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Tax1099 vs Tax2efile: Best 1099 Filing Option for Contractors in 2026

Tax seasons are always the busiest time for every business. On one hand, they manage their system while on the other, they need to file heaps of tax forms and pay returns. And they also want to make sure that they don’t make mistakes or miss any deadlines (atleast not due to negligence).

That’s when eFiling platforms like Tax1099 and Tax2efile emerge as the two popular choices among the businesses. Both the platforms are IRS-approved and offer a range of tax filing features.

But which one is better for your needs? Read this guide on “Tax1099 vs Tax2efile” as we compare the two based on features, pricing, pros and cons. By the end, you will be able to decide a clear winner according to your needs.

About Tax1099

Tax1099 is powered by Zenwork and is an IRS-authorized eFiing system. It is ideal for marketplaces, financial institutions, casinos, construction and payment businesses who are seeking not only automation but also robust controls (team & workflow management).

There are alot of premium functionalities in this platform. For instance, it covers a range of tax forms, wage forms, and even payroll forms supporting both federal and state filings.

Core Capabilities of Tax1099, include:

  • E-file 1099 forms with corrections. Also get access to a broad range of forms (1098, W-2, 94X, 1042-S) for consolidated reporting at one place.
  • Upload data in bulk via integrations, CSV or Excel, secure SFTP, and REST API.
  • Quick TIN/name and USPS address checks, as well as in-built duplicate data detection.
  • You get a secured e-delivery portal to view or download the recipient copies and an optional print-and-mail service.
  • Strong security with role-based access, MFA/SSO, audit logs, and a centralized dashboard.

The platform offers volume-based tiered pricing for 1099 e-filing and goes as low as $0.68 per form. You can start the filing process without any upfront fee with Tax1099’s Essential Plan.

About Tax2efile

Tax2efile is another IRS authorized service. It covers e-filing for 1099, 1098, 2290, and business extensions. It is ideal for small businesses looking for easy to use solutions without the need for much of a learning curve.

Key features:

  • Supports multiple IRS forms, including 1099, 2290, 990-N/990-EZ and extensions.
  • You get a single account with unlimited filing options.
  • Email, phone, and chat support (English & Spanish) for dedicated assistance.
  • Their mobile app is available to file on the go.
  • Bulk upload data and get heavy discounts for high-volume filers.

Tax1099 vs Tax2eFile: Key Differences

Feature Tax1099 Tax2efile
IRS Authorization Yes, supports federal, state, and SSA filings Yes. Supports federal filing
Form Coverage 1099s, W-2s, ACA (1095-C/1094-C), 1098, 94X, 1042-S and more. Also supports both federal & state filings of 1099s, W-2s, ACA, and payroll forms. 1099 series, 1098s, 2290, 7004/4868 extensions, 990-N/EZ, 1040 filings
Integrations QuickBooks, Xero, BILL, API, Excel/CSV Bulk uploads, limited integrations
Compliance Tools Real-time TIN match, USPS address validation, rejection handling Basic error checks, limited validation
Delivery Options Print & mail, secure eDelivery, PDF download Email/PDF, some print & mail
Security 256-bit encryption, two-factor authentication, audit trails 256-bit SSL encryption
Pricing Tiered plans, transparent add-ons, volume discounts Per-form pricing, bulk discounts
Support Live chat, email, knowledge base, rejection handling Phone chat, email support

Tax1099 vs Tax2efile: Pros and Cons

Tax1099 Pros

  • It does not matter if you have small batches or a huge volume of forms; it scales perfectly with clear status updates.
  • Less manual work for you because of deep automation and 12+ no-code integrations.
  • 24/7 AI tax assistance that assists users with IRS-backed reporting answers and guides every step of the filing process.
  • Track and view status updates from a centralized dashboard.

Tax1099 Cons

  • The only drawback is its wide feature set. That is why it can take some initial setup, planning, and learning curves.

Tax2efile Pros

  • It is ideal for small businesses with low volume needs that need simpler guided filing.
  • You will get discounts for high-volume bulk filing.
  • Support for additional forms like Form 2290 and extensions.
  • USA based live chat support from tax professionals.

Tax2efile Cons

  • It lacks extensive integration with accounting tools.
  • There are limited compliance solutions and a lack of error-prevention guides.
  • The automation feature is limited for the contractors with growing business.

Why Tax1099 Stands Out?

Tax1099 outpowers Tax2efile for a plethora of reasons. Here is why we chose the former above latter:

Built for Contractors

Tax1099 is best for independent freelancers, agencies, and subcontractors. There is no learning curve, and it takes a few minutes to file.

Powerful Integrations

Tax1099 integrates with some top third-party accounting tools like QuickBooks, Xero, and BILL. Filers can quickly pull data from the tool and file.

Compliance-Ready

Tax1099 enhances compliance with real-time TIN match and USPS address validation built into the workflow. Thus, payers can reduce rejection before final submission.

Flexible Filing and Delivery

Tax1099 supports all channels: print & mail, secure eDelivery, and downloadable PDFs. It tracks these deliveries and provides proof of mailing and recipient access logs.

Scalability

From 10 vendors to 10,000, Tax1099 scales without switching platforms. Teams can manage multiple EINs and clients from one dashboard.

Transparent Pricing and Support

Tax1099 is free to use. Plus, there are no hidden costs.

You will get clear per-form pricing with optional add-ons like TIN match or print & mail shown upfront.

FAQs

1. Are both providers IRS-authorized?

Yes. Both Tax1099 and Tax2efile are IRS-authorized e-file providers.

2. Which platform best reduces IRS rejections?

Tax1099. It offers features like real-time TIN matching, USPS address validation, and rejection workflows.

3. Which offers stronger accounting integrations?

Tax1099. You will get native integration to QuickBooks (Online & Desktop), Xero, BILL, plus API and CSV/Excel options. Tax2efile only offers bulk uploads with fewer native integrations

4. Is state filing supported?

Tax1099 supports state filing alongside federal (and SSA where applicable). Tax2efile focuses on federal filings.

5. How are recipient copies delivered?

Tax1099 provides print-and-mail, secure eDelivery, and PDF downloads. Tax2efile offers email/PDF delivery and some print-and-mail options.

6. How do pricing and scalability compare?

Tax1099 uses tiered pricing with clear add-ons and volume discounts. Tax2efile uses per-form pricing with bulk discounts, with fewer automation and team features.

Conclusion

Based on the comparison, Tax1099 emerges as a clear winner. Tax1099 works for payers wanting enterprise controls without complexity. It combines robust validation, flexible imports (CSV, SFTP, API), and efficient recipient delivery. Meanwhile, Tax2efile offers a fast and simple path for efiling.

If you are looking for a robust and affordable solution, choose Tax1099 and start with your first eFiling today.