subject: E-file 1099 : Important Details That Are Worth Knowing [print this page] Ever since the IRS assented to use of E-file people have been enjoying the benefits of using a fast, accurate, easy and convenient way to file their tax forms. The efficiency of this system can be seen in the increasing number of people using it, with the IRS putting it at an impressive 80%. The system allows you to e-file form 1099 in its various varieties and these include the A, B, C, DIV, G, H, LTC, OID, R and Misc. However, many first-timers find it very intimidating to use e-file 1099 software but it does not have to be the case as there are lots of websites that help to make the process a walk in the park.
Two options exist when you want to e-file 1099 or w-2, and these are to download/buy the software or opting for a firm that offers the software as a service (SaaS). The latter method is proving to be the option of choice because you don't have to spend money for software that you will use only once a year, and secondly, it offers much convenience whereby you just supply your tax information and the service provider finishes off the process with IRS. This system has been well thought out in that the service provider supplies the user with copies of the transaction for purposes of reference, records keeping, submission to government authorities and mailing a copy of the document to the recipient of the 1099 or W-2. In addition, the user is always e-mailed a confirmation to confirm a successful transaction or in case of any mishaps.
With the success of e-file 1099 systems the IRS now requires that organizations which need to file over 250 forms do so online, and for good reason. Initially the returns were being mailed as paper forms; for 250 returns it is not only a bulky affair but also an expensive one considering the postage costs.
People are always encouraged to remember that by choosing to file tax forms online they are opting for the best way to ascertain that they have made accurate returns since compared to counterchecking your calculations manually, the software can do this on your behalf and with greater precision at that. You can also rely on these systems because they are usually the first to get updated with the latest IRS amendments, and whose release may otherwise not reach you in good time.
However, the need to work with an IRS-approved website cannot be overemphasized if the scary tales of identity theft are anything to go by. Therefore, for every website which claims to offer e-file 1099 services that you may want to use, you need countercheck its validity with the IRS.
