The IRS tax rules are dynamic and complex, making it difficult for filers and tax professionals to address the increasing complexity. A modern tax compliance platform like Taxseer can help gain an edge while greatly increasing efficiency and tax compliance. Taxseer provides a free W-9 portal to vendors for submission of TINs, user-friendly online forms that mimic the IRS 1099 paper form, and a validation engine that ensures all entries pass the IRS validations to avoid rejections. One of the significant changes from the Tax Year 2021 is the introduction of Form 1099 NEC Online for easy reporting of nonemployee compensation and eliminating confusion over the filing deadline. Taxseer has updated its eFile platform to include the new 1099 NEC Form Online and the updated Form 1099 MISC.
The due dates for filing all 1099 forms with the IRS have been shifted from 31st March to 1st February for the tax year 2021. It is a busy time for all businesses to gather the required information to file all 1099 forms, including the newly added 1099-NEC Form Online (Non-Employee Compensation). There is a clear distinction between the Form 1099s and W-2s and only full-time employees get the W-2s. Any wrong filing of 1099s or W-2s could lead to IRS penalty and Taxseer will help you with the following checklist to e-file 1099 forms with the IRS.
IRS Form 1099 eFile Checklist for the Tax Year 2021
The following checklist will make sure that you have all the required information before you start filing and submit the 1099 electronic file to the IRS:
- Review your vendor list: As per IRS rules, any business should have the vendor’s TIN and contact information before you start doing business with them. Review your vendor’s list to make sure that this information is available in your database.
- Send Electronic W-9 to the vendors through the Taxseer platform: If you have the vendor’s TIN missing then use the Taxseer’s free W-9 portal to send the W-9 request to the vendors. Taxseer will send the email with a custom link to vendors to connect to the portal. This electronic method of W-9 submission vastly improves the time to get back the TIN from the vendors as well as maintains better compliance with the IRS rules.
- Receive & Review the vendor’s TIN: Recipients can submit the TIN through the online W-9 form in the portal and it will be directly updated in the recipient/payee database. Review the TIN before you start filing the 1099s.
- Fill out the online 1099 forms on the Taxseer platform: Taxseer provides very user-friendly online forms that mimic the IRS 1099 paper form to avoid any confusion when filers move from paper filing to the electronic option. The form filing is guided by the tax wizard to ensure that filers can file the 1099 forms correctly and the validation engine makes sure that all entries pass the IRS validations to avoid rejections.
One of the important changes from the Tax Year 2021 is the introduction of Form 1099 NEC Online for easy reporting of nonemployee compensation and eliminating confusion over the filing deadline. The IRS has moved all nonemployee compensation (NEC) income reporting from the traditional Form 1099 MISC Online Box 7 to the new form 1099-NEC. All other boxes to report different income types on the traditional Form 1099-MISC still remain the same. There is some shuffling of the boxes on the form 1099 MISC to account for Box 7 which was removed. Other than this, Form 1099-MISC is mostly the same and can be used to report income types such as rent, other income, or royalties.
Form 1099-NEC has Payer’s information (Name, Address, and TIN), Receiver’s information (Name, Address, and TIN), and the boxes to report Box 1 (non-employee compensation), Box 4 (Federal Tax withheld), and Boxes 5-7 (State information). Use Box 1 to enter the Non-Employee Compensation for $600 or more. Use Box 4 to enter the backup withholding information.
You can view the updates to the 2021 General Instructions for Certain Information Returns (irs.gov) and the General Instructions for Certain Information Returns (2021) | Internal Revenue Service (irs.gov) here. For starters, learn the 5 Easy Steps to e-File Form 1099-NEC Online through Taxseer.
Taxseer has updated the eFile platform to include the new 1099 NEC Form Online as well as updated the Form 1099 MISC that has been impacted by the changes in the non-employee compensation reporting changes. A New Excel file upload option has been added to upload the form 1099 NEC through bulk upload. The bulk upload feature is used by filers having 20 or more 1099 NECs and it vastly reduces the filing effort for medium and large businesses.
- Review & submit the online 1099 forms: Taxseer provides the option to review all final forms with the edit option to make sure that all forms are filled correctly. The reviewed forms are added to the shopping cart so that all 1099 Forms can be submitted together.
- Mail the recipient copies to the recipients: Taxseer provides three service types to the filers for sending the recipient copies during the forms checkout from the shopping cart.
- eFile only: This option will only eFile the submitted forms with the IRS system. However, Taxseer provides a single PDF file for all recipient copies in the order so that the filer can easily print and mail the forms to the recipients.
- EFile & Mail: This option will eFile the forms with the IRS system as well as mail the recipient copies through a proven mail service provider for an additional charge of $1.25 / form. This is the preferred service opted for by most of the filers as the filing and mailing responsibility is handled by the Taxseer.
- EFile & Recipient portal: This option will eFile the form with the IRS system as well as send an email with the link to the online forms to the recipients. A hint for the PIN is sent along with the link and this works as the password to view the recipient copy online. Recipients can download and print the form by themselves.
- Monitor the IRS filing status: Taxseer dashboard helps filers monitor the form filing statuses with the IRS and act for any rejections.
- Submit the online 1099 Corrections for any filing errors: Filers can submit the form 1099 correction forms for any filings that have been incorrectly submitted.
We hope that the form 1099 filing checklist will help you submit the correct form before the IRS due date to remain compliant with the IRS tax rules and avoid penalties. We will maintain your submitted file online for 5 years at no additional cost.
In conclusion
The IRS tax rules are complex and dynamic, making it challenging for businesses to comply with them. Taxseer offers a modern tax compliance platform that simplifies the process and improves efficiency. With a user-friendly online form that mimics the IRS 1099 paper form and a validation engine that ensures all entries pass the IRS validations to avoid rejections, Taxseer offers a free W-9 portal to vendors for the submission of TINs.
The introduction of Form 1099 NEC Online and the shift of the deadline to 1st February for filing all 1099 forms with the IRS have made it crucial for businesses to gather the required information. Taxseer has updated its eFile platform to include the new 1099 NEC Form Online and the updated Form 1099 MISC. Businesses can follow the IRS Form 1099 eFile Checklist for the Tax Year 2021 provided by Taxseer to ensure they have all the necessary information before filing the 1099 electronic file. Taxseer provides an option to review all final forms with an edit option to ensure all forms are filled correctly before submission. Overall, Taxseer greatly simplifies the process and helps businesses maintain better compliance with the IRS rules.
FAQ
What is Taxseer?
Taxseer is a modern tax compliance platform that helps businesses and tax professionals in efficiently filing their taxes.
What are the features of Taxseer?
Taxseer provides a free W-9 portal, user-friendly online forms, and a validation engine that ensures all entries pass the IRS validations to avoid rejections.
What is the 1099 NEC Form Online?
The 1099 NEC Form Online is a new IRS form for reporting nonemployee compensation, introduced in the tax year 2021.
What is the deadline for filing 1099 forms in 2021?
The due date for filing all 1099 forms with the IRS has been shifted from March 31 to February 1 for the tax year 2021.
What is the difference between Form 1099 and W-2?
Only full-time employees receive W-2 forms, while Form 1099 is used to report payments to independent contractors, self-employed individuals, and other non-employee compensation.
What is the importance of vendor list review?
Reviewing the vendor list ensures that a business has the vendor’s TIN and contact information before doing business with them.
How does Taxseer’s W-9 portal work?
Taxseer’s W-9 portal allows filers to send electronic W-9 requests to vendors. Vendors can submit the TIN through the online W-9 form, which is directly updated in the recipient/payee database.
What is the purpose of the 1099 form validation engine?
The validation engine ensures that all entries pass the IRS validations to avoid rejections.
What is the bulk upload feature in Taxseer?
The bulk upload feature allows filers having 20 or more 1099 NECs to upload the form 1099 NEC through bulk upload, reducing filing effort for medium and large businesses.
What is the final step to complete the 1099 filing using Taxseer?
The final step is to review all the final forms with the edit option to make sure that all forms are filled correctly and submit them together.