Tax1099 Review: Pricing, Features, and Honest Assessment

Tax1099 is an IRS-authorized e-filing platform built by Zenwork that handles 1099s, W-2s, payroll forms, and more. It's used by over 40,000 businesses ranging from small property managers to national gig platforms. But is it actually worth using? Let's break it down.

What Is Tax1099?

Tax1099 is a cloud-based tax compliance platform that lets you e-file information returns directly with the IRS, SSA, and state agencies. The platform started as a simple 1099-MISC filing tool but has expanded to support 94X payroll forms, W-2s, 1098s, ACA forms, and state filings.

The platform integrates with popular accounting software like QuickBooks Desktop, QuickBooks Online, Xero, Bill.com, FreshBooks, Sage Intacct, Zoho, and Oracle NetSuite. You can also import data via CSV/Excel or use their REST API for automation.

Tax1099 Pricing Breakdown

Tax1099 uses a pay-per-form model with optional subscription tiers. Here's how it works:

Essential Plan (Pay As You Go)

• No annual subscription fee
• $2.99 per form for 1-20 forms
• Volume discounts as you file more
• Custom pricing for 1000+ forms
• Best for: Seasonal filers or low-volume businesses

Teams Plan ($249/year)

• Includes 250 free TIN matches
• Reporting and team collaboration features
• Shared access for multiple users
• Best for: Mid-sized businesses needing team access

Scale Plan ($349/year)

• API access
• Bulk TIN matching workflow
• User management and notice handling
• Best for: High-volume filers and enterprises

Additional Service Fees

• TIN Matching: $1 per real-time match, or $150 for bulk matching (10,000 records)
• Print & Mail: $1.90 (U.S.) or $4.99 (International)
• IRS-Compliant eDelivery: $0.25 per form
• Payroll forms (940, 941, etc.): As low as $1.34/form

The tiered pricing means higher volumes get lower per-form costs. That $2.99 starting price drops significantly once you're filing hundreds of forms.

Key Features

Tax1099 packs a lot into its platform. Here's what matters:

Form Coverage

Tax1099 supports over 40 IRS forms including 1099-NEC, 1099-MISC, 1099-INT, 1099-K, 1099-DIV, 1099-R, W-2, 940, 941, 944, 945, 1095-B/C, and more. If you need to file it with the IRS, they probably have it.

TIN Matching

Real-time TIN matching checks payee names and TINs against IRS records before you file. This helps reduce errors and avoid penalties. Bulk TIN matching is available for high-volume filers.

Integrations

The platform connects with QuickBooks Desktop, QuickBooks Online, Xero, BILL, Oracle NetSuite, FreshBooks, Sage Intacct, Zoho, Tipalti, and Entrata. You can also import via CSV, Excel, PDF import for W-9s, or SFTP for enterprise automation.

Workflow Management

Add users, assign specific tasks (data entry, review, approval, submission), and track actions in real-time. Enterprise accounts get rights management for controlling who can do what.

Scheduled Filing

Prepare forms in advance and schedule them for future submission. Reschedule or update information at no extra cost before transmitting.

Recipient Delivery Options

Send recipient copies via IRS-compliant e-delivery portal ($0.25/form), print and mail through USPS ($1.90 domestic), or download PDFs for manual distribution.

Security

256-bit encryption, TIN masking, two-factor authentication, and annual SSAE-21 Type II audits. They also meet GDPR standards and support HIPAA compliance with signed BAA on eligible plans.

AI Tax Assist

Zenwork AI Tax Assist provides 24/7 chat support for tax filing questions. It's helpful for quick answers, though complex issues may still need human support.

What's Good About Tax1099

Strong integrations: The QuickBooks, Xero, and NetSuite integrations genuinely save time. Import your vendor data and payment info directly instead of manual entry.

Bulk processing: If you're filing hundreds or thousands of forms, bulk upload via Excel/CSV and bulk TIN matching are game changers.

Flexible pricing: No forced bundles. Pay for what you use. The pay-as-you-go model works well for seasonal filers.

Form variety: One platform for 1099s, W-2s, payroll forms, and ACA reporting. Less tool-hopping.

Four years of data storage: Access historical forms without digging through old files.

Electronic delivery: Free e-delivery of recipient copies saves on mailing costs.

What Sucks About Tax1099

Customer service during peak season: Multiple user reviews mention difficulty reaching support when it matters most—during tax filing deadlines. The AI chat isn't always helpful for complex issues.

Costs add up quickly: The base per-form price looks cheap, but adding print/mail, state filing, TIN matching, and recipient portals bumps up the total fast. Calculate your full cost before committing.

Interface complexity: If you only file once a year, the platform can feel overwhelming. It's built for power users who file regularly.

Some serious reliability concerns: One long-time user reported significant issues including a data corruption incident that led to $70,000 in IRS penalties and ongoing problems with SSA W-2 submissions. While this appears to be an edge case, it's worth noting for high-volume filers.

W-2 filing issues: Several reviews mention problems specifically with W-2 submissions to the Social Security Administration. If W-2 filing is your primary need, research this thoroughly.

Tax1099 vs. Alternatives

Here's how Tax1099 stacks up against common alternatives:

Tax1099 vs. TaxBandits

TaxBandits charges around $2.75 per form for federal filing and $0.70 for state filing. Similar feature set, but TaxBandits has a slightly different subscription model. Tax1099 generally offers stronger accounting software integrations, while TaxBandits may be simpler for basic filing needs.

Tax1099 vs. 1099Online

1099Online is cheaper at high volumes (as low as $0.69 per form for 1000+ forms vs. custom pricing with Tax1099). 1099Online is simpler and more affordable for straightforward filing, but Tax1099 offers deeper integrations and enterprise features.

Tax1099 vs. Avalara (Track1099)

Avalara offers pricing as low as $0.63 per form at volume. If you're already in the Avalara ecosystem for sales tax compliance, their 1099 solution integrates well. Tax1099 is more of a standalone specialist with stronger workflow management.

Tax1099 vs. IRS IRIS (Free)

The IRS IRIS portal is free but manual. No integrations, no bulk TIN matching, no automated error checking. Fine for 3-5 forms. Painful for anything more. The time savings from automation typically justify the cost of paid platforms.

Who Should Use Tax1099?

Good fit:

• Businesses filing 50+ forms annually
• Companies using QuickBooks, Xero, or NetSuite who want direct integration
• Accounting firms managing multiple clients
• Teams needing workflow management and user permissions
• Anyone needing bulk TIN matching before filing

Not ideal for:

• Individuals filing 5-10 forms (overkill; use something simpler)
• Businesses primarily filing W-2s (research the SSA issues first)
• Users who only file once yearly and want the simplest possible interface

The Bottom Line

Tax1099 is a solid, feature-rich platform for businesses that file significant volumes of 1099s and other information returns. The integrations with major accounting software genuinely reduce manual work, and the pricing scales reasonably with volume.

However, the customer service complaints during peak season are concerning, and the costs can escalate when you add services beyond basic e-filing. The reported reliability issues, while seemingly rare, are serious enough to warrant careful consideration for high-stakes filing situations.

If you're managing contractor payments through payroll software, you might also want to check out our Gusto review or compare payroll software options for small business—some payroll platforms handle 1099 filing as part of the package.

For most mid-sized businesses handling 1099-NEC filing for contractors, Tax1099 does the job well. Just calculate your full costs upfront and have a backup plan for customer support during crunch time.