Electronic Delivery of 1099 Recipient Statements


What is Electronic Delivery of Recipient Statements?

 

The IRS authorizes businesses to furnish an electronic copy to recipient of form 1099s, instead of a paper copy. If a business is required to furnish a written statement (Copy B) to a recipient, then it may furnish the statement electronically instead of on paper.

 

An electronic recipient statement is a statement provided to the recipient via email or delivered through a web interface, where the recipient can go to a web site and download the statement. This helps businesses avoid the need to mail a paper copy to the recipient.

 

IRS guidelines state that, a recipient should give his/her consent before an electronic statement is delivered, otherwise a paper copy must be provided.

 

Requirements:

 

  • Prior to furnishing the statements electronically, the business must ask for the recipient’s consent. 
  • The recipient must consent in the affirmative and have not withdrawn the consent before the statement is furnished.
  • If the recipient does not consent to receive the statement electronically, a paper copy has to be provided.
  • The applicable statement must be posted on a website accessible to the recipient, on or before the January 31 due date, through October 15 of that year.

 

What changes have we made?

 

  • On our website we are asking you to provide recipient email ids while filling out forms. 
  • When you submit your 1099 forms, emails will be sent out to all recipients asking for their consent to receive their statement electronically. 
  • The recipients who give their consent will be provided ways to access their statements directly from our website and we will not mail out their paper statements.
  • We will still mail out paper statements to all recipients who do not give their consent.

 

What do you need to do?

 

You do not have to do much. Just provide us the recipients' email ids while filling out their 1099 forms. We will take care of the rest.

 

Please help us in this effort to save our environment and go green.

 

We do all the work:

 

When you provide your recipient’s email, we take care of the rest.

 

  • We inform the recipients on how they can access their forms from our website 
  • We ask them to provide their consent 
  • We provide electronic access to their forms if they have provided their consent
  • We mail out paper forms by February 2nd deadline for those who have not provided their consent

 

Click here to see the email we sent to recipients to ask their consent.

 

Rest Assured:

 

Rest assured that all your recipients will receive their statements either via mail or electronically. As long as the recipient has provided their consent and we have made the recipients' statements available on our website by January 31, you are treated by the IRS as furnishing the statement timely. All users who do not want to give their consent will still receive their paper statements.

 

The electronic filing requirements for recipient statements can be found in the General Instructions for Certain Information Returns Section M (page 9-10).

 

As always, we are committed to provide you the best possible service. If you have any question or concern please feel free to contact us at support@OnlineFileTaxes.com.







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