As tax season approaches, businesses often discover IRS-approved Web-based tax filing systems can offer many advantages besides simply being environmentally friendly. E-filing provides more time for both businesses and employees – an important feature for companies with many freelance workers – and electronic systems can also be more secure than paper forms.
When businesses file taxes electronically, employees have more time to file themselves than if they were sent paper forms. Employers must remember to send 1099 and W2 tax forms to employees by January 31 of next year, meaning they must be postmarked by that date. If filed electronically, employees have until April 1 to send forms to the IRS and Social Security Administration. If filed on paper, the mail must be postmarked by February 28.
Another advantage to filing taxes electronically is the issue of safety. For firms sending out paper tax forms, the possibility of being lost or stolen is much more likely when sent through the mail in paper form compared to when they are filed electronically. In addition, firms must shred confidential documents, whether they are related to tax forms or not, which can be time consuming and expensive.
For any business preparing for tax season, having a Web-based 1099 outsourcing service helps with the organization and filing of 1099 forms, as well as W2 and 1098 forms. In addition, 1099 processing services can reassure businesses they are complying with all IRS regulations and requirements.
Tab Service Company is a leading provider of 1099 outsourcing services. As an SOC2-approved service organization, we apply industry-best practices to our approach with clients.