How to File 1099 Electronically with Tax1099?

Why Electronic Filing Matters in 2026 ?

Now, more than ever before, businesses are choosing to e-file their information tax returns. That’s because there are some big advantages to switching from paper filing to electronic filing. Some of the biggest pros are:

1. One upload covers more than the IRS

With one electronic submission, your forms go straight to the IRS and also to every state that participates in the Combined Federal/State (CF/SF) program. That means that there is no need for duplicate uploads or juggling state websites.

2. No mailing hassles or paper trail

You need not worry about envelopes and stamps or wait in line at the post office to file your information returns. Instead, you can have everything sent securely online, including recipient copies.

3. You get quick confirmation

Instead of having to wait anywhere between a few days and weeks, you get a digital receipt right away. Yes, the IRS may take a few days to finalize the status, but your submission proof is ready instantly.

4. You can lower your risk of penalties or rejections

Filing your 1099s through Tax1099 makes mistakes a lot less likely. And that matters, because the IRS can fine you up to $340 per form if you file late or with errors. If they think you ignored the rules, it can go up to $680 per form.

To give you an idea, if you had just 25 forms with problems, the penalties could run between $8,500 and $17,000. That’s why e-filing right the first time saves a lot of stress (and money).

5. You can make easy and quick corrections

Following from the previous point, suppose you realised you made a mistake while filing the form. If you e-file, and something’s wrong, you can just update the form in your dashboard and resubmit.

6. You get secure storage

Unlike paper, your digital forms are stored safely in the cloud, protected from hardware crashes, water, or fire.

E-File Eligibility & IRS Rules

The IRS 10-return rule says: if you file 10 or more information returns in a year (that counts all forms — 1099s, W-2s, 1098s, 5498s, 1099-DA, etc.), you must e-file. That rule went into effect for tax year 2023. If you’re under 10, e-filing can still save time — and some states make e-filing mandatory even if you’re under the federal threshold.

Find the 1099 deadline for 2025 below:

Note: Missing a deadline by even one day can trigger penalties.

Checklist for Filing Form 1099

Before e-filing, you can refer to this quick payer 1099 guide with a step-by-step list of what to prepare and do so you can avoid mistakes and keep your filing stress-free.

1. Collect W-9 forms

Ask every payee, which can be a contractor, vendor, or service provider, for a W-9 form to know their proper name, address, and Taxpayer Identification Number (TIN), as well as their business type.

2. Verify TINs early

Use a TIN Match tool (Tax1099 has one built in) to confirm the numbers are correct to avoid rejected forms.

3. Check reporting thresholds carefully

• Report $600 or more paid for services, rent, prizes, or awards.
• Report $10 or more for interest or dividends.
• Always report tax withheld.

4. Keep your data organized

You can organise and maintain your data using a spreadsheet. Include columns like this:

5. Double-check addresses
Ideally, you would want to run all your payee addresses through USPS verification tools so that you can reduce the chances of returned or undeliverable forms.

6. Review business type rules
Most corporations are exempt from filing 1099s, but there are some exceptions. You still need to report:

• Medical and healthcare payments (report on Form 1099-MISC, Box 6)
• Attorney fees for services (report on Form 1099-NEC, Box 1)
• Gross proceeds paid to attorneys (Report on Form 1099-MISC, Box 10)

How to File 1099 Electronically with Tax1099?

With Tax1099, the e-filing process becomes simple and secure. It’ll handle the entire process from start to end.

Here’s how you do it:

Step 1: Tax1099 Sign up

You can create an account in a couple of minutes. (You won’t need a credit card up front, so you can first explore and see how it works).

Step 2: Get your data in

Tax1099 gives you the option to import data in bulk, which means you won’t have to manually type in stuff. You can:

• Upload a spreadsheet,
• Pull info straight from QuickBooks, Xero, or other accounting software, or
• Connect through an API if you’ve got a custom system.

Step 3: Let the system double-check the information

Tax1099 is designed to help reduce errors and rejections, so it will flag common mistakes, such as a missing TIN, incorrect numbers, and even incomplete state details that could lead to rejection.

Step 4: Submit the forms

When it all looks good, just click the button. Your forms will be sent securely to the IRS and, if your state is in the program, to them too. You’ll see a confirmation ID on your dashboard once you have submitted your form/s.

Step 5: Give contractors their copy

The people you paid need a copy as well. You’ve got options:

• You can e-mail a secure link (only if they agreed to electronic delivery), or
• Let Tax1099 handle printing and mailing for a small fee.
• Alternatively, you can print out the copies and mail them yourself.

Tip: You only pay for the forms you actually file. If you’ve got 25 or more, the cost per form drops, which is nice if you’ve a lot of forms to send out.

State 1099 Filing Requirements

When you file through Tax1099, most of the heavy lifting for state filing is already covered. Here’s an overview of some important details for you:

• If a state is part of the IRS Combined Federal/State (CF/SF) Program, your accepted forms are automatically forwarded there.
• Some states don’t use the CF/SF system or require direct filing, especially if state income tax was withheld.

For example, Oregon uses its own iWire system, and California often needs a separate submission if state tax is withheld or if it has state-only rules. When filing through Tax1099, the software will flag these cases and guide you through what to do.

• Other states only want a 1099 in case state tax was withheld, such as Virginia.

Again, the Tax1099 software alerts you of such cases, so nothing slips through the cracks.

Note: When you e-file with Tax1099, your information remains secure as forms are processed on U.S. servers with SOC 2 compliance. And you can track both IRS and state filing status from one dashboard.

Tip: The simple green checks on the dashboard mean “accepted,” and red marks are the sign that something needs fixing.

What’s Next After You File 1099s?

Your job isn’t always done once you finish filing. There are still some things to keep track of or consider from your end.

Record Keeping

You may need to have your data and receipts stored for various reasons.

• Tax1099 keeps your e-file receipts, forms as PDFs, and W-9s for four full years.
• You can also export a filing history for banks, investors, or auditors as proof that you were compliant. The audit log will show how your 1099s were handled.

Extra Time for Filing

If you realize you’re short on time, you can request extra filing days.

• You can use Form 8809 (it’s available on Tax1099). For most 1099s, you get an automatic 30-day extension only if Form 8809 is filed by the due date.
• However, no automatic extension is available for Form 1099-NEC (or W-2); an extension may be granted only for specific reasons.

Do note that extensions don’t give you more time to send copies to your contractors or payees; instead, it’s an extension of the deadline for filing with the IRS.

Corrections

Sometimes, the IRS may send back a rejection.

• Most errors come from the payee’s name not lining up with their Tax ID number. If that happens, correct and resubmit promptly; if your original submission was on time, a promptly filed correction after an IRS rejection is treated as timely.
• You might get a CP2100 “B-Notice” if a TIN on file is wrong. In such cases, you’ll need to follow the IRS B-notice steps and may also need to start backup withholding.

Real-Life Scenarios

These are some real-life scenarios to help you form a better idea of the different forms that would need to be filed under various circumstances:

FAQs For Filing Form 1099

1. Do I need my own IRS Transmitter Control Code (TCC)?

No, not if you are e-filing with Tax1099. Tax1099 already has its own TCC, and so you’ll only need to prepare and submit your forms, and the platform will send those to the IRS for you.

2. Can one login handle several payer EINs?

Yes. You can add each Employer Identification Number (EIN) as a separate sub-account to manage each distinct business you are filing for.

3. What happens if the IRS rejects my file on March 31?

Even if the IRS rejects your file on March 31, i.e., deadline day, you’ll still have 10 calendar days to fix the issue and resend. As long as your first submission was on time, the IRS will treat the corrected version as filed on time.

4. Do corporations ever receive a 1099?

Yes, you will need to submit 1099s for corporations in some cases. For example, corporations must still be reported for medical and healthcare payments (1099-MISC, Box 6), attorney fees (1099-NEC, Box 1), and fishing-boat crew payments, among others.

5. Is email delivery of 1099s allowed?

Yes, but only if the recipient (payee) has agreed to receive them electronically. Tax1099 helps you collect and track this consent automatically.

6. How long must the payer keep the records?

It is best that you keep 1099 records for a minimum of 3 years after the filing deadline or payment date. You would want to hold onto them for 4 years if there was any backup withholding. Most businesses, though, keep it for anywhere between 4 and 7 years.

7. Is Form 8809 free inside Tax1099?

The IRS doesn’t charge for Form 8809. Tax1099, however, applies its own filing fee. So, it isn’t free on the platform, and the fee is just the standard per-form charge, depending on the total number of forms you are filing through Tax1099.

Filing 1099s doesn’t have to be hard. Just load your data into Tax1099, clear any alerts, and e-file with the IRS and states in no time.

Start filing on Tax1099 Now.