Tax1099 Reviews: Is It Worth Using for 1099 E-Filing?

Tax1099 is one of the most widely-used IRS-authorized e-filing platforms for 1099 forms, W-2s, and other tax documents. Over 500,000 businesses trust it for their filings, and it's won awards like the Accountex User Favorite and FinTech Breakthrough Award for Best 1099 Tax Software.

But awards don't tell the full story. I dug through hundreds of user reviews across Capterra, Trustpilot, GetApp, Slashdot, and Software Advice to give you the real picture-what works, what doesn't, and whether Tax1099 is right for your business.

What Tax1099 Does

Tax1099 is an IRS-authorized e-filing platform powered by Zenwork, Inc., founded in 2010. The platform handles 1099 forms (NEC, MISC, INT, K, DIV, R, S, and more), W-2s, 940/941/944/945 payroll forms, ACA forms, and state filings. The platform integrates with QuickBooks Desktop, QuickBooks Online, Xero, Bill.com, FreshBooks, Sage Intacct, NetSuite, Zoho Books, Tipalti, Entrata, and more.

Core features include:

• Bulk upload capability for thousands of forms at once
• Real-time TIN matching against IRS database (typically within 5 seconds for interactive, 24 hours for bulk)
• USPS address validation
• 256-bit bank-grade encryption
• Combined Federal/State Filing (CF/SF) support
• Print and mail services for recipient copies
• Free electronic delivery to recipients ($0.25 per form for IRS-compliant eDelivery portal)
• Team management and user access controls
• Four years of secured data storage
• API integration for high-volume automation
• W-9/W-8 form collection with e-signatures
• Audit trails and workflow management

The three-step e-filing process is genuinely simple: select your form and enter details, verify accuracy, and submit to the IRS. You get real-time status updates as your submissions are processed.

Tax1099 Pricing (Updated for 2026)

Tax1099 uses a pay-per-form model without forcing you into bundles-you only pay for what you need. Based on current pricing, here's the detailed breakdown:

In addition to pay-per-form pricing, Tax1099 offers three subscription tiers:

Additional service costs:

• TIN Matching: $1 per real-time TIN match, $0.37 per unit for bulk matching (up to 10,000 records), or $150 for 10,000 records bulk package
• Print and Mail: $1.90 per form (U.S. domestic), $4.99 per form (international)
• IRS-Compliant eDelivery Portal: $0.25 per form
• State Filings: Additional fees for non-CF/SF participating states

For context, payroll forms like 940/941 start at around $1.34 per form. The tiered pricing model lets you scale without committing to a bundle you don't need, but the pricing schedule can be confusing for first-time users, and some reviewers have reported unexpected costs from software errors or duplicate submissions.

TIN Matching Features Explained

One of Tax1099's standout features is its comprehensive TIN (Taxpayer Identification Number) matching service. TIN matching helps businesses avoid IRS penalties by verifying vendor information before filing. The IRS can impose penalties of up to $100 per TIN mismatch and issue CP2100 or CP2100A notices (B-Notices) when name/TIN combinations don't match their records.

Tax1099 offers three TIN matching options:

Real-time TIN Matching: Submit up to 25 name/TIN combinations at a time and receive responses within 5 seconds. This costs $1 per match and is ideal for onboarding new vendors or contractors.

Bulk TIN Matching: Upload files with up to 10,000 name/TIN combinations and receive results within 24 hours. The bulk option costs $0.37 per unit or $150 for 10,000 records, making it cost-effective for large-scale verification.

API Integration: For businesses with extensive vendor lists, Tax1099 offers a TIN matching API that automates the entire validation process. The API team accesses your vendor data, conducts matching, and sends real-time updates. They also automatically send W-9 request emails to vendors with incorrect information.

The TIN matching system validates entries against both IRS and Social Security Administration databases, providing numerical response indicators for each match request. If rejected, you can follow up with vendors to collect correct data before filing, avoiding costly penalties.

What Users Love About Tax1099

Based on reviews across multiple platforms, here's what works:

Ease of Use: The platform is consistently described as user-friendly with a clean interface. One reviewer noted it's "not one of those apps that makes you want to pull your hair out." Data entry is straightforward, the software provides clear error messages when something's missing, and the form layout resembles paper forms that users are familiar with.

Integration Quality: The QuickBooks integration is particularly well-reviewed. Users can export data directly from their accounting software, upload via Excel templates, and avoid manual data entry. The integration with Xero, Bill.com, NetSuite, and other platforms also gets praise. One user specifically mentioned that the Xero integration "worked beautifully by allowing us to save many hours of data entry."

Recipient Management: Prior year vendors are saved automatically, reducing data entry for repeat filers. You can copy recipients across multiple payers-useful for accounting firms or holding companies managing multiple entities. The system maintains four years of secured data storage, making historical lookups easy.

Pay-Per-Use Flexibility: Unlike competitors with bundled pricing, Tax1099 lets you pay only for what you file. One reviewer called it a "win win" for firms with unpredictable filing volumes. The tiered model means you automatically get lower per-form costs as your volume increases without needing to change plans.

Electronic Delivery: Emailing 1099s to recipients is available through the platform, which saves on mailing costs. You can also use postal mail through the platform at $1.90 per domestic form. The recipient portal option provides secure online access to forms.

Multi-Form Support: Unlike some competitors that specialize in just 1099s, Tax1099 handles W-2s, payroll forms (940, 941, 944, 945), ACA forms (1095-B, 1095-C), and even specialized forms like 1042-S, making it a one-stop solution for various compliance needs.

What Users Complain About

And now the stuff Tax1099 doesn't want you to see in their marketing:

Customer Support Issues: This is the #1 complaint across review sites. Multiple users report that support has deteriorated over time. Live chat has been replaced with AI chat support that, according to one long-term user, "has yet to help me troubleshoot any problems." Phone support is reportedly difficult to access, and email responses are often generic. One reviewer on Slashdot stated: "Now, the only chat to speak of is an AI chat support, which has yet to help me troubleshoot any problems we are experiencing."

During peak tax season (January-February), support becomes especially problematic. Users report waiting days for responses and being unable to reach a live person when time-sensitive issues arise. One Capterra reviewer mentioned: "Every request for a phone call is ignored." However, it's worth noting that a smaller number of reviewers found customer service "friendly and helpful," suggesting inconsistent experiences.

Bugs and Reliability: One long-term user on Software Advice described it as "the most unreliable and buggy system I've ever used." Specific complaints include login issues late at night, address validation bugs, and confusing error messages about EINs. Several reviewers mentioned that the platform can get "extremely slow" during peak filing periods, with websites timing out when submitting multiple clients close to a deadline.

Navigation issues include problems with the "Modern View" versus "Classic View"-multiple users reported that clicking "edit" in Modern View created a new form instead of editing the existing one, resulting in duplicate charges.

Data Integrity Problems: The most alarming reviews involve data corruption. One user reported that a site crash corrupted 2,800 recipient records, with Business Names becoming First Names, First Names becoming Last Names, and Last Names becoming Business Names. This caused every single 1099 over five years to fail TIN matching, resulting in $35,000+ in legal fees battling IRS penalties over several years.

Another user mentioned that the Social Security Administration had issues with W-2 submissions through Tax1099 in 2023, though Tax1099 has since announced that W-2 filing issues have been "fully resolved" and systems are "fully operational."

Navigation Quirks: Some users find copying vendors between payers cumbersome. The input fields for entering recipient info have been criticized-clicking on the SSN/EIN field doesn't position the cursor correctly, which becomes annoying when processing hundreds of forms. Users also report that making corrections can be "confusing" or "impossible" without support help.

Form Status Delays: Several users reported forms stuck in "pending" status for extended periods with poor communication about why. One reviewer mentioned forms stuck in "submitted" (not "accepted") status for over four weeks with no clear explanation or resolution.

Interface Changes: Users who have been with the platform for years note that interface changes (like the Modern View update) sometimes break existing workflows and require relearning processes, which is frustrating during busy tax season.

Tax1099 Security and Compliance

Tax1099 takes security seriously with several measures in place:

• 256-bit encryption: All data transmissions use bank-grade encryption
• Two-factor authentication (2FA): Available for enhanced account security
• Audit trails: All form changes are tracked and logged
• IRS authorization: Tax1099 is an official IRS-authorized e-file provider with a valid software identification number
• Data validation: The platform uses IRS business rules, basic form validation, and IRS Schema checks
• Secure data storage: Four years of secured historical data

The platform is designed to be compliant with IRS regulations and supports Combined Federal/State Filing programs. However, the data corruption incidents mentioned in reviews raise questions about backup and recovery procedures.

Tax1099 vs. Alternatives

How does Tax1099 stack up against competitors?

Compared to TaxBandits, Tax1099 offers similar pricing but has more integration options (12+ vs. fewer). However, TaxBandits has a better reputation for customer support with phone, email, and live chat access. TaxBandits also offers a "Bandit Commitment" that includes corrections and retransmissions in the filing fee.

1099Online is slightly cheaper at low volumes and offers free re-filing for rejected forms, which Tax1099 also provides. However, Tax1099 has more advanced features like workflow management and API access.

Avalara 1099 (formerly Track1099) charges $0.45 per TIN match versus Tax1099's $1 per real-time match, making it more cost-effective for high-volume TIN verification. Avalara also has stronger automation capabilities but may have a steeper learning curve.

If you're pulling data from QuickBooks, Xero, or NetSuite and need enterprise-level features like role-based access and bulk TIN matching, Tax1099 is a solid choice. If you're a small filer doing 5-20 forms once a year and need responsive support, alternatives like TaxBandits or 1099Online might serve you better.

Tax1099 for Different Business Types

Accounting Firms and CPAs: Tax1099 is particularly well-suited for accounting professionals managing multiple clients. The Teams ($249/year) and Scale ($349/year) plans allow you to add member users, share payers across team members, and set up workflow management for form review before submission. The ability to manage multiple EINs from a single dashboard is a major time-saver.

Small Businesses (1-50 contractors): For small businesses with modest filing needs, the Essential plan with pay-per-form pricing works well. At $2.99 per form for 1-20 forms, it's competitive but not the cheapest option. The QuickBooks integration is valuable for small businesses already using QuickBooks for accounting.

Mid-Size Businesses (50-500 contractors): This is Tax1099's sweet spot. At 151-500 forms, you're paying $1.31 per form, which is competitive. The integration capabilities, TIN matching, and automation features justify the cost at this volume.

Enterprise (500+ contractors): Large enterprises benefit from custom pricing at 1000+ forms and can leverage the Scale plan's API access for full automation. The bulk TIN matching at $0.37 per unit becomes very cost-effective at scale.

Real Estate and Property Management: The Entrata integration is specifically designed for property management companies. Tax1099 handles 1099-MISC for rental payments and other real estate transactions efficiently.

E-commerce and Gig Economy Platforms: Companies paying large numbers of contractors or sellers benefit from the API integration, which can automate the entire filing workflow and sync with existing systems.

Common Tax1099 Questions Answered

Can Tax1099 handle state filings? Yes. Tax1099 supports both Combined Federal/State Filing (CF/SF) for participating states and direct state submissions for non-participating states. However, direct state filings may incur additional fees.

What happens if my form is rejected? Tax1099 allows you to resubmit IRS-rejected forms at no additional cost. You simply make the necessary corrections and resubmit within 30 days. However, some users report that the software doesn't always clearly explain why forms were rejected.

Can I file previous year returns? Yes, Tax1099 supports prior year filings for up to four years. This is helpful if you've recently onboarded clients who need to catch up on past filings.

How long does IRS approval take? Most forms are processed within 24-48 hours. However, during peak season (late January to early February), processing can take longer. Some users report delays of 4+ weeks, though these appear to be exceptions rather than the norm.

Does Tax1099 offer phone support? This is a contentious issue. Official information suggests phone support is available with certain plans, but numerous reviews indicate that phone support is difficult or impossible to access. The platform has moved primarily to AI chat and email support, which many users find inadequate.

Tips for Getting the Most Out of Tax1099

If you decide to use Tax1099, here are some strategies to avoid common problems:

Start early: Don't wait until the January 31st deadline. Begin setting up your account and importing data in December to avoid peak-season slowdowns and support delays.

Test with a small batch first: Before uploading hundreds of forms, submit a test batch of 5-10 forms to ensure your data imports correctly and identify any formatting issues.

Use TIN matching proactively: Run bulk TIN matching in November or early December, well before the filing deadline. This gives you time to collect corrected W-9 forms from vendors with mismatches.

Export and backup regularly: Given the data corruption incidents reported by some users, maintain your own backups of all vendor and form data outside the Tax1099 platform.

Document everything: If you encounter issues, screenshot error messages and save all email correspondence. This documentation can be valuable if you need to dispute charges or resolve IRS penalties.

Use Classic View for stability: If you encounter bugs in the Modern View, switch to Classic View, which users report has fewer glitches.

Avoid last-minute filing: The platform reportedly slows down significantly as deadlines approach. Aim to submit forms by January 25th rather than waiting until January 31st.

Tax1099 Pricing Comparison Calculator

To illustrate how Tax1099 pricing compares at different volumes, here's a breakdown of total costs:

Note: These calculations use base per-form pricing only and don't include additional services like TIN matching, print/mail, or subscription fees. Tax1099 becomes more competitive at higher volumes (500+).

Who Should Use Tax1099

Good fit for:

• Accounting firms managing multiple clients and entities who need workflow management
• Businesses already using QuickBooks, Xero, NetSuite, or other supported accounting software
• Companies with 100+ forms per year who can benefit from automation and integrations
• Organizations requiring team access controls with multiple user permissions
• Anyone filing multiple form types (1099-NEC, MISC, W-2s, payroll forms) in one platform
• Tech-savvy users comfortable troubleshooting issues independently
• Businesses with development resources to leverage API integration

Not ideal for:

• Businesses with only a handful of 1099s to file (5-20 forms)
• Anyone who needs responsive phone support during tax season
• Users uncomfortable with occasional bugs and workarounds
• High-stakes filers who can't afford any data integrity issues
• First-time filers who need hand-holding through the process
• Businesses requiring guaranteed same-day support responses

The Tax1099 User Experience Journey

Based on user reviews, here's what the typical experience looks like:

Year 1 (Setup): Users generally find the initial setup straightforward. Connecting accounting software takes 15-30 minutes. Importing the first batch of vendor data works smoothly for most users. The interface is intuitive enough that most people complete their first filing without needing support. Satisfaction is typically high in Year 1.

Year 2-3 (Established Users): Returning users appreciate that prior year data is saved. The filing process becomes faster-many report completing their annual filing in under an hour. These are the users who leave positive reviews praising the platform's reliability and ease of use.

Year 4+ (Long-term Users): This is where experiences diverge. Some long-term users remain happy and continue year after year. Others-particularly those on Slashdot and Software Advice-report growing frustration with declining support quality, accumulating bugs, and interface changes that break familiar workflows. The most negative reviews come disproportionately from users who've been on the platform for 5+ years.

Problem Users: When things go wrong (data corruption, unexplained rejections, billing errors), users report that resolving issues is extremely difficult due to poor support responsiveness. These users often switch to competitors out of frustration.

Recent Tax1099 Updates and Improvements

Tax1099 has made several improvements based on user feedback:

• AI Chat Assistance: Available 24/7, though reviews suggest it needs improvement in actually solving problems
• Smart eFiling with AI: Automated categorization of payees and eligible payments
• Scheduled eFiling: Allows users to prepare forms in advance and set automatic submission dates
• W-2 Filing Resolution: The platform announced that W-2 filing issues with the Social Security Administration have been fully resolved
• Streamlined Dashboard: A redesigned interface rolled out recently (though the Modern View has mixed reviews)
• User Training Sessions: Tax1099 now offers training webinars in November to help users prepare for tax season

The Bottom Line

Tax1099 is a capable, feature-rich platform that handles 1099 e-filing well for most users. The integrations are strong, the pay-per-form model is fair, and the core filing process is straightforward. At volumes of 100-1000 forms per year, it offers good value, especially if you're using supported accounting software.

However, the customer support issues are real, and the reports of data problems-while not universal-are concerning enough that you should have a backup plan during tax season. Export your data regularly, double-check everything before submitting, and don't wait until the last minute when support queues are longest and the platform is most likely to experience slowdowns.

For most businesses doing volume 1099 filing with accounting software integration needs, Tax1099 is worth trying-just go in with realistic expectations about support responsiveness. The platform works best for self-sufficient users who don't need much hand-holding.

If customer support is a top priority, or if you're filing fewer than 50 forms per year, explore alternatives like TaxBandits (better support) or 1099Online (lower cost at small volumes) before committing to Tax1099.

Alternatives to Consider

Beyond the competitors already mentioned, here are additional platforms worth evaluating:

eFile4Biz: An IRS-approved provider offering all-inclusive print, mail, and e-file services starting at $1.50 per form. Good for users who want a hands-off approach where the provider handles most of the work.

Yearli (1099 Pro): Offers both cloud ($449/year) and desktop ($389 one-time) options. The desktop version appeals to users who prefer local data storage. Includes comprehensive print-and-mail services.

Drake Software: A professional-grade solution used by 70,000+ tax professionals. More expensive but offers integrated tax return preparation beyond just information returns.

Each platform has tradeoffs in pricing, features, and support quality. The right choice depends on your specific volume, technical comfort level, and support needs.

Related: More Payroll and Tax Software

If you're also evaluating payroll solutions for W-2 employees (not just 1099 contractors), check out our best payroll software for small business roundup. We also have detailed reviews of Gusto, including Gusto pricing breakdowns and comparisons like Gusto vs ADP and Gusto vs Paychex.

For businesses looking to streamline contractor payments alongside 1099 filing, consider exploring Gusto's contractor payment features, which integrate payment processing with automatic 1099 preparation.