I use Tax1099?
No, you don’t need to apply for a Transmitter Control Code (TCC) when you use Tax1099. We are an IRS authorized e-filing platform, which means all our customers are covered under our TCC. You can begin e-filing immediately without having to go through additional approvals for IRS TCC setup. 

 

2. How many records can I upload at once?
Compared to the IRIS CSV upload tool’s 100 filers limit, Tax1099 does not have any limit to the number of e-filers. Whether you’re importing via Excel, CSV, integrated accounting software, or our API, there’s no imposed cap on the number of records that can be uploaded at once.  

 

3. Does Tax1099 support mixed-form batches? 

Yes, Tax1099 supports different 1099 form filing within a single batch. You can submit multiple form types, such as 1099-NEC, 1099-MISC, 1099-INT. We automatically route the forms through the appropriate IRS schema without extra work. 

 

4. How fast will I see IRS acceptance? 

After submitting 1099-NEC form to the IRS, our dashboard will keep you updated with real-time status updates for every single part of the form filing process including “In Process,” “Accepted,” or “Rejected” without needing to manually check the IRS portal. 

 

5. What if a contractor opts out of electronic delivery?
Tax1099 prints and mails a paper Copy B via USPS with tracking, then archives the proof. 

Tax1099 prints and mails physical Copy B of 1099-NEC through USPS. It also stores of proof of mailing in your account and provides an audit-ready trail. 

 

6. How long should I retain submission records? 

The IRS recommends that filers retain their 1099 records for a minimum of four years. Tax1099 securely stores all submission records, audit trails, and confirmation PDFs for four years.