It’s still only January but time to get going on 1099’s!  There are some important changes for QB users in filing 2016 IRS Form 1099’s including due dates and QB options.

Intuit 1099 e-file service

The Intuit 1099 e-file service may be the best choice to get it done fast and effectively – except for QB Desktop Users (e.g., QB Enterprise, QB Premier, QB Pro).  QB Desktop once relied upon the Intuit Sync Manager utility to transmit data back and forth, however this is no longer available so QB Desktop users are being herded to www.Tax1099.com.  After your data is loaded up, Tax1099 connects with QB Desktop.  Tax1099.com can do the IRS e-filing as well as email 1099’s to your vendors.  The latest pricing is $15 for creation and e-filing of up to three 1099-MISC forms, then $4 for each additional form, and no additional charge for over 20 forms.

And here are a few other bullet-points on 2017 IRS Form 1099 notes and changes for QuickBooks users:

QuickBooks Desktop

As noted earlier, 1099-MISC’s can be e-filed and send to vendors by using Intuit’s 1099 partner – Tax1099.  Also, be sure that your version of QB is 2014 or newer.  Or better yet, call us and we will get you on QuickBooks Online.  With vintage versions of QB, Tax1099 can still be used but data needs to be manually entered.

QuickBooks Online

QBO is smooth at handling 1099’s but it does take a few minutes to review all your vendors to make sure that all required info is loaded in.  If not, ask each vendor to complete and return an IRS Form W-9 “Request for Taxpayer Identification Number and Certification”.  Enter this into QBO for the affected vendor.  QBO will tell you which vendors do not have all required information (usually the taxpayer ID).  Then, in emails to vendors where this info is requested, refer them to https://www.irs.gov/pub/irs-pdf/fw9.pdf.  Also, accounts need to be mapped to Form 1099 boxes; most can be mapped to Box 7, “Non-employee compensation.”  In QBO do Vendors > Prepare 1099s (top right of screen) and you will get to the mapping in Step 2.  A great time-saver is that vendor info and payments automatically flow into the 1099 area.  Pricing is $15 for the first 3 1099’s, then $4 each.   The service generates pdf’s of your 1099’s which must then be emailed to vendors, or printed and mailed.

Intuit Standalone E-file service

This service is aimed at clients who are not already on a QB platform, or perhaps using an older QB version.  1099 data must be manually entered (vs csv or excel upload).  The Standalone E-file service can be accessed through Intuit Payroll websites or Intuit Online Payroll.  Maybe not the best if there are lots of 1099’s to send out but otherwise it gets the job done.

Intuit Online Payroll for Accountant

With this option 1099 data must be manually entered and there is no option to import from a spreadsheet or otherwise, although returning customers can generated current-year 1099’s on vendors used previously.  Accountants who use Intuit Online Payroll for Accounting Professionals can file for multiple clients for $15 per client. This includes unlimited 1099-MISC forms for each client on the online payroll service. Besides current payroll clients “1099-only” clients can be added.

Intuit Online Payroll

If contactors were paid through Intuit Online Payroll, then you’re in luck.  Just go to the “Taxes & Forms” area to begin.  All payments go to IRS Form 1099 Box 7 –  “Non-employee compensation” however numbers for other boxes can be manually added, and new vendors and payment amounts can be entered on-the-fly.

Intuit Full Service Plan

A major stress reliever here is that the Intuit Full Service plan automatically produces, files and emails 1099’s at year-end.  If any box other than “Box 7” is needed, however, go with the separate 1099 E-File Service.  Manual data-entry is required and expect to work with the Intuit Full Service Plan people directly.  In fact, that’s why you are paying more here – help from experts!

IRS Dates for 1099 Filings:

  • January 31, 2017 – Deadline to file when reporting non-employee compensation payments in Form 1099 Box 7.
  • January 31, 2017 – Deadline for providing contractors/vendors with 1099-MISC copies.
  • February 15, 2017  – Due date for providing 1099-MISC statements to recipients if amounts are reported in Box 8 Substitute payments in lieu of dividends or interest) or 14 (Gross proceeds paid to an attorney).
  • January 31, 2017 – IRS deadline for e-filing 1099-MISC forms. If using the Intuit E-file Service, try and submit forms by January 30 so that they can be processed by the new IRS due date on Jan 31, 2017.
  • February 28, 2017 – Filing deadline to IRS via paper if filing outside of Box 7.  And remember that the covering form (Form 1096) must accompany all paper submissions.
  • March 31, 2017 – E-Filing deadline to IRS if filing outside of Box 7.
  • April 30, 2017 – Intuit service ends (at midnight Pacific time).

Besides 1099Tax.com there are a few other third party applications that talk with Intuit and QuickBooks products. These may be especially useful for those needing 1099 features beyond just 1099-MISC Box 7.  A few of these include Efile4Biz, Track1099, Avalara 1099, and Track1099.

And a few other 1099 factoids:

  • The 1099 E-File services creates PDF copies of 1099’s which can be emailed to your contractors, or mailed if you are old-fashioned but be mindful of the January 31 deadline this year.
  • Technically the IRS requires companies to get the contractor’s permission to email instead of regular-mail the 1099.  This permission may be informally obtained in your email when getting the W-9, but the chances of trouble for emailing rather than snail-mailing are microscopic.
  • Approved IRS e-file providers should transmit the required info to the IRS for you.
  • E-filers need not worry about the old IRS Form 1096 – not needed when you e-file! Also, the old drill about running around and looking for pre-printed red-ink official 1099’s (and paying any price if only they can be found) is also now a relic of the past.