ROCK HILL, SC / ACCESSWIRE / January 23, 2024 / January 31, 2024, marks a major deadline for businesses to report their annual employment and payroll tax information with the IRS, SSA, and states. This information is reported to the IRS, and other required agencies using Forms 1099 and W-2. Many employers and insurance providers are also required to complete the Affordable Care Act reporting with the IRS, select states, and distribute copies of these forms to the IRS. The deadline to distribute copies of ACA 1095 Forms is March 4, 2024.
Information Reported on Forms 1099, 1095 & W-2
The purpose behind both of these forms is to report income whether it was made through traditional wages (Form W-2), nonemployee compensation (1099-NEC), miscellaneous payments (1099-MISC), and more. Forms 1095-B/C are used to report specific information about health insurance coverage that was offered to an individual. While Form W2 specifically reports wages and withholdings paid to an employee, the 1099 Series of forms includes a wide range of information returns. In addition to the most common forms (1099-NEC & 1099-MISC), here are a few more:
- 1099-INT: Interest Income
- 1099-DIV: Dividends and Distributions
- 1099-R: Distributions from Pensions
- 1099-K: Payment Card and Third-party Network Transactions
- 1099-S: Proceeds from Real Estate Transactions
- 1099-B: Proceeds from Broker and Barter Exchange Transactions
Importance of Distributing Recipient Copies of Forms 1099, 1095 & W-2
In addition to filing these forms, equally important is the requirement to distribute copies to their employees and recipients for use on their own personal tax returns. TaxBandits not only offers simple filing options for these forms as an IRS-authorized e-file provider, but they enable their clients to go paperless, distributing recipient copies electronically via their secure Online Access portal.
IRS/SSA Requirements for Electronic Delivery of Copies
It is a major misconception among businesses that they can simply email copies of Forms W-2, 1095, and 1099 to their employees and recipients. This is not the case, while the IRS and SSA allow electronic delivery of copies, they require the employer/payer to get their recipients’ consent for receiving electronic copies of their tax forms.
Secure Online Access from TaxBandits
The TaxBandits team designed their Online Access feature with the same focus on ease and streamlined functionality that is the foundation of the e-filing process. Once forms are filed and transmitted to the respective agency, they are immediately sent to recipients. This eliminates any processing time needed to print and mail copies, reduces paper usage, and eliminates the risk of copies not being postmarked by the deadline.
The Process of Granting TaxBandits Online Access
The process of enabling Online Access to recipients through TaxBandits is a simple one. Clients can proceed with filing their forms as they normally would and opt-in to Online Access when they reach the summary page of the checkout process. The only additional information needed to enable this feature is the recipients’ email address.
Once forms are transmitted, recipients will receive an email invitation prompting them to create credentials and access the secure portal. Before accessing their forms, recipients will be prompted to give their consent to receive electronic copies. Once consent is given, they can access their forms. Forms will be available for viewing and downloading at any time from any place all that is required is internet access.
Additional Benefits of TaxBandits Online Access
TaxBandits requires recipients to provide their electronic signature as proof that they understand and consent to receiving electronic copies of their tax forms. This satisfies the IRS requirement of consent and provides employers and payers with documentation of this consent. This is an affordable option for just $0.50. Plus, TaxBandits clients can customize the look of their secure portal with their business branding. Clients can customize the portal with their business logo, theme, and URL.
If any recipients decline to consent to Online Access, their employers and payers can easily opt them into Postal Mailing services from TaxBandits. It is never too late to add Online Access services, if a client needs to add this service after forms have been transmitted, they can easily do so from the Distribution Center of their account.
When asked about the benefits of the Online Access feature, Agie Sundaram, the CEO and co-founder of SPAN Enterprises (parent company of TaxBandits) responded stating, "Online Access is an excellent solution for businesses and tax professionals to distribute their recipient copies this tax season. It is simple and paperless, and we have focused a lot of energy and resources on creating a seamless experience for our clients and a user-friendly experience for their recipients. Online Access services are just another way that TaxBandits makes it easy to maintain IRS compliance."
Businesses and Tax Professionals can create their free account today and begin filing and distributing forms at taxbandits.com.
About TaxBandits:
TaxBandits is a SOC 2 Certified, IRS-authorized e-file provider specializing in Form 1099-NEC, Form W-2, Form 1095-C, Form 1095-B, Form 940, Form 941, and Form W-9. Serving businesses, service providers, and tax professionals, TaxBandits offers a comprehensive solution for year-end filings.
Software providers and other high-volume filers can take advantage of TaxBandits API. The integration allows them to add value for their clients and expand monetization efforts. TaxBandits API enables seamless preparation and e-filing of 1099, W-2, 941, 940, and ACA 1095 forms. Software providers can also use the developer-friendly 1099 API to request W-9s and automate 1099 filings efficiently.
About SPAN Enterprises:
Headquartered in Rock Hill, South Carolina, SPAN Enterprises has been developing industry-leading software tools for e-filing and business management for over a decade. The SPAN Enterprises portfolio includes Tax 990, ACAwise, ExpressExtension, 123PayStubs, and TruckLogics.
For media inquiries, please contact:
Stephanie Glanville
Content Writer, SPAN Enterprises
stephanie@spanenterprises.com
SOURCE: TaxBandits
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