Frequently Asked Questions (FAQs)
Why use 1099reporter to file my 1099 forms?
1099reporter has been created to help small business owners simplify the filing their 1099 MISC forms. Our simple end-to-end online solution eliminates the need for printing on preprinted forms, stamps, envelopes, and the general confusion associated with filing with paper returns. There is no software to download and no forms to purchase. Simply register with us and begin entering your 1099 MISC form information; we’ll take care of the rest. If you have questions or comments, please contact us.
When must I submit a 1099 form to the Internal Revenue Service (IRS)?
If you paid $600 or more in rents, services, contractors, or other payments of income, then the IRS requires a 1099 MISC form issuance. We suggest you file a 1099 MISC form for contractors below the $600 requirement as well, because those contractors are still required to pay taxes on that money when filing their 1040.
If I miss a 1099 form deadline, what penalties will I have?
The IRS uses a complex formula to determine exact penalties. However, filing a 1099 MISC Form within 30 days of the deadline limits the penalty to $15 per form. Thirty-one days past the deadline and before August 1st has a maximum penalty of $30 per form. If filed after August 1st or not filed at all, the IRS will charge you $50 per form. Filing your late 1099 MISC Forms as soon as possible will minimize penalties.
When will my 1099 forms be electronically filed with the IRS?
1099reporter will electronically file your 2008 1099 MISC forms with the IRS before the March 31st electronic filing deadline. If March 31st falls on a weekend or federal holiday, the deadline will be moved to the following business day.
I thought the IRS also required a Form 1096 Transmittal. Will 1099reporter file my 1096 Transmittal as well?
Yes. Because 1099reporter electronically files all 1099 MISC forms, Form 1096 Transmittal is not separately required by the IRS. Combined Federal/State Filing Program (CFSFP) Form 6847 authorizes the IRS to forward the information to the State revenue agencies.
Does 1099reporter participate in the Combined Federal/State Filing Program (CFSFP)?
Yes. However, you must manually file CFSFP Form 6847 with the IRS to take advantage of the program. Check out our article on the CFSFP for more information.
How does 1099reporter protect my data?
With over 30 years of combined experience developing highly secure web-based systems for Fortune 500 companies and the Department of Defense, our development team has taken numerous precautions to ensure your data is heavily protected. We use 128-bit encryption for all communication with you. 256-bit encryption protects your data when we send it to the IRS. We’ve also been independently certified by online security leaders such as Network Solutions, etc.
Will I be charged for 1099 forms that are rejected by the IRS?
Since we incur the costs of processing the forms, we are unable to refund any charges. We provide several layers of checks to ensure your IRS 1099 MISC forms meet the highest possible quality standards prior to sending them to the IRS. If we miss something and the IRS rejects your form, we will send you an email explaining why the IRS rejected your 1099 MISC form.
I made a mistake when filling out my 1099 forms. Can you stop the form from being submitted to the IRS?
Due to the nature of the electronic transmission at 1099reporter, we cannot alter or stop the transmission of forms once they have been submitted. All forms submitted through 1099reporter will be fully processed.
If errors were made during submission of any 1099 forms, correct the form(s) using our free correction process and resubmit the 1099 forms through our service.
How do I make corrections to 1099 forms I have already submitted for filing?
An electronic correction process will be available through 1099reporter in January 2009. Free corrections will be available to all forms delivered via email for three years! Forms that must be reprinted and mailed to the recipients will be available at the same low $3.39 price! More information will be available soon.