Earlier this week, Rob wrote an article about 1099-Misc filing requirements for real estate investors. After the bellyaching about my lack of timeliness, he noted that an electronic filing option is available but wrote that we use the paper filing method. There’s a reason.
Unlike most tax forms, which can be obtained in fillable format from the IRS website and printed for filing, the IRS still requires certain forms, such as W-2s and 1099s, to be filed in a format that can be optically scanned. This means that the old laser printer won’t comply with the IRS requirements, and the IRS can even assess a penalty to emphasize the point. While the IRS does indeed accept electronic filing of 1099 data, it has to be transmitted in a particular format which requires specialized software. For the individual real estate investor, it probably doesn’t make sense to purchase the software at a price of $85 or more to do the job.
But where Rob’s all about problems, I’m about solutions.
Low Cost Online Filing Options for 1099-Misc Forms
I’ve recently run across some online filing solutions for getting the job done.
PayCycle offers on online service for filing 1099s. The service allows you to print 1099s for mailing to the recipients and files the information on your behalf with the IRS. $39 will get you up to 50. That’s about the price for a forms and template kit at the office supply stores.
Here’s another option, which may be our winner. Cleverly named, FileTaxes.com offers an e-filing option for $3.79 a crack. If you have only a few 1099 forms to file, this may be the option for you.
Official disclaimer: We haven’t tried either of these services yet. Two reasons here. First, I didn’t know about them until today. Second, it was pretty funny hearing about Rob running around trying to find the last of the paper forms yesterday.
The mailing deadline for recipient copies is today, so get on it!
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