1099 Preparation

In order to file your 1099s, make sure to have any necessary W-9 forms for any vendors for whom you paid more than $600 for a service using cash, check, ACH transfer or any other direct means (credit card and Venmo/Zelle payments do not qualify). Please also try to enter transactions and reconcile all bank accounts as soon as possible so the information for the year is complete. Beginning in 2024, recipient mailing fees have increased significantly in our processing platform as well as QuickBooks Online. To reduce your 1099 processing fees, we suggest electronic sending of recipient 1099 copies. We also suggest TIN matching all of your recipients using the IRS TIN Matching program as we have noticed the IRS assessing penalties for incorrect filings over the past couple of years.

If HTB files your 1099s:

The deadline to file 1099s is January 31, 2025. We cannot guarantee any information provided after January 26th will be filed in time, and as such, may be subject to late fees and penalties. Information needed includes W9s, amounts paid, and email addresses for recipients. We will be performing TIN Matches on all recipients for our clients in order to reduce any penalties assessed on incorrect filings.

If you wish to file your own 1099’s, here are a few helpful resources:

Information Returns Intake System (IRIS)
The Information Returns Intake System, or IRIS, is a free web-based filing system where clients can e-file Forms 1099, 1098, and W-2G for tax year 2024 and later. To use the IRIS Taxpayer Portal clients must apply for a 5-digit IRIS Transmitter Control Code (TCC) which they can then use to log in to the portal to e-file their forms. The TCC application processing time typically takes around 45 business days. Benefits of the IRIS Taxpayer Portal include:

  • E-file up to 100 returns at a time
  • Forms may be entered manually or by .csv upload
  • Payee copies can be downloaded
  • Records of completed, filed, and distributed forms may be saved
  • Issuer information can be managed and saved

For more information non applying for a TCC code, visit https://www.irs.gov/tax-professionals/iris-application-for-tcc

Filing Information Returns Electronically (FIRE)
Similar to IRIS, FIRE is another e-filing option the IRS offers for reporting of information returns. Like IRIS, FIRE also requires filers to apply for a FIRE Transmitter Control Code (the FIRE TCC is not interchangeable with the IRIS TCC). The main difference between FIRE and IRIS is that the FIRE system requires filers to use special software to create the electronic files to be uploaded to the system.

IRS TIN Matching Program
The IRS Tin Matching program is a helpful service offered to payers and/or their authorized agents who submit information returns. The program enables validation of TIN and name combinations prior to submitting an information return which can help avoid penalties for filing a return with incorrect information. There is no fee to access this service, but users must fill out an online application to use the program.

As a reminder, a 30-day extension for information returns such as 1099’s and W-2’s may be filed with the IRS. We can now file this electronically on your behalf, if requested.

Frequently Asked Questions

  • How do I determine whether a vendor is a 1099 contractor or W-2 Employee?
    • Click here to review the difference between employees and independent contractors.
  • What is the difference between 1099 MISC and 1099 NEC?
    • Click here to determine which type of 1099 needs to be issued.
  • What are the LA Department of Revenue 1099 Filing Requirements?
    • Click here to review the 1099 filing requirements for Louisiana.

As always, we are happy to assist in any way we can. Please reach out at CAS@htbcpa.com

Contact HTB