Did you know that 1986 was the first year that the U.S. IRS offered an option to file electronically? In that year 25,000 returns were filed by this new method. You can read the exciting history of IRS e-filing here.
Fast forward to today. In 2011, over 112 million returns were e-filed annually, and that was 13% up on the year prior. Nearly 80 percent of all individual federal returns are now e-filed, and over 800 million forms have been filed to date. The IRS is so keen on e-filing that if you file more than 250 1099s you are required to e-file.
But enough statistics, how can e-filing 1099s simplify your practice? E-filed forms are processed faster and with fewer errors. As we mentioned last month, Xero now supports 1099s, and the workflow is super-efficient. Just setup a couple of rules, and Xero pulls all the information the IRS needs straight from your ledger. Then you can send that information to the IRS through our integration with Track1099.
Track1099 makes it even easier to file your 1099s with intuitive dashboards to track IRS and Recipient Status, free E-Corrections to the IRS and Recipients, and they keep your data from year to year. Track1099 emails the 1099 equivalent form to the vendor and also give you the option to print and mail the 1099 yourself, or can mail the physical form on your behalf. This makes it super easy manage your vendors and takes the headaches out of compliance.
Xero users get a 10% discount on track1099. Regardless of whether your firm is large or small, the integration and the management tools make it super easy to streamline your workflow, increase your productivity and focus your valuable time on other areas of your practice. Watch the video to see how a 1099 looks when it’s processed in Track1099:
If you are already working with another 1099 e-filing solution, you can connect with them by uploading a CSV file into their system and then managing the e-filing from there.
In this day and age, e-filing is a natural extension of Xero and a great way to sleep better on January 31.