Using our integration, they were able to collect W-9s from their drivers during the onboarding process and record payout transactions made to drivers throughout the year. At the end of the year, TaxBandits automated the e-filing of all of the required 1099 forms with the IRS and States based on the W-9 data and payouts. Then, TaxBandits securely distributed 1099 copies to their drivers.
Understanding
1099 Automation
1099 Automation simplifies the preparation and e-filing of 1099 Forms at the end of the year with the following steps:
- Collect W-9 Forms from vendors, affiliates, and gig workers.
- Record the payout transactions made throughout the year.
- Based on the W-9 data and payouts, the 1099 Forms will be generated, validated, and e-filed with the IRS and State.
- The 1099 Form copies will be distributed to the recipients via Postal Mailing or Online Access.
The 1099 Automation Process with
TaxBandits API
Collect
W-9 Forms
Record & Manage
Payouts
E-file 1099 with
IRS & States
Distribute 1099
Form Copies
A Closer Look at How TaxBandits API Automates
the 1099 Process
Collect W-9 Forms
- TaxBandits API automates the W-9 collection process.
- Once vendors complete their W-9, TaxBandits performs TIN Matching to ensure the TINs match the IRS database and then stores the information safely.
- TaxBandits also supports Form W-8BEN / W-8BEN-E for U.S. non-residents.
click here to learn more about W-9 Automation. .
Record & Manage Payouts Conveniently
- TaxBandits’ 1099 Transaction API records payments made to vendors, gig workers, and affiliates throughout the year.
- You also have a way to bulk-upload the transactions. The uploaded data can be reconciled with your system as well.
- Once uploaded, you can categorize the transactions under the respective 1099 forms.
Let TaxBandits Take Care of 1099 E-filing
- TaxBandits generates 1099s as per the IRS Business Rules using the W-9 and payment data. Then, performs address and data validations for accuracy.
- Preview the 1099 Forms and edit them if needed, then provide approval.
- Once you’ve given final approval, TaxBandits e-files the 1099s with the IRS and the respective states.
Distribute the 1099 Form Copies
- Distribute Form 1099 copies to vendors, gig workers, and affiliates using TaxBandits’ Postal Mailing solution.
- You can also provide electronic form copies to all consenting recipients using TaxBandits’ secure Online Access Portal.
1099 Automation Success Stories with TaxBandits API
A Ridesharing start-up that offers on-demand scheduled delivery services to individuals and businesses integrated TaxBandits API with their software.
A popular creator-economy company that offers a live video streaming platform for numerous content creators integrated TaxBandits API with their software to streamline tax filings.
Our API has enabled them to manage every aspect of their tax compliance directly from their software. This starts with collecting and managing their content creators’ W-9 information. They were then able to complete their year-end 1099-K e-filing with the IRS and State(s). Finally, based on their recipient’s consent, TaxBandits distributed the 1099-K copies via Postal Mailing and secure Online Access.
Serving as an intermediary platform for thousands of gig workers and businesses, a leading Gig Economy Company chose TaxBandits API integration to manage their tax compliance.
With the TaxBandits API, they automated their W-9 collection process and the e-filing of Forms 1099-NEC, 1099-MISC, 1099-K, and more within their software. TaxBandits has helped them meet both their federal and state filing requirements and manages their recipient copy distribution as well.
Frequently Asked Questions about 1099 Automation
1. Can I download my 1099 Forms with Masked TIN?
Yes! By using the API endpoint GetPDF, you can send a request to download the complete 1099 Form in a PDF format, wherein you can choose to mask the TIN in the PDF for security purposes.
Click here to see how it works.
2. Will I have the option to modify the payouts and transactions recorded?
In case you have recorded an incorrect payout or transaction using TaxBandits 1099 Transaction API, you have the option to delete it and add the corrected information again.
For more information, click here.
3. One of my 1099 Forms contains incorrect information. Can I file a 1099 Correction
using API?
Yes! TaxBandits API currently allows you to file corrections for 1099-NEC and
1099-MISC Forms by using the corresponding endpoints.
Note: 1099 corrections can be filed only to correct the recipient details such as Name, TIN, and Payments. If you need to correct the payer details, you must send a letter to the IRS containing all the previously reported payer information and the corrected information.
