Efiling 1099s 2021

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#1
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I'm considered using a service (efilemyforms.com for example) for 2021 and am not sure how the process works. In the past, with manually-prepared 1099s, the Form 1096 was signed and dated by the client and then mailed by them.

Who does the signing with an efiled Form 1096 and how is that accomplished? Is there a separate IRS form the client needs to sign?

I can envision a client complaining at a future date they didn't approve the 1099s or amounts therein and why did I go ahead and efile their 1099s.
 

#2
CathysTaxes  
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Efilemyforms.com automatically creates a 1096 in pdf format. Once you hit submit, it assumes that the forms were approved.
Cathy
CathysTaxes
 

#3
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North Carolina
Interesting, I have been looking into this as well now that NC is requiring W-2's/1099's to be efiled. I have only been able to find this on the W-3 instructions:
Who may sign Form W-3. A transmitter or sender
(including a service bureau, reporting agent, paying agent,
or disbursing agent) may sign Form W-3 (or use its PIN to
e-file) for the employer or payer only if the sender satisfies
both of the following.
• It is authorized to sign by an agency agreement
(whether oral, written, or implied) that is valid under state
law; and
• It writes “For (name of payer)” next to the signature
(paper Form W-3 only).
Use of a reporting agent or other third-party
payroll service provider does not relieve an
employer of the responsibility to ensure that
Forms W-2 are furnished to employees and that Forms
W-2 and W-3 are filed with the SSA, correctly and on time.

Seems we can make up our own agreement and have client sign to keep in our records. Curious what others do. I certainly would not want to submit anything without written authorization.
 

#4
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Thank you CathysTaxes and SeasideCPA. Drip, drip, drip...one more form for us to prepare/update, print and have the client sign.

I'm assuming that "efilemyforms.com" is the transmitter. If so, what are we...the preparer? Looks like I'd want my name and the transmitter's website to be on the written authorization form the client signs.
 

#5
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North Carolina
Maybe the Reporting Agent? I did find Form 8655, which is a reporting agent authorization. This form is for 940's, 941's, etc. Seems like it should have W-2' and 1099's on there also, but it does not.
 

#6
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I like https://www.track1099.com/ for efiling 1099s. You can import 1099 data with an excel template they provide, so it scales very well.

They also don't ask about authorization.

You could make an efile authorization template on your end and require clients to sign or esign before you press the button to efile their 1099s.
 

#7
TrueTax  
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I typically ask my clients for approval by e-mail to file their 1099s, but haven't implemented a specific form for it. Once I got set up as a transmitter, it was so much easier than messing around with aligning the printing on the official red forms and then mailing them to the client for signature.
 

#8
Keyad22  
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Bay Area, California
ManVsTax wrote:I like https://www.track1099.com/ for efiling 1099s. You can import 1099 data with an excel template they provide, so it scales very well.

They also don't ask about authorization.

You could make an efile authorization template on your end and require clients to sign or esign before you press the button to efile their 1099s.


I like track1099 too.
 

#9
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USA
I usually send a copy of the Form 1099 to my clients for their review and request a confirmed email that the information is correct after they have reviewed. I will then keep a copy of the email for my record.

Have I done enough or should I ask them to sign an official authorization form before I e-file for them?
 


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