Every year businesses have to file 1099 misc forms with the IRS to report Incomes they have paid to independent contractors/individuals for services rendered by them. 1099 Misc forms are basically filed for those individuals who are not part of the company, yet have provided their services and thus have received $600 and above from the company in form of compensation.
Traditionally, form 1099 misc was filed by businesses using the paper filing method where you would have to manually enter all the data and submit it to the IRS along with form 1096. Paper filing method can turn out to be quite cumbersome and painful if there are hundreds of 1099 misc forms to be filed. Moreover, paper filing method can also turn out to be very costly as you would have to spend on postal stamps and mailing services. Not only that, but have you ever realized how much paper is wasted to file 1099 forms on paper. Millions of paper is wasted each year to file 1099 forms be it a new form or corrected form. Do you know what it means to waste so much paper? Wasting paper means we are wasting our environment. Thousands and thousands of trees are sacrificed just to produce few tons of paper. We eliminate trees, we eliminate our environment.
Hence in order to eradicate the complexities arising out of paper filing method for 1099 forms, IRS came up with the best solution ever; EFILE method of paper filing. Electronic method of paper filing is by far the most suitable solution to file 1099 forms. Efile method has not only helped to solve the problem of filing 1099 forms quickly but it’s one of the safest and easiest solutions for 1099 filing. On top of that, no paper usage means nil environmental damage. Moreover, if you efile 1099 misc form, it takes minutes to fill your form and submit it to the IRS. IRS receives your submission within the same day and sends you IRS acceptance confirmation within 24 hours.
Now, there are 2 methods to efile 1099 misc forms. First method would be to efile 1099 misc form directly with the IRS FIRE system and the second step would be to efile 1099 misc form through an IRS authorized efile service provider.
STEPS TO EFILE 1099 MISC WITH THE FIRE SYSTEM:
- Purchase and install a software program that will create and transmit 1099 forms in the proper electronic format.
- Request a transmitter control code (TCC) by filling out IRS Form 4419, “Application for Filing Information Returns Electronically.” You will need to provide basic information such as your business name and address. You also must include your Employer Identification Number (EIN). If you do not have an EIN, you must obtain one before submitting Form 4419.
- Mail or fax the form to the IRS at least 30 days before the deadline for filing 1099s. The IRS will send your 5-character transmitter control code by mail once the application is approved.
- Create an account on the FIRE system. You will enter your company name, company address, company phone number, contact name and email address. You can create the account before you get your transmitter control code.
- Prepare your 1099 information for transmittal using the features of your software program.
- Transmit your 1099 forms to the FIRE system once you have received your transmitter control code and entered it into your software program.
STEPS TO EFILE 1099 MISC WITH AN EFILE SERVICE PROVIDER
- Select your preferred IRS certified efile provider for 1099 misc form filing
- Register with the service provider
- Select the 1099 misc form from the list of 1099 forms service offered by the service provider
- Fill in your 1099 misc information.
- Click on the Submit to IRS button and your returns are transmitted to the IRS. A confirmation email will be sent to you about the status of your submission
And that’s it……
Now, which one do you think is the easiest step of all? Second one, isn’t it? You don’t have to purchase any software; you don’t have to fill any 4419 form; you don’t have to go through any cumbersome steps. Using an efile service provider is so simple because you just have to fill out your information and they do the rest. They transmit your information to the IRS through the FIRE system and send you IRS acceptance e-mail. There are some providers such as 1099online.com who even print and mail 1099 misc forms to the recipients. However, before selecting on a service provider make sure they are IRS approved and have an IRS authorized logo on their website.
