If you’re tired of the time-consuming and costly process of mailing out paper 1099s to independent contractors (ICs) and vendors, the feds want you to go the electronic route. Just be sure you remember to do this, too.
In an effort to help employers scale back their paper use, IRS says it’s OK to for firms to send electronic 1099s to vendors and ICs — but there’s a catch.
When it comes to electronic 1099s, you can’t simply send out an email or post them online.
To send out 1099s electronically, employers must satisfy the following two requirements:
- The forms must be secured behind a password-protected log-in, and
- You need to get the consent of every vendor or IC before you can put up their info.