Tax1099 Review: Is It Worth It for Your 1099 Filing?

Tax1099 is one of the most popular IRS-authorized e-filing platforms for 1099s, W-2s, and other tax forms. It's used by over 100,000 businesses and promises to simplify the entire filing process with integrations, bulk uploads, and automated compliance.

But is it actually good? After digging through hundreds of user reviews and testing the platform, here's the honest breakdown.

What Is Tax1099?

Tax1099 is a cloud-based e-filing platform built by Zenwork, Inc. It handles federal and state filing for 1099 series forms (NEC, MISC, DIV, INT, K, etc.), W-2s, 94X payroll forms, ACA forms, and more. The platform is IRS-authorized and has won industry awards including the Accountex User Favorite Award.

Founded in 2010, Tax1099 processes millions of informational returns annually and has been recognized on Inc. 5000's list of fastest-growing companies. The platform serves small businesses, accounting firms, CPAs, bookkeepers, and enterprise corporations across all 50 states.

The core appeal: you can import data from your accounting software, validate TINs against IRS records, e-file to the IRS, and deliver copies to recipients-all from one dashboard. For businesses that file multiple 1099s each year, this beats the manual alternative of ordering forms, printing, mailing, and filing separately with the IRS.

Tax1099 Pricing

Tax1099 uses a tiered, pay-per-form pricing model. There's no upfront subscription required for basic use-you pay as you go based on volume.

Per-Form E-Filing Costs

• 1-20 forms: $2.99 per form
• 21-150 forms: $2.30 per form
• 151-500 forms: $1.31 per form
• 501-1,000 forms: $0.68 per form
• 1,000+ forms: Custom pricing

For payroll forms like 940 and 941, pricing can go as low as $1.34 per form at higher volumes. The volume-based discount structure makes Tax1099 increasingly cost-effective as your filing needs grow-high-volume filers can save substantially compared to flat-rate competitors.

Add-On Services

• Real-time TIN Matching: $1 per TIN
• Bulk TIN Matching: $150 for 10,000 records (approximately $0.015 per record, significantly cheaper than real-time matching for large volumes)
• Print & Mail (US): $1.90 per form
• Print & Mail (International): $4.99 per form
• IRS-compliant eDelivery: $0.25 per form

Note: There's a $1 rush-hour fee for mail requests placed in the final 5 days before the February deadline.

Subscription Plans

Tax1099 now offers three account types:

Essential Plan (Free): The standard account available at no cost. You pay only per-form filing fees. This plan includes access to create payers, recipients, and forms, process W-8/W-9 requests, run TIN matches, and access import tools and historical forms. Perfect for small businesses with straightforward filing needs.

Teams Plan ($249/year): Adds reporting, team collaboration features, and 250 free TIN matches. This tier is designed for mid-sized businesses that need shared access and verification of large-volume TINs. The included TIN matches alone provide $250 in value, making this plan cost-effective if you regularly verify taxpayer information.

Scale Plan ($349/year): The enterprise solution includes API access, bulk TIN matching workflows, user management with rights control, workflow management for reviewing forms before submission, and notice management. Ideal for high-volume filers, large enterprises, accounting firms managing multiple clients, and organizations requiring custom integrations with real-time alerts.

The pricing structure is transparent with volume-based discounts that automatically apply as you reach higher tiers. Unlike competitors that bundle features into expensive packages, Tax1099's modular approach lets you pay only for what you need.

Key Features

Integrations

Tax1099 connects with over 12 accounting platforms including QuickBooks Desktop, QuickBooks Online, Xero, Zoho Books, FreshBooks, BILL, Oracle NetSuite, Sage Intacct, Tipalti, Entrata, and Excel. If your accounting data lives in one of these systems, you can import it directly instead of manual entry. This is a genuine time-saver, especially if you're filing dozens or hundreds of forms.

The integration quality varies by platform. QuickBooks integrations (both Desktop and Online) are the most mature and reliable according to user reviews. Xero integration also works smoothly for most users. The platform also supports CSV imports with flexible field mapping, PDF data extraction for W-2 and W-9 forms, and SFTP for automated bulk uploads.

TIN Matching

The TIN Match feature validates taxpayer identification numbers against IRS records before you file. This catches errors that would otherwise result in rejected filings or B-Notices from the IRS. You can run real-time checks or batch process thousands of records. Given that IRS penalties for invalid TINs can stack up fast, this feature alone can justify the platform cost.

Tax1099 offers three TIN matching options: interactive (real-time) matching at $1 per TIN, bulk matching within 24 hours for $150 per 10,000 records, and API-based matching for enterprises. The system validates TIN, name, and TIN type against the IRS database-all three must match to receive approval. Failed matches can be rechecked at no additional charge, and the platform can automatically send W-9 request emails to vendors with incorrect information.

This is critical for compliance: businesses that fail to validate TINs face penalties starting at $50 per incorrect form if not corrected within 30 days of IRS notice, jumping to $280 per form if more than 30 days late. Additionally, unvalidated TINs can trigger backup withholding requirements of 24% of each payment.

Bulk Processing

Upload hundreds or thousands of forms at once via CSV, PDF import, or API. The platform handles form validation, address verification (via USPS), duplicate detection, and error checking. For accounting firms or businesses with high contractor volumes, this is essential.

The bulk upload templates are customizable, allowing you to map your existing data fields to Tax1099's requirements. The system performs pre-submission validation using IRS business rules, basic form validation, and IRS schema checks to ensure acceptance. Any detected errors are clearly listed with prompts to remedy them before submission.

AI Tax Assist

Zenwork AI Tax Assist provides 24/7 chat support to answer tax filing questions, guide you through complex scenarios, and help with compliance. It's not a replacement for a CPA, but it's useful for quick questions during filing. The AI assistant can help with form selection, deadline reminders, error troubleshooting, and navigating platform features.

However, user reviews indicate the AI chatbot has limitations. For complex issues or technical problems, users often need to escalate to human support, which can be challenging during peak season.

Form Coverage

Tax1099 handles a wide range of forms: 1099-NEC, 1099-MISC, 1099-DIV, 1099-INT, 1099-K, 1099-R, 1099-S, 1099-PATR, 1099-B, 1099-C, 1099-OID, 1099-A, 1099-SA, 1099-Q, 1099-G, W-2, W-9/W-8, 940, 941, 944, 945, 1095-B/C, 1094-B/C, and state forms. If you have diverse filing needs, you won't need to juggle multiple platforms.

The platform also supports corrected and void form e-filing, scheduled e-filing for future submission dates, and resubmission of IRS-rejected forms at no additional cost. This comprehensive coverage makes Tax1099 suitable for businesses with complex reporting requirements beyond just basic 1099-NEC filing.

Recipient Delivery

Three options: eDelivery through a secure online portal ($0.25/form), print and mail via USPS ($1.90 domestic, $4.99 international), or download PDFs to handle delivery yourself. The eDelivery option is the most cost-effective and meets IRS compliance requirements-recipients get notified via email and can access their forms through a secure link.

The print and mail service includes tracking, and Tax1099 handles the entire process including envelope stuffing, postage, and delivery confirmation. For businesses with international contractors, the $4.99 international mailing fee is competitive compared to DIY international shipping costs.

State Filing and Compliance

Tax1099 supports state filing through the IRS Combined Federal/State (CF/SF) program for over 30 participating states. For states that require separate filing-including California, Pennsylvania, Oregon, New Jersey, Michigan, and Louisiana-the platform handles direct XML submissions to state agencies.

This dual-track approach ensures compliance across all jurisdictions without requiring you to navigate multiple state portals. The system automatically determines which filing method applies based on your recipient locations and form types.

Security and Data Protection

Tax1099 implements bank-level security measures including 256-bit SSL encryption, SOC 2 Type II certification, two-factor authentication, TIN masking, and USPS address validation. The platform is GDPR-compliant and supports HIPAA compliance via signed Business Associate Agreements on eligible plans.

Data is stored securely for four years, providing easy access for reprints, audits, and reference. The platform includes comprehensive audit trails that track all changes to forms, ensuring transparency and accountability for compliance reviews.

What Users Like

After analyzing reviews across GetApp, Capterra, Software Advice, Trustpilot, and other platforms, here's what consistently comes up as positives:

• Easy to use: The interface is straightforward. Most users can figure it out without extensive training. Data entry is simple, and prior-year vendor information carries forward automatically, reducing repetitive data entry each tax season.
• Reasonable pricing: Compared to hiring an accountant or using more expensive enterprise solutions, Tax1099 is affordable-especially for small businesses with occasional filing needs. The volume-based discounts make it increasingly competitive as filing volumes grow.
• Time savings: The QuickBooks/Xero integrations eliminate hours of manual data entry. Users report completing their entire annual 1099 filing process in a fraction of the time compared to manual methods. One user mentioned reducing filing time from several days to just a few hours.
• Reliable for basic use: Many long-term users (8+ years) report consistent, hassle-free filing season after season for straightforward 1099-NEC needs. The platform stability during non-peak periods is generally praised.
• Print & mail convenience: Not having to stuff envelopes, buy stamps, and visit the post office is a legitimate quality-of-life improvement. Users appreciate the tracking and confirmation provided with the mailing service.
• Data preservation: The ability to access historical filing data for multiple years is valuable for audits, corrections, and reference. Users appreciate not having to maintain separate filing records.

What Users Hate

Now for the rough parts. About 85% of reviews are positive on value, but the remaining 15% have some serious complaints:

• Customer support: This is the most common complaint. Support is difficult to reach, especially during peak filing season (January-February). Chat can be unresponsive, email response times are slow when you're up against deadlines, and there's no phone support readily available. Multiple users report waiting days for responses to urgent issues.
• Bugs and glitches: Some users report persistent bugs-login issues, forms getting stuck in "Submitted" status, and data display problems. One reviewer documented years of bugs that required constant double-checking. During testing, some users experienced problems with the "Modern View" interface that were resolved by switching to "Classic View."
• Site slowdowns: During peak filing periods (late January through early February), the platform can lag significantly. When you're rushing to meet an IRS deadline, this is frustrating. Some users report timeout issues and difficulty uploading data during busy hours.
• Confusing corrections process: Making corrections to filed forms isn't always intuitive. Users report needing support to navigate corrections, which is problematic given the support issues. The interface doesn't always clearly indicate the steps required for amended returns.
• Hidden complexity in pricing: While the per-form pricing is transparent, the add-ons can stack up. Mailing, TIN matching, state filing, and corrections can make your final bill higher than expected. Users recommend carefully calculating total costs before committing, especially for first-time filers.
• State filing confusion: Some users report difficulties determining which states require separate filing versus CF/SF program participation. The platform doesn't always provide clear guidance on state-specific requirements.
• Limited QuickBooks integration troubleshooting: When import problems occur from QuickBooks, customer support is sometimes not knowledgeable enough to resolve technical integration issues quickly.

The Worst-Case Scenario

There's one particularly detailed negative review worth acknowledging: a long-time user reported that a site crash corrupted their recipient database, swapping business names and personal names across 2,800 records. This resulted in five years of failed TIN matching and eventual IRS penalties totaling $70,000+. While this appears to be an isolated incident, it highlights the importance of maintaining your own backup records and regularly auditing your data on any platform.

Additionally, some users reported issues with W-2 submissions to the Social Security Administration in previous years. Tax1099 has since announced that these issues have been fully resolved and systems are operational, but the incidents underscore the importance of verifying successful transmission and acceptance for all filings.

Understanding IRS Filing Requirements

Before choosing any 1099 platform, it's important to understand your filing obligations. The IRS requires electronic filing for anyone submitting 10 or more information returns together, including all 1099 forms, W-2s, and other information returns. This threshold was lowered from 250 returns effective for tax years beginning January 1, 2024.

Penalties for non-compliance start at $60 per form if corrected within 30 days, $120 per form if corrected within August 1, and $330 per form for corrections after August 1 or not corrected at all. Intentional disregard penalties are $660 per form with no upper limit. These penalties compound with interest until paid in full.

Important deadlines to remember: recipient copies must be distributed by February 2 (or February 17 for certain forms like 1099-MISC with boxes 8 and 10), paper filing is due March 2 (but Form 1099-NEC is due February 2), and e-filing is due March 31 (except Form 1099-NEC, which is due February 2).

Tax1099 Alternatives

If Tax1099 doesn't seem like the right fit, here are the main competitors:

Track1099 (Avalara 1099 & W9)

Now part of Avalara's compliance ecosystem. Pricing starts at $3.10 per form for 1-15 forms and drops to $0.63 at volumes above 500. Strong API with 5,000 free sandbox calls monthly. Good fit if you're already using Avalara products or need deep accounting integrations.

Track1099 offers robust API integrations for marketplace platforms and ecommerce sites, making it ideal for businesses managing vendor payments through multiple channels. The platform provides real-time TIN matching at $0.45 per form. However, some users report that Track1099 may not correctly handle certain state filing requirements-for example, New Jersey requires 1099-NEC submission regardless of withholding amount, which not all platforms automatically accommodate.

TaxBandits

Starts at $2.75 per form for federal filing, plus $0.70 for state filing. Offers a multi-client dashboard and role-based access-good for accounting firms managing multiple EINs. Known for responsive customer support, which addresses one of Tax1099's weaknesses.

TaxBandits provides 24/7 dedicated developer support for high-volume filers and holds SOC-2, HIPAA, CCPA, and PCI DSS certifications. The platform offers white-label e-delivery portal options for branding customization. The interface can feel complex for smaller businesses with simple needs, but it's well-suited for accounting firms and payroll bureaus handling diverse client requirements.

Yearli (by Greatland)

Tiered subscription model: Core (free + filing fees), Performance ($129/year + fees), Premier ($799/year + fees). Bundles tend to include more features per tier, which can be good or confusing depending on your needs. Strong for businesses that want predictable annual costs.

Yearli offers same-day USPS mailing if submitted before cutoff times and provides phone support in addition to chat and email. The tiered structure provides a clear upgrade path as your business grows, with higher tiers adding TIN matching, state filing, APIs, and historical archives.

1099Pro

Offers both cloud subscription and desktop software options. Cloud plans start at $449/year for e-file only, $684/year for e-file with print and mail, and $714/year for e-file with print, mail, and e-delivery. Desktop software is available as a one-time purchase starting at $389.

1099Pro provides a 7-day free trial and is popular with larger organizations needing strong compliance features. The platform offers comprehensive validation, multi-entity support, and extensive form coverage across all 50 states. Best suited for enterprises with dedicated IT teams.

IRS IRIS Portal

Free option directly from the IRS. If you're filing a small number of forms and don't need integrations or bulk processing, this works. The IRIS (Information Reporting Intake System) allows filing up to 100 returns at once through the Taxpayer Portal.

The tradeoff is no automation, no TIN matching, no recipient delivery services, and no integrations-you handle everything manually. You'll also need to obtain a Transmitter Control Code (TCC), which can take up to 45 days for processing. Corrections require uploading new files and manually distributing updated forms to recipients. The IRIS system became mandatory for all filers by December 31, 2026, replacing the older FIRE system.

Tax1099 vs. Competitors: Feature Comparison

When comparing Tax1099 to its main competitors, several distinctions emerge:

Pricing competitiveness: Tax1099's $2.99 starting price is competitive with TaxBandits ($2.75) but slightly lower than Track1099 ($3.10). For high-volume filers (500+ forms), Tax1099's $0.68 per form beats TaxBandits ($0.80) and Track1099 ($0.63).

TIN Matching: Tax1099, Track1099, and TaxBandits all offer real-time TIN matching. Tax1099's bulk TIN matching at $150 per 10,000 records ($0.015 per record) is significantly more affordable than real-time options for large datasets. Track1099 charges $0.45 per TIN match, making Tax1099's bulk option over 30 times cheaper for volume validation.

Customer Support: This is where Tax1099 falls behind. TaxBandits and Yearli both offer phone support, while Tax1099 relies primarily on chat and email. During peak season, this difference becomes significant when urgent issues arise.

Integration depth: Tax1099 offers 12+ no-code integrations, matching Track1099's integration breadth. TaxBandits offers fewer native integrations but provides strong API capabilities. For QuickBooks and Xero users, all three platforms provide solid integration experiences.

State filing: All major platforms handle CF/SF states, but handling of separate-filing states varies. Tax1099 explicitly supports direct XML submissions to non-participating states, as do Track1099 and TaxBandits. Always verify your specific state requirements before selecting a platform.

How to Choose the Right 1099 Platform

Selecting the best 1099 e-filing service depends on your specific business needs. Consider these factors:

Filing volume: If you're filing fewer than 20 forms annually, the free IRS IRIS portal might suffice despite its limitations. For 20-500 forms, Tax1099's pay-per-form model offers excellent value. Above 500 forms, evaluate platforms offering custom enterprise pricing and dedicated support.

Integration requirements: If you use QuickBooks, Xero, NetSuite, or other major accounting platforms, prioritize platforms with proven integration reliability. Tax1099, Track1099, and TaxBandits all support major accounting software, but integration quality varies-check recent user reviews for your specific software combination.

Support needs: If you need phone support or expect to require assistance during peak filing periods, TaxBandits or Yearli might be better choices than Tax1099. If you're comfortable with email/chat support and can file early to avoid deadline crunches, Tax1099's lower pricing may outweigh the support limitations.

State complexity: Businesses filing in multiple states, especially non-CF/SF states, should verify that their chosen platform handles all required state submissions. Tax1099 supports over 30 CF/SF states plus direct filing for non-participating states.

Security requirements: For businesses handling sensitive data or subject to HIPAA, verify security certifications. Tax1099 offers SOC 2 Type II certification and GDPR compliance, with HIPAA support via signed BAA on eligible plans.

Budget predictability: If you prefer subscription-based pricing with predictable annual costs, Yearli's tiered plans may be appealing. If you prefer pay-as-you-go flexibility, Tax1099's Essential plan requires no upfront commitment.

Best Practices for Using Tax1099

Based on user experiences and common pitfalls, here are recommendations for getting the best results from Tax1099:

Start early: Begin your filing process in December or early January, well before deadlines. This gives you time to troubleshoot integration issues, resolve TIN mismatches, and get support responses if needed-without deadline pressure.

Validate TINs proactively: Run TIN matching in November or December before the filing rush. This allows time to request corrected W-9 forms from contractors and resolve discrepancies before filing deadlines.

Maintain backup records: Keep your own copies of all filing data, including recipient lists, payment amounts, and submission confirmations. Don't rely solely on the platform's data retention. Export CSV files of your data periodically.

Test integrations early: If using accounting software integrations, perform a test import with a small data set before the filing season. Verify that data maps correctly and all required fields populate accurately.

Use bulk TIN matching: If you're validating more than 150 TINs, the bulk TIN matching option ($150 per 10,000 records) is dramatically cheaper than real-time matching ($1 per TIN). The 24-hour turnaround is acceptable if you plan ahead.

Choose Classic View for stability: Some users report better experiences with the Classic View interface versus the Modern View. If you encounter bugs or display issues, try switching views.

Schedule filings in advance: Tax1099 offers scheduled e-filing, allowing you to prepare forms and set future submission dates. This lets you complete prep work early and ensure timely filing without last-minute scrambling.

Verify state requirements independently: Don't assume the platform handles all state nuances automatically. Check your state's specific requirements for 1099 reporting, especially for non-CF/SF states.

Who Should Use Tax1099?

Good fit:

• Small businesses filing 10-200 1099s annually who want to save time over manual filing
• Accounting firms and bookkeepers managing multiple clients (with Teams or Scale plan)
• Anyone already using QuickBooks, Xero, or other supported accounting software
• Businesses that need TIN matching to avoid IRS penalties
• Organizations comfortable with email/chat support and able to file early
• Budget-conscious businesses preferring pay-per-form pricing over subscriptions
• Companies seeking comprehensive form coverage beyond just 1099-NEC

Not ideal for:

• Solo filers with just 1-3 forms (IRS IRIS is free and sufficient)
• Anyone who needs reliable phone support during crunch time
• Organizations that can't tolerate any platform bugs or downtime during peak season
• Businesses requiring immediate response to urgent technical issues
• Companies filing exclusively during the final week before deadlines (site slowdowns are more likely)

The Bottom Line

Tax1099 is a solid, cost-effective platform for e-filing 1099s and related tax forms. The integrations are legitimately useful, pricing is competitive, and most users have positive experiences. It's been around since 2010 and handles millions of filings annually with IRS authorization and industry recognition.

But go in with realistic expectations. Customer support is a known weak point, particularly during peak filing season. Don't wait until January 30th to file if you might need help. Test your integrations and data imports well before deadlines. Keep your own backup records and audit your data after imports to catch any corruption issues early.

The platform's strengths-affordable pay-per-form pricing, extensive accounting integrations, comprehensive TIN matching, and broad form coverage-make it particularly attractive for small to mid-sized businesses with straightforward filing needs and some technical confidence. The ability to handle everything from 1099-NEC to W-2s to ACA forms in one platform eliminates the need for multiple tools.

The weaknesses-limited support availability, occasional bugs, and peak-season performance issues-can be largely mitigated by filing early and maintaining good data hygiene practices.

For most small to mid-sized businesses that need to file contractor 1099s without the headache of paper forms and manual IRS submissions, Tax1099 does the job at a reasonable price. The platform offers legitimate value for businesses that plan ahead and don't need hand-holding through the filing process.

If you're looking for a full payroll solution that handles W-2s, tax filing, and benefits all in one place, you might want to check out Gusto instead-it's a more comprehensive platform for businesses that need ongoing payroll management beyond just 1099 filing. See our Gusto pricing breakdown for details.

For businesses seeking an all-in-one CRM solution to manage client relationships alongside tax filing, consider exploring Close for comprehensive contact management and communication tracking.