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Are you compliant with IRS regulations for eDelivery? You can be, with Tax1099! 

IRS eDelivery Regulations

Our goal at Tax1099 is to help our clients remain in compliance with IRS regulations. When speaking with our clients about the previous tax season, we discovered many were not capturing recipient consent for eDelivery before emailing their forms from Tax1099. To ensure that we continue our mission to keep customers in compliance, we’ve re-launched our recipient forms eDelivery Portal.  This updated feature allows recipients for payers under each account type (Essential, eFile Plus, Enterprise, and API) to obtain PDF copies of their forms in an easy-to-access, password-protected portal. This replaces our process of sending the attached PDF with a secure password to the recipient’s email.  

Upon login to the portal, recipients can easily obtain access not only to the current tax year, but also the two previous tax years’ forms. This change provides more value to users because the recipient can obtain the form copies without contacting the payer. It also gives users and their payers a faster, cost-effective way of delivering forms to recipients while maintaining compliance with IRS guidelines. 

Our eDelivery Portal Provides Easier Access for Recipients and Assists Payers with IRS Compliance 

When selecting an information eFiling platform, businesses should lean into a platform that can deliver these forms electronically while obtaining permission from the recipient as required by the IRS. Our eDelivery portal adheres to these guidelines by capturing consent from the recipient, allowing them access to their forms for up to three years. Per Section 4.6.2 of IRS Publication 1179, “The consent by the recipient must be made electronically in a way that shows that he or she can access the statement in the electronic format in which it will be furnished.” Per IRS requirements, our portal allows the recipient to opt out of the service at any time.  

And with our updated eDelivery system, payers can avoid IRS penalties related to late form delivery to recipients. Compliance related to the delivery of forms is important because the IRS is now closely monitoring these filings. Despite efforts from the Fiscal Responsibility Act, the United States Congress still plans to provide funding the IRS to aid in the enforcement of various tax codes with the Inflation Reduction Act of 2022

How Does the Process Work? A Brief Overview. 

The process for our eDelivery Portal is quite easy. Once a user logs into Tax1099, they will select the People dropdown tap on the lefthand side of the screen. From there, the user will select Manage Recipient, and then select their payer and select either all recipients or specific recipients. Next, the user will select Request Consent. The system will prompt confirmation for the number of requests.  

Once that is initiated, the recipient will receive an email with instructions on how to opt in for eDelivery of their forms. When the recipient clicks on the link in the email, they will follow the instructions on the page they are directed to (including details on their unique password).  

Request Consent
Request Consent

Once the recipient logs in, they will receive a pop-up that asks what they wish to do. If the recipient opts in, they will continue to use that log in with their unique password to access forms (up to three tax years). 

Consent Opt-in
Consent Opt-in
Consent Status
Consent Status

If the recipient opts out, the recipient will receive their forms through other means. That can be done automatically through the Tax1099 USPS mailing option, or users can download and mail the PDF copy to the recipient themselves. 

In addition, users will have the ability to view who opted in or rejected the request under the Consent Status column in Manage Recipient. Users can also use the sorting tool in Manage Recipient to find which recipients require other methods of delivery. A report is also available for the user to check the opt in/out status of their recipients. 

Find out more about how this works by visiting our Knowledge Base article here.  

Tax1099 Continues to Provide Cost-Effective Solutions to Information Tax Reporting 

Part of our mission at Tax1099 is to provide users of all account types with a cost-effective, IRS-compliant information return service. Our eDelivery Portal gives our clients everything they need to deliver forms electronically.  

We are always here to answer questions related to our new eDelivery Portal or anything else related to Tax1099. If you have any questions or concerns, please send an email to our team via support@tax1099.com