TAP 206-028

Form 1099 Free Electronic Filing

Issue Statement:

Charitable organizations and small businesses with fewer than 250 Form 1099-MISC (Miscellaneous Income) are required to use third party providers to file them electronically with the Internal Revenue Service (IRS).

Proposal:

Implement a system similar to the Social Security Administration (SSA) Business Services Online that would allow those filing small numbers of forms to do so electronically at no cost.  If the cost to do this or the time required to implement the new system makes this impractical in the short term, TAP recommends the IRS arrange free filing through authorized providers for small churches (and other non-profit organizations) and small businesses.  Information and filing instructions should be easily accessible to all qualifying organizations.