efiling 1099s

[JimTaxes]

with the new lower efile mandate, looking at sites that can efile without using the IRS system (still cannot create an account there) but my question is has anyone used efilemyforms.com and if so, do you like it?

[Lynn EA USTCP in Louisiana]

I efile the 1099’s through ATX.  I have heard comments from others who use efilemyforms and are satisfied 

[JohnH]

I’ve been using 1099Express for several years (after a client began to exceed 250 forms per year). Their combined package (e-file plus Print & Mail) is outstanding, although it’s also possible to choose only the e-file option if you like stuffing envelopes and mailing by hand 

 

Their eVerify service is also reasonably priced.  A great resource for avoiding the hassle of  B notices. Fine company with great customer service.  

Here’s their link if you want to check them out  

https://1099express.com/

[Lee B]

I have used Online File Taxes for a number of years. It's been trouble free and I am very satisfied.

https://www.onlinefiletaxes.com/default.aspx

[Catherine]

On 11/22/2023 at 7:52 AM, JimTaxes said:

with the new lower efile mandate, looking at sites that can efile without using the IRS system (still cannot create an account there) but my question is has anyone used efilemyforms.com and if so, do you like it?

I have used it for years and like it a lot. Send a PM if you want details, but in general I've found it very easy to use. PDF copies are now available instantly, too. Years ago when I first started using them the PDFs were available the next day.

[JimTaxes]

@Catherine thanks!  i have been experimenting with some test filers and recipients and think I understand how it works. when i started doing some test cases 2022 comes up.. do you know when 2023 will be available?

[Randall]

What is the new threshold?  1099s?  W2s?  I only do a very few.  I've just been prepareing printed ones and letting client mail.

 

[JimTaxes]

10 or more returns in a calendar year beginning in 2024, tax year 2023.

[Medlin Software, Dennis]

In some cases (certain org types), efile is required no matter the number of returns. The biggest change is not the threshold, but using the aggregate of the affected forms, rather than a threshold of each form separately.

[Randall]

On 11/29/2023 at 10:47 AM, JimTaxes said:

10 or more returns in a calendar year beginning in 2024, tax year 2023.

Are you talking about tax returns (1040s, 1065s, 1120Ss, etc)?  Yes, I efile those.  I was asking about W2s & 1099s?

[Medlin Software, Dennis]

6 minutes ago, Randall said:

Are you talking about tax returns (1040s, 1065s, 1120Ss, etc)?  Yes, I efile those.  I was asking about W2s & 1099s?

Check out the notice in the federal register for the actual rule text.  Online "experts" often skip over some parts, or are maybe even AI generated pieces. What is most often missed in general public discussions is the entity type can also be a trigger no matter the quantity of filings.  And the often discussed change from counting per form type to the aggregate of the specific types.

The reality is, one must treat it as efile being required unless they are sure they meet the exceptions. If in doubt, efile.

[JimTaxes]

referring to "information returns" 1099s, w-2s etc

[Medlin Software, Dennis]

48 minutes ago, JimTaxes said:

referring to "information returns" 1099s, w-2s etc

In case someone wants to read the details directly:

https://www.federalregister.gov/documents/2023/02/23/2023-03710/electronic-filing-requirements-for-specified-returns-and-other-documents

"T.D. 9972 affects filers of partnership returns, corporate income tax returns, unrelated business income tax returns, withholding tax returns, certain information returns, registration statements, disclosure statements, notifications, actuarial reports and certain excise tax returns. The final regulations reflect changes made by the Taxpayer First Act (TFA) to increase e-filing without undue hardship on taxpayers."

 

[Lee B]

"Regulations section 301.6011-2 was amended by Treasury Decision 9972, published February 23, 2023, which lowers the threshold to 10 for which employers must file certain information returns electronically, including Forms W-2, W-2AS, W-2GU, W-2VI, and Form 499R-2/W-2PR (collectively Forms W-2), but not Form W-2CM. To determine whether they must file information returns electronically, employers must add together the number of information returns (see the list below) and the number of Forms W-2 they must file in a calendar year. If the total is at least 10 returns, they must file them all electronically. The new threshold is effective for information returns required to be filed in calendar years beginning with 2024. The new rules apply to tax year 2023 Forms W-2 because they are required to be filed by January 31, 2024.

The following information return forms must be added together for this purpose: Form 1042-S, the Form 1094 series, Form 1095-B, Form 1095-C, Form 1097-BTC, Form 1098, Form 1098-C, Form 1098-E, Form 1098-Q, Form 1098-T, the Form 1099 series, Form 3921, Form 3922, the Form 5498 series, Form 8027, and Form W-2G."

 

[Medlin Software, Dennis]

There are some who have or will file 2023 W2 before 2024 (seasonal or end of entity, for instance) so be careful about saying it applies to any particular form, instead of the designated forms filed after Dec 31, 2023.

Tjere are a few outlier situations which could trigger efile even below 10 subject and aggregate items.

The whole process could be cleaned up by offering a 94x free self efile, which is not available at present (and likely why the 94x appears to be excepted). A good example is the IRIS 1099 for batches of up to 100 forms. But, the 94x are a constant state of flux, and currently a cluster you know what. Changes for no good reason, mismatch with “cousin” forms, silly text changes, and so on. The 94x series makes the case there is a department of folks whose positions rely on changes every year, even if no changes in the items reported, to justify their budget. Or there are a bunch of folks who keep the 94x a mess as they somehow profit or expect to profit by the mess. 944 is a prime example of a form not needed but forced on some who were fine with 4 941’s. 

[Catherine]

On 11/29/2023 at 8:53 AM, JimTaxes said:

@Catherine thanks!  i have been experimenting with some test filers and recipients and think I understand how it works. when i started doing some test cases 2022 comes up.. do you know when 2023 will be available?

Probably on January 2nd. I've never had a problem filing 1099s or W2s very early in January.

[JimTaxes]

On 12/2/2023 at 10:29 PM, Catherine said:

Probably on January 2nd. I've never had a problem filing 1099s or W2s very early in January.

let's say working on ABC Inc's 1099s.. say they have three 1099-NEC's.  Do you check out those three 1099's at that time or do you check out multiple payors at one time?

[Catherine]

On 12/4/2023 at 6:37 AM, JimTaxes said:

let's say working on ABC Inc's 1099s.. say they have three 1099-NEC's.  Do you check out those three 1099's at that time or do you check out multiple payors at one time?

You can do either. Each 1099 gets added to your cart, and you can check out at once with all of them. Got info for two, and that customer needs to confirm the ssn/ein or amount for the last contractor? Get the two done, go back later for the third.

[JimTaxes]

1 hour ago, Catherine said:

You can do either. Each 1099 gets added to your cart, and you can check out at once with all of them. Got info for two, and that customer needs to confirm the ssn/ein or amount for the last contractor? Get the two done, go back later for the third.

thanks.. I am ready for January!

[JimTaxes]

2 hours ago, Catherine said:

You can do either. Each 1099 gets added to your cart, and you can check out at once with all of them. Got info for two, and that customer needs to confirm the ssn/ein or amount for the last contractor? Get the two done, go back later for the third.

one last question.. if i am working on a single payor.. i check out two 1099 NECs.. then the next day the client gives me one more recipient. i check out.. does that mess up the 1096 or is the 1096 a non-issue?

[Medlin Software, Dennis]

8 minutes ago, JimTaxes said:

one last question.. if i am working on a single payor.. i check out two 1099 NECs.. then the next day the client gives me one more recipient. i check out.. does that mess up the 1096 or is the 1096 a non-issue?

I cannot speak specifically to your question.  But, the IRS, while suggesting they prefer one set of forms from an EIN, had zero issue and zero regulations against multiple forms from one EIN.  The example I can speak on is 941.  Many employers use (for some stupid reason) the same EIN for more than one location/store.  It is common to send 941 forms by location/store, rather than have to compile into one form.  (The normal suggestion, for those who seek professional advice, is to keep each location separate to protect one from any other, for bookkeeping, and to make it easy to close/sell one location.)

So I strongly suspect one EIN can send any number of 1099 "sets".  I wonder if there is even a 1096, or is it inferred by addition?  The CSV submission in IRS does not require any sort of total that I have seenm, since it is easy for the software reading the CSV to add the forms together.

[Lee B]

Form 1096 is only used when you paper file the 1099s.

[JimTaxes]

14 minutes ago, Lee B said:

Form 1096 is only used when you paper file the 1099s.

thanks!

[Medlin Software, Dennis]

Another clue is since the IRS csv is limited to 100 forms, but is not restricted to only 100 forms per EIN, multiple submissions is not an issue.  On another note, I would add a late fee of some sort for those who bring in data after saying it is all there.  Something someone here long ago suggested to me (along with firing at least one customer every year).

[Randall]

19 hours ago, JimTaxes said:

thanks.. I am ready for January!

Ha.  I can wait.  Enjoying my slack time this month.