Prerequisites

There are two prerequisites before a 1099 form can be issued to an Individual.

  1. You must ensure the recipient's information is up to date and contains all the information needed for each 1099 form.
  2. You must collect the payer's information.


️ The Role of Abound® in 1099 Issuance and Filing

As outlined in our Terms of Service, Abound® is not a tax advisor. Our only function with respect to your end user’s 1099 forms is to facilitate issuance and filing of these forms based on the information you provide to us. Please consult with appropriate tax and compliance counsel to ensure that you are passing correct data in the required fields so that Abound® can fulfill its issuance and filing role.

Below we outline how to do this with the Users and Payer API resources for the Recipient (User) and Payer, respectively.

Collecting Recipient Information

If this is your first time interacting with the Form 1099 Recipient (User) you can create a new User by using the POST /users API endpoint and passing in the relevant information. If you have already done this, ensure that the user's information is correct and you have the resulting userId handy when issuing the 1099 form.

The IRS may levy a penalty on the payer if any recipient information is incorrect.

If you need to update the user's information use the PUT /users/{userId} endpoint.

Collecting Payer Information

If this your first time registering a Payer, you can do this by creating a new Payer API endpoint and passing in the relevant information. Ensure that the payer's information is correct and you have the resulting payerId handy when issuing the 1099 form.

If you need to update the user's information use the PUT /payers/{payerId} endpoint.

Disclosure Statements

It is important to note that you must receive authorization for Abound® to generate Form 1099 documents. This can be done by including the following disclosures in your application and requiring the user to acknowledge and agree to the terms through the use of a checkbox or similar UI.

Electronic Form 1099 Consent

By using [Company's] services you agree to and understand the following:

  • You are opting in to receiving an electronic copy of your 1099-[X] form.
  • This consent to receive an electronic 1099 will remain in place so long as you do not opt out.
  • Any electronic 1099s made available to you will remain available indefinitely until you request that your,[Company] account be closed and/or deleted.

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For more information, review our Electronic Delivery of Forms Section.

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Please make sure you are aware of our filing dates and deadlines.


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