Overview

Form 1099-NEC is used by businesses (payers) to report non-employee compensation paid to recipients (payees) such as independent contractors, freelancers, and consultants. This form may be filed regardless of the amount paid, but filing becomes mandatory if a business pays $600 or more in non-employee compensation during the tax year.

Services offered by TaxBandits API

• Federal & State Filing - E-file 1099-NEC with both the IRS and States.
• State-Only Filing - E-file 1099-NEC only with the state (if you have filed with the IRS already).
• Postal Mailing - Distribute the recipient copy of Form 1099-NEC via Postal Mail.
• Online Access - Share the digital copies of Form 1099-NEC with the recipients through a secure online portal.
• Corrections - File corrections for 1099-NEC forms that are already accepted by the IRS (even if original returns filed elsewhere).

How to file Form 1099-NEC

You can use the following endpoints to complete the Form 1099-NEC filing with the TaxBandits API.

Note:

To use the following endpoints, you must first call the Auth method to obtain an access token. Include this token in your request header as a Bearer token. Refer to OAuth 2.0 Authentication for details on JWT-based authentication.

• Create - Used to create Form 1099-NEC for recipients associated with the payer. You can also enable state filing, postal mail, and online access if needed.
• Update - Used to make changes to an existing Form 1099-NEC before transmission.
• Transmit - Used to transmit Form 1099-NEC to the IRS electronically.

PDF retrieval

You can obtain the PDF version of your 1099-NEC forms using one of the following endpoints:

• RequestDraftPdfUrl - Used to return the draft PDF URLs and draft PDF path for review purposes. These forms are not for filing and will have a watermark "For Review only" on them.
• RequestPdfURL - Used to retrieve PDF URLs for single or multiple recipients.
• GetPDF - Used to get the link for the 1099-NEC form PDF. To use this, you must have configured webhooks for it so that the endpoint will return the PDFs via Webhook.

Info:

To retrieve the final version of 1099-NEC Form PDFs, you can use either RequestPdfURL or GetPDF.

Status retrieval

You can retrieve the status of your 1099-NEC in two ways:

• Status - Use this endpoint to retrieve the status of the 1099-NEC submitted to the IRS and/or states.

• Webhooks - You can configure webhooks for the following event types to receive Form 1099-NEC status updates.

  • E-file Status Change - You will be notified when the IRS accepts or rejects your Form 1099-NEC. Learn More
  • E-file State Status Change - You will be notified when the state agency accepts or rejects your Form 1099-NEC. Learn More
  • Postal Sent - You will be notified when the 1099-NEC forms are mailed to the recipients. Learn More
  • Online Access Status Change - You will be notified when the Form 1099-NEC forms are shared with recipients via online access, when recipients provide consent, and when they access the forms. Learn More

Other actions

You can use any of the following endpoints to perform the corresponding actions.

• ValidateForm - Used to validate the field-level specifications of 1099-NEC before creating the form. (Optional)
• Validate - Used to audit the created 1099-NEC form before transmission to the IRS. (Optional)
• List - Used to list all 1099-NEC forms for a submission or Payer.
• Get - Used to retrieve the recipient data, business data, and form data from the 1099-NEC form created.
• GetbyRecordIds - To retrieve the recipient data, business data, and form data using the Recordids (without SubmissionId).
• Delete - Used to delete the 1099-NEC form you prepared in TaxBandits before transmitting.
• GenerateFromTxns - Use this method if you want to generate 1099-NEC for the given business and recipient IDs based on the transactions you recorded using Form1099Transactions.
• Approve - Used to approve the 1099-NEC generated based on the transactions posted in TaxBandits.