Find FAQs related to 1099 Forms/endpoints, 1099 transactions, Postal Mailing and Online Access.
1. How can I delete all the records in a Submission and what happens if I delete all the records in a particular submissionId in the API?
Use Delete endpoint to delete a particular form or multiple forms under a submission. If you pass only the SubmissionId in the API call, all the forms under the submission will be deleted. You can only delete forms with “CREATED” status. Forms with statuses “TRANSMITTED”, “SENT TO AGENCY”, or “ACCEPTED” cannot be deleted.
2. How to review the Inprogress 1099 form?
Use RequestDraftPdfUrl to return the Draft PDF for review purposes. This method can be used to get the PDFs of the forms that are not transmitted and will have a watermark "For Review only" on it.You can only retrieve PDFs of a single record/form using this method.Provide the RecordId in the request, and the URL of the Inprogress record will be returned in the response.
3. How to edit 1099 information for a single record?
Use Update method to change an existing Form 1099 information created in TaxBandits. To update, pass the SubmissionId and RecordId of the form along with the corrected data. A Transmitted return cannot be modified.
4. Is it possible to retrieve 1099 PDFs for multiple recipients?
Use RequestPDFURL method to retrieve PDFs for single or multiple recipients under the same submissionId. To do this, pass the SubmissionId and TINMask Type in the Request header. Based on the TINMask type provided in the request, response will generate the PDF URL by masking or unmasking the TIN. The URLs will be returned in response only after the return is transmitted in the API. This method will not work for Inprogress returns.
5. How to error-check 1099 forms before transmitting to the IRS?
Use ValidateForm method to validate the field level specifications of form 1099 before creating the form. This method is optional as the validations can be done even after creating the form.
After creating the form, use Validate method to perform business and data validation checks on the 1099 forms generated by the API. Use the Submission ID and Record IDs of the return to validate.
6. Is there a way to mask the recipient's TIN on 1099s?
Yes. You can use the TIN masking option available to mask the recipient TINs and view/download 1099s more securely. Choose the masking type of your Recipient's TIN on the 1099s as MASKED - The Recipient's TIN will be masked in the PDF. Only last 4 digits of the TIN can be read.
7. How do I select more states to report for recipients in 1099-MISC?
As of now, TaxBandits allows you to report information for up to two states in a single 1099-MISC form. In case of additional states, you need to file another 1099-MISC for the recipient.
8. How to give 1099 Online Access for my recipients?
Online Access will be enabled when the value IsOnlineAccess boolean value is set as True. Once the return is Transmitted, an email with the link to the secure TaxBandits portal will be sent to the Recipient. The recipient can provide consent and download Form 1099-MISC Recipient copies from the portal.
9. How do we create 1099s for recipients using TaxBandits API?
Form1099Transactions endpoint is used to send payments to each recipient. TaxBandits will be able to generate reports for all payments made by payers to recipients. You can utilize our 1099 endpoints to generate and file Form 1099 for the recipients who are eligible to receive it at the conclusion of the tax year.
Once the 1099s are generated, you will receive a webhook notification from TaxBandits. To receive the webhook, you should have configured the Webhook URL inside the console site by Navigating to Settings >> Webhooks >> Add Webhook >> Event Type: Form 1099 Auto-Generation.
10. How to enable Online Services for a recipient to recieve 1099?
To enable the online services for Form W-2 or 1099NEC in API, set the boolean value as True for IsOnlineAccess. Once the return is Transmitted, an email with the link to the secure TaxBandits portal will be sent to the Recipient. The recipient can provide consent and download Form 1099-NEC Recipient copies from the portal.
11. We would like our clients to review the 1099s of their vendors before they are transmitted to the IRS. How do we do that?
Once your affiliate completes and submits Form W-9 or W-8BEN, you can generate a URL through the merchant endpoint. Through the URL, the recipient can login into your merchant portal, where recipients will be able to download the completed W-9, as well as view or update the 1099 generated for that affiliate.
12. We have transaction details of payments made to vendors. Is it possible to use these to generate 1099s for them?
Form1099Transactions endpoint is used to send payments to each recipient. This API can be triggered as many times in a tax year. TaxBandits will be able to generate reports for all payments made by payers to recipients. You can utilize our 1099Transaction endpoints to generate and file Form 1099s for the recipients who are eligible to receive it at the conclusion of the tax year.
13. How do we use TaxBandits API services to issue 1099s for the payments made to our vendors?
To generate 1099s, you need vendor details such as Name, TIN, and address along with details of payments made to the vendor during the tax year. Also, the IRS mandates payers to maintain signed copies of Forms W-8BEN and W-9 depending on whether they are foreign individuals or not.
Here’s what you can do:
- Have recipients fill in their W9 / W-8BEN information, e-sign, and submit the form. You can accomplish this with APIs FormW9, FormW8BEN, or WhCertificate.
- Match TIN entered by recipients against the IRS database. This helps avoid hefty penalties from filing invalid 1099 Forms. You can request TIN matching when W9 information is submitted by recipients or later using TINMatchingRecipients API.
- Track payments made to vendors using Form1099Transactions API.
- Generate 1099s using Form1099MISC or Form1099NEC APIs.
Do note that when you create forms using the TaxBandits API, we allow access to these forms through the TaxBandits application. Use your API credentials to sign-in to your TaxBandits account. You can also create forms directly in the TaxBandits application that will be available through the API.
14. How to download 1099 forms of recipients through API?
To download the form 1099-NEC, the first step is to set up a Webhook URL.
To setup Webhook URL,
- Log in to the developer control panel. Navigate to Settings >> Webhooks.
- Click Add Webhook button and choose the Event Type as PDF Complete.
- Enter the Callback URL and click on the Submit button. Ensure that the callback URL is valid as the API will Post a sample JSON. The callback URL is expected to return HTTP 200 response code to remain active.
Once the Webhook setup is completed, You can request the GetPDF method, and the response will contain the link to download the completed Form 1099-NEC via PDF Download webhook. You can request the GetPDF method irrespective of the status.
15. How to get the status of the record?
Use status method to get the status of the records on demand. You will have to provide the SubmissionId and RecordIds that were returned in the Create response. If the form is accepted by the IRS, then the status would return as “Accepted”.
Below are the different statuses of the 1099-NEC form (Federal) available.
- Created - Return created but not transmitted.
- Transmitted - Transmitted, and it's ready for e-file processing.
- Under Processing - During this step, the TaxBandits e-file engine has taken over and is ready to be sent to the agency.
- Sent to Agency - The return has been sent to the agency and waiting for their status.
- Accepted - Accepted by the Agency
- Rejected - Rejected by the Agency. The agency will send the reason for rejection. You can correct the error and retransmit.
16. What timezone should be mentioned in TxnDate for POST method?
User must enter dates for TxnDate in EST time zone and in the form mm/dd/yyyy or mm-dd-yyyy. The error message "Transaction Date (TxnDate) must not be a future date" will appear if any other time zone is provided.