Electronic Delivery of Forms 1099
Abound® facilitates an electronic delivery of IRS Forms 1099. Before you can issue a Form 1099 electronically, however, you must receive consent from your end user, the Form 1099 recipient. Per IRS Publication 1179:
The recipient must consent in the affirmative to receiving the statement electronically and not have withdrawn the consent before the statement is furnished. The consent by the recipient must be made electronically in a way that shows that he or she can access the statement in the electronic format in which it will be furnished. You must notify the recipient of any hardware or software changes prior to furnishing the statement. A new consent to receive the statement electronically is required after the new hardware or software is put into service. Prior to furnishing the statements electronically, you must provide the recipient a statement with the following statements prominently displayed.
- If the recipient does not consent to receive the statement electronically, a paper copy will be provided.
- The scope and duration of the consent. For example, whether the consent applies to every year the statement is furnished or only for the January 31, 2023 (February 15 for Forms 1099-B, 1099-S, and 1099-MISC with payments reported in box 8 or 10) immediately following the date of the consent.
- How to obtain a paper copy after giving consent.
- How to withdraw the consent. The consent may be withdrawn at any time by furnishing the withdrawal in writing (electronically or on paper) to the person whose name appears on the statement.
- Confirmation of the withdrawal will also be in writing (electronically or on paper).
- Notice of termination. The notice must state under what conditions the statements will no longer be furnished to the recipient.
- Procedures to update the recipient's information.
- Ensure the electronic format contains all the required information and complies with the guidelines in this document;
- Post, on or before the January 31, 2023 due date, the applicable statement on a website accessible to the recipient through October 17 of that year; and
- Inform the recipient, electronically or by mail, of the posting and how to access and print the statement.
Please consult your legal counsel and/ or compliance department for how to receive consent for your end users. For further information, please review IRS Publication 1179 as well as Abound’s Electronic Consent for Tax Forms & Federal Payments and 1099 Form Processing, Collection & Terms located within the Legal Terms of Service section of our website.
Updated 3 months ago