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, Oracle NetSuite, Tipalti, Entrata, and CustomBooks. You can also import data via CSV/Excel, PDF import for W-9s, or use their REST API for automation.

Founded in 2010 by Zenwork Inc., Tax1099 was built to simplify e-filing and eliminate the frustration of complex tax compliance, high costs, and cumbersome paper filing methods. The platform now supports over 40 different IRS forms and handles state filings for all 50 states according to each state's specific requirements.

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)

Teams Plan ($249/year)

Scale Plan ($349/year)

Additional Service Fees

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. This makes Tax1099 competitive with alternatives like 1099Online (as low as $0.69 per form for 1000+ forms) and Track1099 (starting at $3.10 per form).

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, 1099-B, 1099-C, 1099-S, 1099-Q, 1099-G, W-2, W-2C, 940, 941, 941-X, 943, 944, 945, 1095-B/C, 1094-B/C, 1042-S, 1098, 1098-T, 5498, Form 3921, Form 3922, and more. State-only filing is also available for non-participating Combined Federal/State Filing (CF/SF) states.

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. Given that IRS penalties for incorrect TINs range from $60 to $680 per form, TIN matching can save businesses thousands in potential penalties. The IRS sends CP2100/CP2100A notices for TIN mismatches, requiring you to implement 24% backup withholding if errors aren't corrected within 30 days.

Integrations

The platform connects with QuickBooks Desktop, QuickBooks Online, Xero, BILL, Oracle NetSuite, FreshBooks, Sage Intacct, Zoho Books, Tipalti, Entrata, CustomBooks, and Apex Technologies. Tax1099 is Intuit's preferred partner for QuickBooks Desktop 1099 e-filing. You can also import via CSV, Excel, PDF import for W-9s, or SFTP for enterprise automation. The two-way data sync with BILL is particularly useful, allowing you to sync edits back to your source data.

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. You can manage the filing process by adding users to perform different tasks, such as data entry, review, form approval, form submission, or any combination of tasks. This facilitates smooth collaboration among users while upholding data security and separation of duties.

Scheduled Filing

Prepare forms in advance and schedule them for future submission. Reschedule or update information at no extra cost before transmitting. The platform recommends scheduling submissions at least two weeks before deadlines to ensure compliance.

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. The platform has implemented USPS intelligent barcodes on all mailed forms, allowing real-time tracking and transparency on mail location and delivery status through your online account.

Security

256-bit bank-grade encryption, TIN masking, two-factor authentication (2FA), and annual SSAE-21 Type II audits. They also meet GDPR standards and support HIPAA compliance with signed BAA on eligible plans. The platform takes data security seriously, handling extensive Personal Identifiable Information (PII) and confidential business data with top-tier protection.

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. Multiple user reviews mention the AI chatbot isn't always helpful for technical problems.

Understanding 1099-NEC Filing Requirements

Before diving deeper into Tax1099's capabilities, it's worth understanding what triggers 1099 filing requirements. Businesses must file Form 1099-NEC when they pay $600 or more to independent contractors, freelancers, or non-employees during the tax year. This applies only to payments made in the course of trade or business, not personal payments.

The filing deadline for 1099-NEC is February 2 (when January 31 falls on a weekend). Unlike most 1099 forms, the 1099-NEC has a unified deadline-both the IRS copy and recipient copy must be filed or postmarked by the same date. This tight deadline makes reliable e-filing software essential.

You'll need specific information before filing: your business's legal name (as registered with the IRS), EIN, business address, and contact details, plus each recipient's legal name, TIN (SSN or EIN), address, and total compensation paid. Collecting W-9 forms from contractors early helps ensure you have correct information.

IRS Penalties: Why Accuracy Matters

The IRS imposes escalating penalties for late or incorrect 1099 filings. For current tax years, penalties range from $60 to $330 per form depending on how late you file. If you file within 30 days of the deadline, it's $60 per form. File 31 days to August 1, and it's $130 per form. After August 1, the penalty jumps to $340 per form.

For intentional disregard of filing requirements, the penalty is $680 per form with no maximum cap. These penalties also accrue monthly and compound with interest until paid in full.

Small businesses (those with average annual gross receipts of $5 million or less over the three most recent tax years) have reduced maximum penalties, but the per-form amounts remain the same. Even with the small business cap, penalties add up fast when you're filing dozens or hundreds of forms.

Incorrect or missing TIN information triggers additional problems. The IRS may send a CP2100/CP2100A notice requiring you to request corrected W-9 forms from recipients. If recipients don't provide correct information within 30 business days, you must begin backup withholding at 24% on all future payments.

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. The two-way sync with BILL is particularly useful for accounting firms.

Bulk processing: If you're filing hundreds or thousands of forms, bulk upload via Excel/CSV and bulk TIN matching are game changers. You can upload extensive data directly and validate large volumes of TINs in a single process.

Flexible pricing: No forced bundles. Pay for what you use. The pay-as-you-go model works well for seasonal filers. The tiered volume discounts mean you save more as you file more forms.

Form variety: One platform for 1099s, W-2s, payroll forms, and ACA reporting. Less tool-hopping. Over 40 form types supported means you can handle most federal and state tax filing requirements in one place.

Four years of data storage: Access historical forms without digging through old files. This makes corrections and audits much easier.

Affordable electronic delivery: The $0.25 per form eDelivery option saves on mailing costs compared to $1.90 for print and mail.

No subscription required: The Essential Plan has no annual fee, so you're not paying for software you only use once a year.

Corrections at no extra cost: If your returns are rejected by the IRS for inaccuracies or inconsistencies, tax experts help resolve conflicts and help you e-file corrected returns at no additional cost.

What Sucks About Tax1099

Customer service during peak season: Multiple user reviews mention difficulty reaching support when it matters most-during tax filing deadlines. Common complaints include long wait times, unresponsive email support, and lack of phone support. One reviewer mentioned forms pending for over 10 months with minimal communication. The AI chat isn't always helpful for complex issues, and getting through to a human can be challenging.

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. Don't forget the rush-hour fee ($1 extra per mail) during the final 5 days of filing season. 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 users report bugs, navigation issues, and difficulty making corrections. The platform has both a modern view and classic view, which can be confusing.

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. The user described a scenario where recipient records got corrupted during a site crash, causing every 1099 filed over five years to fail TIN matching. 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. Some users report forms stuck in submitted status for weeks without being accepted. If W-2 filing is your primary need, research this thoroughly.

Limited phone support: Multiple reviews mention the lack of a phone number to call during urgent situations. This is particularly problematic during peak season when email response times stretch out.

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 (1-10 returns) and $0.70 for state filing. The pricing drops to $0.80 per form for 500+ forms. TaxBandits also offers a premium subscription at $699/year. Similar feature set, but TaxBandits has a slightly different subscription model. Tax1099 generally offers stronger accounting software integrations (including Intuit partnership for QuickBooks), 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). Pricing starts at $3.49 per form for 1-10 forms and drops progressively. 1099Online is simpler and more affordable for straightforward filing, but Tax1099 offers deeper integrations and enterprise features like workflow management and notice handling.

Tax1099 vs. Avalara (Track1099)

Avalara offers pricing starting around $3 per form at volume, with tiered discounts. The first 15 forms cost $3.10 each, forms 16-165 cost $2.30, and forms 501+ drop to $0.63 each. Track1099 appeals to tech-savvy teams with its API-first system and REST API with up to 5,000 calls/month. 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 and broader no-code integrations (12+ platforms).

Tax1099 vs. IRS IRIS (Free)

The IRS IRIS portal is free but manual. You can file up to 100 returns at once using the Taxpayer Portal or use the Application to Application (A2A) method for larger volumes (up to 100 MB at a time). However, there are no integrations, no bulk TIN matching, and no automated error checking. You'll also need a Transmitter Control Code (TCC). Fine for 3-5 forms. Painful for anything more. The time savings from automation typically justify the cost of paid platforms.

State Filing Considerations

Tax1099 handles state filing through the Combined Federal/State Filing (CF/SF) program for participating states, transmitting your federal e-file to the state at no extra cost. Over 30 states participate in CF/SF.

However, some states like California, Pennsylvania, Oregon, New Jersey, Michigan, and Louisiana don't participate in CF/SF and require separate state filing with direct XML uploads. Tax1099 supports direct state e-filing for these non-participating states.

State filing deadlines vary. Most states follow the federal deadline (February 2 for 1099-NEC), but some have different requirements. Always confirm state-specific deadlines to avoid dual-agency penalties.

Who Should Use Tax1099?

Good fit:

Not ideal for:

How to File 1099-NEC with Tax1099

The filing process is straightforward:

  1. Create your account: Sign up for free on Tax1099.com. No credit card required to start.
  2. Select the form: Choose 1099-NEC and tax year from the dashboard.
  3. Enter or import data: Manually enter payer and recipient details, or import from QuickBooks, Xero, Excel/CSV, or other supported platforms.
  4. Validate information: Use TIN matching to verify recipient data against IRS records before filing. This prevents costly CP2100 notices.
  5. Review and verify: Check all information for accuracy. The platform performs automatic error checking using IRS business rules and schema validation.
  6. Submit: E-file directly to the IRS and forward to applicable states via CF/SF. You'll receive immediate confirmation after successful submission.
  7. Deliver recipient copies: Choose eDelivery ($0.25), print & mail ($1.90), or download PDFs to distribute yourself.

You can also schedule your e-file in advance, ensuring forms reach the IRS at least two weeks before the deadline.

Best Practices for 1099 Compliance

Based on IRS requirements and platform capabilities, follow these practices:

Collect W-9 forms early: Request W-9 forms from all contractors before making the first payment. This ensures you have correct TIN and name information from the start. Tax1099 allows you to request and collect W-9/W-8 forms electronically.

Validate TINs upfront: Use real-time TIN matching throughout the year, not just at filing time. The year-round TIN match feature helps catch errors early when they're easier to fix.

Maintain accurate records: Keep detailed records of all payments, payee information, and W-9 forms. The IRS requires you to keep copies of information returns for at least 3 years (4 years for Form 1099-C) from the due date.

File corrections promptly: If you discover errors after filing, submit corrections immediately. The sooner you fix mistakes, the lower potential penalties. Tax1099 offers unlimited corrections at no extra cost for rejected returns.

Don't wait until the deadline: File at least 1-2 weeks early to avoid last-minute technical issues and allow time for corrections if forms are rejected.

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.

The platform works best for mid-sized businesses, accounting firms, and enterprises that need robust features like workflow management, API access, and multi-user collaboration. If you're filing 50+ forms annually and use QuickBooks, Xero, or NetSuite, the integration value is significant.

For businesses primarily focused on W-2 filing, proceed with caution and verify current SSA submission reliability. If you need responsive phone support during peak season, consider whether Tax1099's primarily email-based support will meet your needs.

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 (including TIN matching, delivery, and any add-on services), test the platform before peak season, and have a backup plan for customer support during crunch time.