Information returns, such as Forms 1099-NEC, 1099-MISC and W-2, report payments you made to others. For years only large filers had to submit them electronically. Under current rules, a business that files 10 or more information returns in total during a calendar year generally must file them electronically.

How the 10-return count works

The threshold is aggregate: it counts most information return types together, including W-2s and 1099s. A business with seven employees and four contractors files 11 returns and must e-file both W-2s and 1099s. The IRS explains the rule on its page about e-filing information returns. Waivers are available in limited hardship cases.

Options for e-filing

  • IRIS, the IRS Information Returns Intake System, a free online portal for Forms 1099 that lets businesses key in or upload returns
  • Payroll or accounting software that files 1099s on your behalf
  • Third-party filing services
  • SSA Business Services Online for Forms W-2

IRIS requires a Transmitter Control Code, which takes time to obtain, so apply well before January.

Deadlines

Forms 1099-NEC are generally due to recipients and the IRS by January 31. Most other 1099 forms have a January 31 recipient deadline and a later filing deadline with the IRS, which is extended for electronic filing. See our Form 1099-NEC basics guide for details.

Recipient copies

Recipients can receive copies electronically only if they have consented. Otherwise, mail paper copies by the deadline.

Corrections

Errors are corrected by filing corrected returns, electronically if the original was e-filed. Correcting quickly reduces penalties, which increase the later a correct return is filed.

Preparing the data

E-filing is easy when the data is clean. Throughout the year we:

  1. Collect a Form W-9 from each vendor before the first payment
  2. Flag 1099-eligible vendors and their box type in the accounting system
  3. Exclude payments made by card or payment networks, which are reported by the processor
  4. Run a 1099 report in early January and review it with you

State filing

Many states participate in the Combined Federal/State Filing Program; others require separate state filings. Check your state revenue agency, linked from our state guides.

Preparing for an e-filing season

  1. Clean vendor data in the fall. Confirm names and TINs against W-9s. Mismatches are the most common cause of IRS notices about information returns.
  2. Decide how you will file. Options include payroll or accounting software that files for you, a third-party filing service, or the IRS's own Information Returns Intake System for Forms 1099.
  3. Check state requirements. Some states require copies of 1099s or W-2s; some participate in the Combined Federal/State Filing Program.
  4. Furnish recipient copies on time. Recipient deadlines can differ from IRS filing deadlines.
  5. Keep confirmation records. Save acceptance acknowledgments with your tax records.

Counting returns toward the e-file threshold

The threshold generally counts most information return types together, including W-2s and 1099s, so a business with a handful of employees and contractors can easily cross it. Check the current rules in the General Instructions for Certain Information Returns before assuming paper filing is permitted.

Corrections

Corrected forms are generally filed the same way as originals. Track corrections so the recipient and IRS records agree.