Questions about e-filing 1099 forms?

FAQs

Frequently Asked Questions
 

What exactly is OnlineFiletaxes.com?

Why use OnlineFileTaxes.com?

How much does it cost?

When can I start to file forms?

Do you store my credit card information?

Can I import data from my accounting software?

How do I get copies of each form for the businesses I've filed for?

How long does it take for the recipient to receive their forms?

How do I file State, City and Local forms?

I'm a tax professional and need to file for several businesses. Do I need to set up multiple accounts?

When must I submit a 1099 form to the Internal Revenue Service (IRS)?

If I miss a 1099 form deadline, what penalties will I have?

Do I need to file my forms electronically with the IRS?

Can I file for more than one client or business using my own account?

When I create my account, how do I add the TIN and names of the other companies that I need to file for?

Can I upload data, or do I have to enter it manually?

Do I need to mail printed forms to the recipients?

I have filed 1099 forms with OnlineFileTaxes.com, but I've discovered that the information I had entered was incorrect. How do I correct my 1099 forms?

Can I cancel my order at any time? If so, will that stop my forms from being e-Filed?

What is the deadline to file my forms?

I submitted my forms after January 31st. Will I be penalized for a late submission?

When does OnlineFileTaxes.com file my forms with the IRS?

When I file with OnlineFileTaxes, do you send the forms to the IRS and to the people I owe 1099 or is there something more that I need to do?

Once I file my forms on OnlineFileTaxes.com, do I need to file form 1096 or W-3?

Does OnlineFileTaxes participate in the Combined Federal/State Filing program (CF/SF)?

How do I change my email address?

Can I file prior year’s data?

How does OnlineFileTaxes protect my data?

Will I be charged for 1099 forms that are rejected by the IRS?

Can you append an import for 1099s?

Who is a Filer?

Who is a Form Recipient?

What is Recipient Statement?

What is e-Delivery of Recipient Statement?

Frequently Asked Questions about various Forms







What exactly is OnlineFiletaxes.com?

OnlineFileTaxes.com is a website for quickly filing information return forms with IRS. We offer the most cost effective way of submitting your information return forms including 1099s. You enter your data online and we e-file with the IRS and mail copies to recipients. You do not have to buy and fill paper forms. You do not have to install software. OnlineFileTaxes.com is an approved IRS e-file for Business Provider for 1099 information returns.



Why use OnlineFileTaxes.com?

OnlineFileTaxes.com has been created to simplify businesses' filing of 1099 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 form information; we’ll take care of the rest. If you have questions or comments, please Contact Us.

It’s Simple!

Even with the best software packages, you still do most of the work. Instead, send us your data and let us process, print, mail, and file for you.

You can access your data from anywhere. There are no forms to buy and stock. Free up yourself to promote your business and leave the mechanical stuff, like filing 1099, to us.



How much does it cost?

For 1099 forms, the cost is $3.50 per recipient, which includes:

E-filing with the IRS

Printing and mailing of copies to each recipient via first class mail

A PDF payer copy for your records

Email confirmation of each transaction

The ability for you to print copies for filing of the 1099-MISC and 1099-R forms to comply with State or Local filing requirements

Maintaining an account database of payer and recipient information from which you can easily populate names and addresses

Access to prior year forms

Volume pricing: We offer discounted price for bulk orders check our volume pricing here.


When can I start to file forms?

Even though most businesses will file 1099 forms in January, we usually switch to current year forms in early December each year. You can start filing right away.

The deadline to provide recipient copy is February 2nd. Please make sure you file before the due date so that we can mail recipient copies in time.


How do I pay for forms I've submitted?

We accept Visa, MasterCard, Discover or American Express. Credit card information is required when you submit your forms. The site offers real-time credit card processing.


Do you store my credit card information?

For increased security, OnlineFileTaxes.com does not store your credit card information, nor do we make it accessible on the site for future orders.


What do I do if I can't find my user id or password?

Your user id is your email. To retrieve your password, use the "Forgot Password" link on the login page. Your password will be emailed to you on the email address on file.


Can I import data from my accounting software?

Yes, you can export data from any accounting software. We provide you with a formatted Excel file. You need to fill the Excel file with the data you exported using copy and paste.


How do I get copies of each form for the businesses I've filed for?

Our service includes the mailing of an original form to the recipient for each 1099 form. You will also receive an email confirmation of the transaction.

Once the forms are submitted, you can print or save your copies in PDF format.

Log in to the system

Go to My Account

Click the 'View and Print' forms button in the Submitted Forms section


How long does it take for the recipient to receive their forms?

Forms received after January 1 and 26 are mailed on a weekly basis. Forms received between January 27 and the due date (January 31, or the next business day by 3:00 PM EST) are guaranteed to be post marked by the due day. Starting February we resume to weekly mailing. Recipients should receive their copies within 5-7 business day after mailing.

TIN Check: : If you have ordered TIN check service, we perform the TIN check before mailing recipient statements. If TIN check fails, we let you and hold the statements, till the TIN check is successful. To avoid, late penalty, around the deadline, we have to mail out all statements, even if TIN check was not successful. If we mail out statement with failed TIN check, you will have to file a correction to change the TIN. If the IRS TIN check service is not available, it may affect our ability to mail out paper statements. To avoid any late penalty, we reserve the right to mail paper statements before TIN check is complete.

E-Delivery: If you have provided us recipient’s email, we try to e-deliver their statements electronically. We wait 3 days for the recipients to accept e-delivery. If the recipients do not accept e-delivery we mail out paper copies. As we approach the deadline, and if we cannot wait for recipient’s acceptance we mail out paper statements.

If recipients’ accept e-delivery they can access their forms right after making their choice.

You can print or download your copies soon after payment. 


How do I file State, City and Local forms?

We do not e-file or mail state, city or local copies for you. Please read below a related question about the Combined Federal/State Filing program (CF/SF).

In order to comply with state, city and local requirements, you may need to print a copy of your 1099 forms and mail them to these agencies.

After you submit forms, print a State/Local copy from the "My Account" page by clicking "Print and View Forms" in the Submitted Forms section.


I'm a tax professional and need to file for several businesses. Do I need to set up multiple accounts?

No, you only need to create one account.

As you file forms with this account, the site will remember the payer/payee contact information.

When filing a form at a later date for this same payer, all you need to do is choose the payer and payee from the drop-down selection boxes on the form. All contact information will be filled in on the form.


When must I submit a 1099 form to the Internal Revenue Service (IRS)?

For the filing deadline please refer to question on due date.
Please check out filing requirements for individual forms.

Official IRS instructions for Form 1099-MISC >>
Official IRS instructions for Form 1099-INT >>
Official IRS instructions for Form 1099-DIV >>
Official IRS instructions for Form 1098 >>
Official IRS instructions for Form 1098-T >>
Official IRS instructions for Form 1099-B >>
Official IRS instructions for Form 1099-C >>
Official IRS instructions for Form 1099-R >>
Official IRS instructions for Form 1099-S >>
Official IRS instructions for Form W-2 >>

If I miss a 1099 form deadline, what penalties will I have?



If you fail to file a correct 1099 information return by the due date and you cannot show reasonable cause, then you may be subject to a penalty. Click here   for more information on penalties.


Do I need to file my forms electronically with the IRS?

Section 6011(e)(2)(A) requires filers who are required to file 250 or more information returns for any calendar year to file the returns electronically. The 250 or more requirement applies separately for each type of form and separately for original and corrected returns.
However, we encourage that you use our service to file your forms hassle-free irrespective of the number of forms. We always file all our forms electronically so that you do not have to file Copy A of the form with the IRS.


Can I file for more than one client or business using my own account?

Yes. OnlineFileTaxes allows you to enter an unlimited number of filers, and an unlimited number of associated recipients for each of those filers with your one account.


When I create my account, how do I add the TIN and names of the other companies that I need to file for?

After you create your account and confirm your email address, you will log into your account and start filling out your forms. If we already have your payers' information, you can just select the payer name from the list. You will not need to enter all of the payer information again. If, however, we do not have your payer information in our records, then you will only need to enter it once. The same is true for recipient information. We retain payer and recipient information in our records so that you don't have to key in again.


Can I upload data, or do I have to enter it manually?

With our service you can do both. You can upload information using our simple upload process. We accept comma-delimited or Excel files. For more information, view our "Data Import"   page.


Do I need to mail printed forms to the recipients?

No, OnlineFileTaxes.com does that for you.


I have filed 1099 forms with OnlineFileTaxes.com, but I've discovered that the information I had entered was incorrect. How do I correct my 1099 forms?



If you submitted a 1099 form and later discover you made an error on it, you must:

File a corrected 1099 form as soon as possible.

Furnish corrected form to the recipient.

Onlinefiletaxes.com supports filing of corrected forms with the IRS.

Please note that you can file correction form using our service, only if you have used our service to file the original form. If you filed your original form on paper or used another service provider, then you would not be able to use our service to file correction form.

You can change any information entered as long as you have not paid for our service. Once you make a payment you will not be able to make changes to the existing form.

If you discover any error after you have paid for the forms you must file a separate correction form.

Errors:

Please note that there are numerous types of errors, and in some cases, more than one transaction may be required to correct the initial error. Please contact us if you have a question regarding this.

Error Type 1:

Wrong amount reported, amount reported in wrong box or filed a 1099 form that should not have been filed. To correct this error only one corrected form must be submitted.

If you have filed a form that should not have been filed please submit a new forms with 0 amounts. Please see instructions on creating corrected form for more information.

If you have reported incorrect amount or box information then please submit a corrected form with corrected information. Please see instructions on creating corrected form for more information.

Error Type 2:

Wrong payee name or tax Id reported. To correct this error two corrected forms must be submitted.

If wrong payee name or tax Id was reported then you must file two correction forms. First, you need to file a form with 0 amounts to void the original form. Then a second form needs to be filed with correct name, tax id and correct amount. Please see instructions on creating corrected form for more information.

Error Type 3:

Following list shows the errors that cannot be corrected using our service. You must contact the IRS to fix these errors.

1. Duplicate reporting – if duplicated 1099 forms have been filed, IRS should be contacted immediately for instructions on how to avoid notices. The standard correction process will not resolve the duplicate issue.

2. Wrong payer (not recipient) name or TIN number was used. You must write a letter to the IRS containing the following information:
(a) Name and address of payer (b) Type of error (include the incorrect payer name/TIN that was reported) (c) Tax year (d) Correct Payer TIN (e) TCC (f) Type of return (g) Number of payees (h) Filing method, paper or electronic (i) Was Federal income tax withheld?

Creating corrected forms:

To learn more about how to create corrected forms click here. To create corrected forms please click here.

There might be some penalty associated with correction forms that are not filed timely. Please click here   for more information on penalties.




Can I cancel my order at any time? If so, will that stop my forms from being e-Filed?

You can cancel an order before submitting your order and paying OnlineFileTaxes.com’s fee. Once the payment is made you will not be able to cancel your order. We encourage you to thoroughly review your data before placing an order. We will not be able to process any refunds after the forms are submitted to the IRS.

If you accidentally submitted a form that should not have been filed or you have reported wrong information, and we have already submitted it to the IRS, then you will need to file a separate correction form to correct the IRS's records. For more details on how to file correction forms please check the previous answer.



What is the deadline to file my forms?

The deadline to e-file 1099 forms is March 31 while to deadline to provide recipient copies is January 31.
Form(s) 1098, 19098, 1099, 3921, 3922, 8935, and W-2G are filed on a calendar year basis. Forms 5498 are used to report amounts contributed during or after the calendar year (but no later than April 15)

Click here   for more information on filing deadlines.


I submitted my forms after January 31st. Will I be penalized for a late submission?

Paper forms are to be mailed to recipients by January 31st. If you miss this mailing date you may be subject to penalties. If you are in this situation, it is usually best to get your recipient copies mailed and have OnlineFileTaxes.com file your data electronically by the March 31st electronic filing deadline. If you have missed a deadline, please file your form as soon as possible as the penalties increase with time.

Click here   for more information on penalties associated with late filing.


When does OnlineFileTaxes.com file my forms with the IRS?

OnlineFileTaxes files your data electronically with the IRS throughout the year. However, the deadline to file electronically is March 31st. In cases where March 31st falls on a weekend or a federal holiday, the deadline is automatically extended to the next business day.

We used to e-file all our forms before mailing out paper statements, but then we noticed our clients had to file corrections after their recipients receive the forms and notice an error. To avoid that, on popular demand, we are now not e-filing our forms till a later date. Please rest assured, your forms will be e-filed within the timeline. We are now waiting for at least 10 days before e-filing from the date you submitted your forms. Typically every year the IRS closes down their e-filing system and do not open till first or second week of January. Our first filing in the year does not start till the middle of January.

We also have the ability to hold your forms until a certain date (before e-file deadline). If you want us to hold you forms till a certain date, please let us know.


When I file with OnlineFileTaxes, do you send the forms to the IRS and to the people I owe 1099 or is there something more that I need to do?

When you file with us, we print and mail the forms to your recipients and we electronically file your forms with the IRS. You need to print the forms for your records or mail to the appropriate state if applicable.

Our electronic filing eliminates the need to submit paper documents to the IRS. CAUTION: Do not send Copy A of the paper forms to IRS/IRB for any forms filed electronically. This may result in duplicate filing and erroneous notices could be generated.


Once I file my forms on OnlineFileTaxes.com, do I need to file form 1096 or W-3?

Forms 1096 and W-3 are not required because we file electronically. Forms 1096 and W-3 are for paper filing only.


Does OnlineFileTaxes participate in the Combined Federal/State Filing program (CF/SF)?

We do participate in the Combined Federal/State Filing program (CF/SF). Under this program the IRS transmits relevant 1099 information to the participating states. Separate reporting to those states is not required. The following information returns (that we support) may be filed under the Combined Federal/State Filing Program:

Form 1099-B Proceeds from Broker and Barter Exchange Transactions
Form 1099-DIV Dividends and Distributions
Form 1099-G Certain Government Payments
Form 1099-INT Interest Income
Form 1099-K Payment Card and Third Party Network Transactions
Form 1099-MISC Miscellaneous Income
Form 1099-OID Original Issue Discount
Form 1099-PATR Taxable Distributions Received From Cooperatives
Form 1099-R Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc.
Form 5498 IRA Contribution Information

Following is a list of states currently participating in this program:
Alabama Kansas Nebraska
Arizona Louisiana New Jersey
Arkansas Maine New Mexico
California Maryland North Carolina
Colorado Massachusetts North Dakota
Connecticut Michigan Ohio
Delaware Minnesota South Carolina
Georgia Mississippi Vermont
Hawaii Missouri Virginia
Idaho Montana Wisconsin
Indiana


Each state's filing requirements are subject to change by the state. It is the payer's responsibility to contact the participating states to verify their criteria.

If your state or the form you are submitting is not listed here, it is your responsibility to file with your respective state.
SSA and IRS do not transfer W-2 data to states. You will need to file with the State and Local Tax agencies separately.

How do I change my email address?

Use the Contact Us page to request that we change the email address associated with your account. Please include your new email address in your request.


Can I file prior year’s data?

Yes, you can file previous year forms using our service. But please be aware that the IRS might impose some penalties. As a filer you are responsible for any such penalty.


How does OnlineFileTaxes protect my data?

We use the information you provided to us, only for the purpose of processing your information return. We do NOT and WILL NEVER sell or share your information with anyone unless required by law, even if you no longer use our services. Please refer to our Privacy Policy and rest assured that your data is in good hands.


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 and how to correct and resubmit the forms.


Can you append an import for 1099s?

Yes. OnlineFileTaxes automatically appends any non-duplicate 1099s when batch importing. Please make sure that you do not upload duplicate data.



Who is a Filer?

Filer means the person or organization required by law to file information return form with the IRS. A filer may be a payer, creditor, recipient of mortgage or student loan interest payments, educational institution, broker, barter exchange, person reporting real estate transactions; trustee or issuer of any educational savings account, individual retirement arrangement or medical savings account; lender who acquires an interest in secured property or who has reason to know that the property has been abandoned, or certain donees of motor vehicles, boats, and airplanes..



Who is a Form Recipient?

Form recipient means the person to whom you are required by law to furnish a copy of the official form or information statement. The form recipient may be referred to by different names on various Forms 1099 and related forms (“borrower,” “debtor,” “donor,” “employee,” “insured,” “participant,” “payer/borrower,” “policyholder,” “student,” “transferor,” or, in the case of Form W-2G, the “winner”).



What is Recipient Statement?

Recipient statement means a paper statement of the information reported on an information return form. This statement must be furnished to a person (form recipient), on paper or electronically by the due date.



What is e-Delivery of Recipient Statement?

The IRS authorizes businesses to furnish an electronic copy to recipient of form 1099s, instead of a paper copy. If a business is required to furnish a written statement (Copy B) to a recipient, then it may furnish the statement electronically instead of on paper.
An electronic recipient statement is a statement provided to the recipient via email or delivered through a web interface, where the recipient can go to a web site and download the statement. This helps businesses avoid the need to mail a paper copy to the recipient.  
IRS guidelines state that, a recipient should give his/her consent before an electronic statement is delivered, otherwise a paper copy must be provided. Click here for more information about e-Delivery.



Frequently Asked Questions about various Forms

Frequently Asked Questions about Form 1099-MISC



Do you have a question that is not answered here? If so, go to the Contact Us   page and let us know.