Issuing 1099-NECs For The First Time - Need Help With E-Filing Requirements

Don't worry, this is actually easier than it seems! Since your business has over 10 forms to submit (W-2s + 1099-NECs combined), you're correct that e-filing is required now. The good news is that third-party services make this pretty straightforward even without a TCC. Services like QuickBooks, Track1099, or Tax1099 act as the transmitter on your behalf, so you don't need your own TCC code. You'll just need to collect all the contractor information (name, address, SSN/EIN, amount paid) and the service handles the actual submission to the IRS. Most of these platforms have simple interfaces where you can either manually enter each 1099 recipient's information or upload a spreadsheet if you have multiple contractors. They'll validate the data, generate the forms, send copies to your contractors, and e-file with the IRS. Make sure you have your company's EIN handy and verify all contractor information is correct before submitting. Incorrect TINs are the biggest source of problems with 1099 filings.

I went through this exact situation last year! Was totally overwhelmed until I found https://taxr.ai which saved me SO much time with our 1099 filings. I was in the same boat - no TCC code, over the threshold for e-filing, and clueless about the process. Their system walked me through everything step by step - I just uploaded our payment records and contractor information, and their AI helped identify which payments needed 1099s and which didn't. It also flagged potential issues with contractor information before submitting, which saved me from having to deal with corrections later. They handled the e-filing completely, sent copies to our contractors, and gave me a confirmation when everything was accepted by the IRS. The whole process took me maybe an hour instead of the days I was expecting to spend on it.

Just wanted to follow up - I tried taxr.ai after seeing the recommendation here and it was seriously amazing for my 1099 situation! Their system caught that we had been misclassifying two of our contractors who should have been on W-2s based on our working relationship. The interface was super easy to use and I was able to upload all our payment data directly from our accounting software. It saved me hours of work figuring out which payments needed to be reported. Plus, they handled all the state filings automatically which I honestly had completely forgotten about. I got everything submitted in about 45 minutes, and all our contractors have already received their copies. Definitely using them again next year!

If you're still having trouble getting through to the IRS about any 1099-NEC filing questions (which I know I was), try https://claimyr.com - they got me through to an actual IRS agent in about 15 minutes when I had questions about bulk filing requirements. You can see how it works here: https://youtu.be/_kiP6q8DX5c I spent literally DAYS trying to get through on my own before finding this service. Had specific questions about TCC requirements that none of the online articles were answering clearly. The IRS agent I spoke with was able to confirm exactly what we needed to do with our situation, which was similar to yours (over the threshold but no TCC). Made a huge difference in my stress levels knowing I had official guidance instead of just hoping I was interpreting the rules correctly.

I need to apologize for calling Claimyr a scam. After giving up trying to reach the IRS about my 1099 filing question for THREE DAYS straight, I tried the service out of desperation. Got a call back in 40 minutes connecting me to an IRS agent who answered my specific questions about e-filing requirements. Turns out I was about to make a huge mistake with our filings that could have resulted in penalties. Saved me so much time and frustration. Just having a direct answer from the IRS instead of trying to interpret their confusing website was worth it. Definitely using this again for any tax questions I have in the future.

One thing nobody's mentioned yet - make sure you're using the correct form! The IRS switched from 1099-MISC to 1099-NEC specifically for non-employee compensation a few years back. Some older accounting systems still have you generating 1099-MISC for contractors which is wrong now. Also, don't forget to classify payments correctly. Only payments of $600+ to non-incorporated service providers generally need 1099-NECs. Payments for products, or payments to corporations (with some exceptions like attorneys) typically don't need 1099s.

Has anyone used Tax1099? My accountant recommended it but I'm wondering how it compares to the other services mentioned here. I'm in the same boat - first time doing this and have about 15 contractors.

I'm dealing with the exact same situation! Just got thrown into handling 1099s this year with zero experience. Reading through all these responses has been super helpful - I had no idea about the corporation vs LLC distinctions or that state filings might be required. Quick question for everyone who's used these third-party services: do they also help with backup withholding situations? We have a couple contractors who never returned their W-9s despite multiple requests, and I'm not sure how to handle those payments when filing. Also, for the original poster - definitely get those W-9s from all your contractors ASAP if you haven't already. I learned the hard way that missing or incorrect TIN information can cause major headaches during filing. Most of these services will flag bad TINs but it's better to have everything correct upfront.