What Is E-Filing?
Electronic filing of taxes, or e-filing, is the transmission of the required annual and
quarterly tax information (such as W-2s and 1099s) directly to the Internal Revenue
Service (IRS) via electronic means rather than filing traditional paper tax forms.
Since e-file was introduced by the IRS, the percentage of returns filed electronically has
risen significantly. In fact, the IRS has set a goal of 75 percent of all W-2 filings to be
completed electronically by 2015.
E-filing is quicker, easier and more accurate than using paper returns. However, e-filing
does not negate the need to get a copy of the form to the employee or recipient. They
still must receive a paper copy or opt to receive an electronic version.
E-filing typically includes e-filing the returns with the IRS, Social Security Administration
and printing/mailing copies to employees and other recipients.
Why Do People Choose to E-File?
Electronic filing is quickly becoming the preferred method for filing 1099s, W-2s and
other business tax forms due to its accuracy, safety and speed. Specifically, people
choose e-file to:
• Help ensure accuracy (an average of 1 percent error rate compared to 20
percent with paper tax returns)
• Save time doing complicated calculations
• Receive instant notification of receipt, and check the status
of the return from their desktop
• Remove the need for software and forms
• Eliminate trips to the post office
• Avoid paper jams or misaligned forms in printers
• Save labor costs of printing, mailing and manually submitting forms
What about Security?
Security is a very important consideration when e-filing. Sensitive tax information must
be protected or the employer could be at risk.
Facilities that have achieved Service Organization Control (SOC) certification have put
the necessary precautions in place to sufficiently protect data. This certification, by the
American Institute of CPAs means that every step of the process has been thoroughly
examined and approved to guarantee security.
How Our Service Works
First, a customer sets up an account on the site. This includes entering the payers (the
company or other entity that paid the recipient) and the recipients (the individuals who
received payment).
The customer then fills out the on-screen forms. Or for a large number of filings, the
customer can import the data using a QuickBooks plug-in or an Excel spreadsheet.
Lastly, the customer reviews and submits the form.
Once the forms are submitted, we:
• E-file the forms directly to the IRS (1099s) and/or Social Security Administration (W-
2s). We participate in the IRS Combined Federal and State Filing Program (CFSFP)
for forms 1099-MISC, 1099-DIV, 1099-INT, 1099-B and 1099-R, which can save
customers the step of filing separately in participating states.
CFSFP participating states include: AL, AZ, AK, CA, CO, CT, DE, DC, GA, HI, ID,
IN, IA, KS, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NJ, NM, NC, ND, OH, SC,
UT, VA, VT and WI.
• Offer e-delivery to recipients. Customers can choose to provide their employees’
and other recipients’ e-mail addresses, and we will give them the choice to access
their forms immediately online via a secure link.
• Print and mail your forms to recipients (unless they choose online access) in
our SOC-certified facility. Forms are pressure-sealed using high-security paper and
delivered via first-class mail.
• Notify the customer via email at each step of the way. The customer will receive
e-mail confirmations when:
o The transaction is complete (check out)
o Forms have been uploaded to IRS and/or SSA
o Recipient copies are postmarked and mailed
o The IRS or SSA accepts the filings
• Notify recipients when their forms are accepted by the IRS or Social Security (as
long as recipient email addresses are provided).
• Store customer data on our secure servers. They can view or print PDF versions
of the forms any time after filing, for at least four years.
What Forms Can Be E-Filed Through Our Site?
You can file the following forms on our site:
• W-2
• 1099-B
• 1099-C
• 1099-DIV
• 1099-DIV Correction
• 1099-INT
• 1099-INT Correction
• 1099-MISC
• 1099-MISC Correction
• 1099-R
• 1099-S
• 1099-S Correction
• 1098 Mortgage Interest Statement
• 1098 Correction
• 1098-T
