Electronically Filing Your 1099s

September 19, 2019

ahambach

Background

The IRS allows businesses to annually file their 1099-MISC forms electronically (also known as e-File), instead of manually printing paper copies and sending them to the IRS. For more details, see the IRS website topic Filing Information Returns Electronically.  Note when you e-file, you will not need to file the summary Form 1096.  This is only needed when filing paper copies.

As a Patriot Software Accounting or 1099 only customer, Patriot offers an option to electronically file (e-File) your 1099-MISC forms with the IRS and participating states at the end of the year for an additional cost.  e-Filing is available from January 1 to March 31 following the year that ended.

The fee will be charged to your credit card at the time you e-File.  If your credit card charge fails, you will need to repeat the e-Filing request process.  If you choose not to have Patriot e-File your 1099s to the IRS, you will be responsible for filing your 1099s and 1096 with the IRS and any required states.

IRS Filing Deadlines

Note that even though the e-Filing window is open through March 31, there are sooner deadlines for filing and distributing 1099 forms to your vendors, depending on the 1099-MISC box you are reporting.

Nonemployee Compensation filing and 1099 form distribution is due to the IRS by January 31.  Any filing after this date is subject to IRS late penalties that are your responsibility. Filing for 1099-MISC reporting for other types of compensation are due April 1, but forms must still be given to vendors by January 31.

How to e-File Your 1099s in Patriot Software

Before you e-File your 1099s, make sure you have done the following:

  1. Make sure you are within the January 1 to March 31 window for the prior year.  Otherwise, you will need to wait until the e-Filing window is open.
  2. Go to Accounting > Your Company > Vendor List to confirm each vendor who needs a 1099 is set to “Yes” for “Create 1099.”
  3. Run the Missing 1099 Info Report to make sure all vendors have either their Employer Identification Number or Social Security Number entered.
  4. Run the 1099 Summary Report to confirm the vendor payment amounts for the year are correct.  These amounts will print on the 1099 forms and be reported to the IRS.

Once you are ready to e-File:

  1. Go to Reports > 1099 Contractor Forms > e-File 1099s
  2. If you are viewing this page between January 1 and March 31, confirm you have completed the tasks, and click “I’m ready to e-File.”  Otherwise, you will see a message that e-Filing is closed for the year.
  3. Review your e-Filing fee.  Patriot will charge this fee to your credit card once your 1099 e-Filing has been submitted to the IRS.  Click “I Agree.”
  4. Review the state for each vendor.  Under the Combined Federal/State Filing Program, the IRS will automatically share your 1099 information with the appropriate states for no additional charge. Note that most, but not all states with income tax participate in the combined e-File program.  States with no income tax do not participate. If a vendor is located in a state that does not participate, “Not Supported” will be selected.  If needed, you can change the state here. The dropdown list will only show participating states. Note: If a vendor is located in a state with income tax that does not participate, it will be your responsibility to file their 1099 with the state.  You can still download a paper 1099/1096 form to send to the state via mail.

  1. Confirm your 1099 information a final time before submitting for e-File.  You will see a summary of each Vendor, the 1099 reported dollar amount, and whether the 1099 is also being filed with the state.  Check the box to agree that the information is accurate and agree to the e-Filing fee, and click “Submit.”
  2. You will see a “success” message that your 1099 e-Filing was submitted.
  3. Your status will show “Pending” until we upload your 1099s and to the IRS.  When this happens, your status will change to “Uploaded.”

Print and Distribute Your 1099 Forms

You will still need to print hardcopies of each 1099 and give to your vendors. 

  1. Go to Reports > 1099 Contractor Forms > View and Print 1099/1096.
  2. Select the year and click Run.
  3. Under Print Options, you have two choices for downloading 1099 forms for 2018 and later:
    1. Formatted: This PDF only contains the information to be printed on a pre-printed IRS Form 1099
    2. Print Friendly:  This PDF contains the entire form that can be printed on blank paper.

For more details, see the help article Viewing and Printing Forms 1099 and 1096 in Patriot Accounting Software

If You Need to Make Corrections After You Have e-Filed

You can only go through the 1099 e-File process in the software one time per year.  If you need to make a correction after you have submitted your e-File, you will need to manually file a corrected return to the IRS.  See the following articles for more info:

Creating and Printing Modified 1099/1096 Forms in Patriot Accounting Software

How to Issue a Corrected Form 1099-MISC.

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