IRS Forms 1099 and W-2

IRS Forms 1099 and W-2 must be eFiled with the IRS every year by January 31st. The penalty for each late form is several hundred dollars. While the IRS has only one version of the W-2 Form, which is for traditional employees, there are multiple versions of Form 1099.

  • IRS Form 1099-NEC – If you pay any individual or organization more than $600 during the tax year, and they’re not a corporation, in general you must report those payments on a 1099-NEC for each recipient. This form is most often used for independent contractors and freelancers.
    • Before you issue the 1099-NEC, the IRS requires you to obtain IRS Form W-9 from each recipient. Request the W-9 as soon as a recipient starts earning money from you, and if necessary, withhold their payments until it’s completed.
  • IRS Form 1099-MISC is used to report a lengthy list of payments, including rents, payments to attorneys, certain farming and fishing transactions, and more.
  • For all other versions of IRS Form 1099, taxpayers are more likely to be the recipient than the issuer.

We’re happy to complete and file IRS Forms 1099 and W-2 for you, or you can easily do it yourself. We’ve used for years. The process is very easy, and we’ve never had any issues. If you collect the email addresses for all your recipients, the forms can be delivered by email instead of regular mail. (Yes, email delivery does meet IRS requirements.) And there are video tutorials on their website.

Go to Track1099 Website


    • TAKE SPECIAL NOTICE: The IRS requires you to have an IRS Form W-9 on file for any 1099 recipient. However, it is often hard to get 1099 recipients to fill out this form. Reasons include being too busy, forgetting, or not understanding it has to be done. So we suggest that you withhold their first payment until after they’ve completed the W-9.
    • If you have a payroll service such as QuickBooks Payroll or Gusto, we strongly recommend you allow that service to send out 1099s and W-2s for anyone you’ve paid through that service.
    • For 1099 recipients you’ve paid with any method outside of QuickBooks Payroll, we strongly recommend that you not use QuickBooks to send out the 1099s. That method is full of glitches. Instead, use Track1099, which works very smoothly. Not using QuickBooks will not “mess up” anything in QuickBooks.
    • If you’ve paid W-2 employees without using a payroll service, we recommend you use Track1099 instead of QuickBooks for the same reasons outlined in the last bullet point.
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