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1099 Federal Filing

1099 forms are used by businesses and individuals annually to report certain types of payments made during the year, such as non-employee compensation, third-party network transactions, and other specified types of payments, to the IRS.

Based on the type of payment, you must choose and file the applicable 1099 form. Here are some of the commonly used 1099 forms and their purpose.

  • Form 1099-NEC - Used to report the payments made to non-employees, such as independent contractors, freelancers, etc.
  • Form 1099-MISC - Used to report the miscellaneous payments made, such as rents, prizes, awards, royalties, Medical and health care payments, etc..
  • Form 1099-K - Used to report the transactions made through online payment cards and third-party networks.

To explore other types of 1099 forms and their purpose, click here

How to automate 1099 with TaxBandits API​

Once your application is integrated with the TaxBandits API, you can follow these steps to e-file 1099 forms with the IRS:

1. Complete OAuth 2.0 Authentication​

This is a common step for every endpoint. Before using any endpoint, you must get the access token. This access token must be provided in the request header as the ‘Bearer‘ token. For detailed information, click here.

2. Add Business (Optional)​

Use the Business/Create endpoint to create the business for which you need to file 1099 forms. If skipped, the business will be created automatically while creating your first 1099 return.

3. Configure Webhooks (Optional)​

To receive IRS status updates for the 1099 forms you file, you must configure webhooks for the event type ‘E-file Status Change’.
Click here to see how.

4. Create 1099 forms​

Use the Create endpoint of the respective 1099 form type to generate your returns. In the request JSON, you can opt for federal filing, state filing, postal mailing, and/or online access.

5. Transmit forms​

Use the Transmit endpoint, you can submit your prepared 1099 returns directly to the IRS and/or state agencies. You’ll receive status updates via Webhooks (if configured). If not, you can use the Status endpoint to retrieve the status.

Generating 1099-NEC Forms Based on Transactions​

By using the Form1099Transactions endpoint, you can record the payouts and transactions made to the recipients throughout the year. Based on these data, the 1099-NEC forms can be auto-generated at the end of the year.

How it works​

1. Record Transactions​

Use the Form1099Transactions endpoint to record payouts and transactions throughout the year.

2. Generate Forms​

Based on the recorded transactions, the corresponding 1099 forms can be generated for using the GenerateFromTxns endpoint.

3. Approve and Transmit​

You can review and approve the 1099s generated by our system. Then, use the Transmit endpoint to submit the forms to the IRS and/or state agencies.