Discussion:Where do you get your forms (W2s, 1099s, etc)?

But if you are cheap like me, that still beats paying for them! Next year I'll just order earlier.

Works like tax software year to year.

Natalie-this is my first year being the one who needs to obtain them so I have no idea what to get. I know how many I need, but don't know if I need blank forms, IRS forms, etc. PS-tough night for the Warriors last night!

Residing in the great state of Georgia, that game last night was a big deal around here.

304-264-5602. You also have to sign up with SSA if you want to efile W-2's; I've tried calling them all day - busy,busy,busy..........

Since the 1099s/1096s have to be filed on the red forms, I obtain them from the IRS. The IRS red-1096s are on regular paper, but it's 8" wide, rather than the standard 8.5" width. This means that you have to play around with the alignment features to get the names and numbers to print correctly in the boxes. But it can be done. And in almost every case, you can use last year's 1099 software to print this year's forms so long as you're using preprinted forms such as from the IRS so you probably don't have to buy a new 1099 program every year.

The IRS' red-1099s are on NCR paper, but it will feed through a laser printer. Again, though, it's 8" vs 8.5" wide so some trial-and-error will be required to make the data align.

If you purchase commercial red forms, they'll include a tear-off 1/2" strip so that the forms are 8.5" as they're fed through your printer. Little or no trial-and-error should be required with commercially printed forms, but you do have to pay for them.

To efile 1099s, you have to purchase software that permits that. I've shopped around, and the going price seems to be $200 for the 1st year, with $100 per year renewals after that. It comes down to whether you will file enough 1099s for enough different companies to make it worth it.

If you do plan to efile 1099s, you do have to file a Form 4419 which can be faxed to the IRS. The software company will file the 1099s with the IRS, but you still have to have a 4419 on file with the IRS (the same as Intuit efiles my 1040s but I still have to have my own EFIN).

If you fax the 4419 to the IRS soon, you'll have the response in plenty of time to efile 1099s this year. Also, efiling 1099s/1096s with the IRS gets you an additional 31 days to submit them to the IRS (i.e., until March 31 vs February 29).

In shopping around, the 1099 software from 1099express.com seems to be a slight cut above the other companies that I've checked into, but they're all essentially the same. I've downloaded the 1099express program and demo'd it, but I haven't decided to purchase it yet since I'm still checking with my clients to find out how many 1099s I can expect this year. The company's website has a good explanation of the 1099 efiling requirements and procedures.

Another option I've discovered is a company called paycycle.com, which is worth checking out for payroll processing and 1099 filing. The payroll processing features are pretty slick, and the company doesn't nickle/dime you for every little additional feature (such as direct-deposit). I just discovered paycycle.com so I haven't used it yet, but its features and prices are pretty impressive. Back on point, paycycle.com will allow you to prepare, print, and efile 1099s/1096s for $15 per company so I might end up there.

Insofar as printing the IRS' copy of the 1099s/1096s in black on regular paper, I've seen lots of other posts from people over the years who say they've done the same thing without any problems. I've always shied away from that for a couple of reasons. First, if I charge someone a fee to prepare these forms professionally, I do so in accordance with the requirements imposed by the IRS. I don't take shortcuts. Second, the IRS can impose penalties of $50 per form for submissions which don't comply with the published requirements. I don't want to have to explain to a client (a) why I charged him to do a less than professional job, and (b) why the IRS is charging him a penalty for a job that he paid me to do correctly. And I certainly don't want to have to pay the penalty for the client, plus refund my fee.

(Sorry for the long post, but there's always alot of misinformation on these matters. We go through this same drill every year.)

For those interested in e-filing through another company, you can check out approved vendors at http://www.irs.gov/efile/lists/0,,id=100422,00.html.

I don't know how each software company handles it, but according to the 1099express.com website, if you've filed a 4419, you can efile for your clients for no additional charge other than the initial cost of the program. If you efile through the software company, you don't need to file a 4419 and obtain a TCC, but you do pay extra for the software company to efile for you. I really think I'm just going to stick with the old-fashioned red forms. They're a nuisance, but so far I don't have a better solution, at least for the number of 1099s/1096s I need to produce.

I saw NCR paper for the first time at the National Cash Register exhibition building at the 1964 New York World's Fair (when I was very, very, very young).

It may have come to mean "no carbon required" but the paper was originally named for its creator, NCR.

http://www.irs.gov/businesses/page/0,,id=23108,00.html

(I'm presently still doing by paper - but just considering the possibility for NEXT year).

How to Apply (for efiling information returns):

• Complete Form 4419, Application for Filing Information Returns Electronically
• Complete at least 30 days before the due date of the return
• A Transmitter Control Code (TCC) will be assigned
• One TCC can be used for multiple payers
• Customer Service Section: 866-455-7438, M-F 8:30am to 4:30pm EST

What's missing in my mind is what is the documentation to tell the IRS that I am authorized to efile 1099s for such-and-such specific companies? I'm probably making this harder than it really is. I don't know. If someone doesn't clear it up on here, I'll call the Customer Service Number above on Monday and will post the answer.

I guess I really am trying to make this (efiling 1099s) more difficult than it really is. It's just that with tax returns (1040s, etc.), the client signs an IRS form specifically authorizing me to efile a specific return for a specific year. I'm just so used to having that formal, written authorization signed and sitting in my files that it's hard for me to cope with the notion that there may be no equivalent authorization required for 1099s and W2s. I guess I'll just conjure something up myself for the client to sign giving me the go-ahead.

I order my forms from Visible (NKA Moore Wallace). I get a discount by ordering in September and I can order exactly what I need instead of the "handy packages" that Office Depot, etc has. Many of my clients have less than five employees. If I used the "handy packages" that give 50 W-2's and only 3 W'3's, it would get very expensive. Plus, FL doesn't have state income tax so I only need the B & C copies. With Visible, I can order a package of 50 W-3's.

BL, some service providers do the entire process -- they e-file with the Fed and state (assuming the state allows e-filing) and then they mail the required copies to the recipients! If the client prefers to do the mailing, I send the final 1099s in a pdf file to the client, they print the 1099s and mail them. When I e-file through the SSA, I also send the file to my client to distribute the W2s. (Keep in mind, my email server is encrypted.)

The handy packages have the red forms - which you won't need if you are efiling. So balance out the waste of the red's with the cost of CFS (or some other software). I forget each year how confusing this is - so no, you're not stupid.

And for my clients, I generally mail the W-2's and 1099's out for them, and just bill them for the cost of the forms and the postage.

Another question, if you have to pay a service provider, are you really saving anything? I guess everyone needs to review the economics for themselves. I do wish that QB would do 1099-Int and 1098's. I've designed my own using Excel.

My question was - is there a comparable form to the 8879 to be able to transmit the data? Otherwise it's at the will of the practitioner doing it. Before I am willing to e-file these forms for clients, I want a firm policy in place that officially authorizes me to do it. I'm getting quite disenchanted with the government's rush to put the filing burden on the practitioner. We're doing the government's work each time we e-anything but aren't provided a tangible benefit in return.

I'm using the CFS efile software this year, and it ran me thru the steps of contacting SSA to get a user name for W-2's and directed me to file Form 4419 for 1099s. (I know, Natalie - you said not needed....CFS said yes, needed - as my first time efiling - not quite sure) Those steps seem to be the only control function the government is interested in at this time

That's not to say there isn't an area of concern. As a suggestion; print out the W-3 and F1096 ("ER" and Payer copy) for the client to reveiw and keep, and one for your files....have the client sign/initial the copy for your file? What do you think?

Thanks for your input! Belle

IRS W-2 which you mentioned are free are really good colored ones. I used to buy these from the office depot. I need these in the quantity of 500 each year. May be I can order them from IRS.

Can I call IRS at the regular business #??

Thanks,

http://www.irs.gov/businesses/page/0,,id=23108,00.html

Also, this tip became buried in the posts above, but check out paycycle.com. It's $15 per client for up to 50 1099s each, including efiling the 1099s & 1096s with the IRS. I'm not using paycycle.com at this time because I have many clients with only 2-4 1099s each, but even so, it's pretty tempting. I'll probably try it for 1 or 2 clients and get hooked. (It's $15 per client for tax & accounting professionals. I think it's $25 for a business owner to run his own 1099s.)

I ended up buying one of those cheapo packages at Office Max, but I'm already starting to rethink that. I haven't opened it yet so it might be going back. It gets the job done, but filing on paper just seems so primitive. I'm so spoiled, I know. I need to think about all the poor people in China who have to do their 1099s by hand.

- Tax Forms > http://www.smartresolution.com/print_services/tax_forms.asp - W-2 Forms > http://www.smartresolution.com/print_services/tax_forms/w2_forms.asp - 1099 Forms > http://www.smartresolution.com/print_services/tax_forms/1099_forms.asp

Hope it helps.