Complete 1099 Filing Service
End-to-end 1099 filing through Bill.com: W-9 collection, IRS-validated TINs, payment categorization, form generation, vendor delivery, and direct IRS filing. Meet January 31 deadline with zero penalties.
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Professional 1099 Filing Through Bill.com
Bill.com provides end-to-end 1099 filing automation: W-9 collection with IRS TIN validation, bulk payment categorization, automatic form generation, electronic and physical vendor delivery, and direct filing with IRS and all 50 states—all at $1.99 per form with our bulk partner pricing vs. $2.99 direct.
Why 1099 Filing Matters
IRS requires Form 1099-NEC for any contractor or service provider paid $600+ during the tax year. Missing or late 1099s trigger penalties: $60 per form if filed within 30 days late, $130 if filed by August 1, $340 if filed after August 1 or not filed at all. For a business with 50 contractors, late filing costs $17,000 in penalties. Professional filing eliminates this risk while saving 20+ hours of manual work.
Bill.com End-to-End Automation
Bill.com handles the entire 1099 process: (1) W-9 Agent collects and validates vendor tax information year-round, eliminating January scrambling, (2) payment data is automatically categorized by box (Box 7 for 1099-NEC contractor payments, Box 1 for rent, etc.), (3) forms are generated in IRS-compliant format with one click, (4) vendor delivery via email or USPS happens automatically, (5) direct IRS and state filing is handled electronically by Bill.com's filing service. This saves 20+ hours vs. manual preparation.
Our Bulk Partner Pricing: $1.99 vs. $2.99
As Bill.com accounting partners processing thousands of 1099s annually, we receive bulk pricing: $1.99 per filing vs. $2.99 for direct customers. Additional costs: direct state filing $1.49 per form (all 50 states covered), optional physical mailing $1.99 per form. On 100 1099s, our bulk pricing saves clients $100 compared to direct Bill.com customers. We pass these savings directly to clients—no markup on filing fees.
How It Works
W-9 Collection Throughout Year
We collect and validate W-9 forms year-round using Bill.com W-9 Agent. By year-end, 100% of vendors have IRS-validated tax information.
- New vendors: W-9 collected before first payment (No W-9, No Payment policy)
- TIN validation with IRS in real-time catches errors immediately
- Existing vendors: Annual refresh for high-payment contractors ($10K+)
- All W-9 data flows directly into Bill.com 1099 filing system
- Zero year-end scrambling for missing information
Payment Categorization & Review (December)
In early December, we review all vendor payments and categorize them for proper 1099 reporting. Most categorization happens automatically.
- Bill.com automatically categorizes based on vendor tax classification
- Box 7 (1099-NEC): Non-employee compensation for contractors/freelancers
- Box 1 (1099-MISC): Rent payments to landlords and property owners
- Box 2 (1099-MISC): Royalties for intellectual property or resource extraction
- Box 3 (1099-MISC): Other income (prizes, awards, taxable grants)
- Bulk categorization tools handle hundreds of payments in minutes
Form Generation & Review (Early January)
First week of January, Bill.com generates all 1099 forms in IRS-compliant format. We review for accuracy before delivery and filing.
- Bill.com auto-generates forms based on payment data and W-9 information
- Review: Verify TIN accuracy, legal name spelling, box categorization
- Check: Ensure no forms missing, no duplicates, amounts reconcile to payments
- Corrections: Fix any errors before vendor delivery (misclassifications, etc.)
- Approval: Controller approves final batch before delivery and filing
Vendor Delivery (Mid-January)
By January 20, all vendors receive their 1099 copies via email (electronic) or USPS mail (physical). Choose delivery method per vendor.
- Electronic delivery (default): Instant email with secure PDF attachment
- Physical mailing (+$1.99/form): Bill.com prints and mails via USPS
- Delivery confirmation: Track which vendors opened/downloaded forms
- Automated reminders: Vendors get reminder if they don't access form within 3 days
- Deadline: January 31 is IRS requirement for vendor copies
IRS & State Filing (By January 31)
Bill.com files all 1099-NEC forms directly with IRS and all applicable states by January 31 deadline. No manual submission needed.
- IRS electronic filing: Bill.com submits all 1099-NEC forms to IRS FIRE system
- State filing: All 50 states receive copies where required (+$1.49/form)
- 1099-MISC filing: Extended deadline (March 31 for e-file) but we file in February
- Confirmation: Receive IRS acceptance confirmation within 48 hours
- Copies: Download official IRS-stamped copies for your records
Key Deadlines
1099-NEC Filing & Vendor Delivery Deadline
Form 1099-NEC must be filed with IRS AND delivered to vendors by January 31, 2026 (no extensions available). Covers contractor payments of $600+ during 2025 tax year.
Applies to: All businesses with contractors/freelancers paid $600+ in 2025
1099-MISC Vendor Copies Deadline
Businesses must furnish 1099-MISC copies to recipients by February 2, 2026 (January 31 falls on weekend, moved to next business day).
Applies to: Businesses reporting rent ($600+), royalties, prizes, or other income
1099-MISC IRS E-Filing Deadline
Businesses have until March 31, 2026 to e-file Form 1099-MISC with IRS. Paper filing deadline is February 28 (don't paper file—e-file is faster and more accurate).
Applies to: All businesses filing 1099-MISC forms
New $2,000 Threshold Takes Effect January 1, 2026
Starting with payments made on or after January 1, 2026, the reporting threshold increases from $600 to $2,000 for future tax years. The 2025 tax year (filed in 2026) still uses $600 threshold.
Applies to: Future planning: 2026 payments (filed in 2027) use $2,000 threshold
Common Mistakes to Avoid
Missing January 31 Deadline for 1099-NEC
$60 penalty per form if filed within 30 days late, $130 by August 1, $340 after August 1. On 50 forms, late filing costs $17,000 in penalties.
We start 1099 preparation December 15, generate forms January 5, deliver to vendors by January 20, and file with IRS by January 25—always beating the January 31 deadline by at least 5 days to account for any issues.
Incorrect TIN or Legal Name on Forms
$290 penalty per incorrect form. IRS matches TIN to legal name—mismatches are automatically flagged. Vendors get IRS notices, you get penalties, everyone scrambles to correct and refile.
Bill.com W-9 Agent validates TIN with IRS database when W-9 is submitted (year-round). We catch errors immediately when vendor provides information, not at year-end. 99.9% accuracy eliminates penalty risk.
Wrong Box Classification (1099-NEC vs 1099-MISC)
IRS rejects improperly classified payments. Contractor payments in Box 1 (rent) instead of Box 7 (1099-NEC) trigger IRS inquiries, correction notices, and potential penalties.
Bill.com automatically categorizes based on vendor tax classification. Contractors = 1099-NEC Box 7. Landlords = 1099-MISC Box 1. Royalties = 1099-MISC Box 2. We review all categorization before filing to catch edge cases.
Paper Filing Instead of E-Filing
Paper filing has earlier deadline (February 28 vs March 31 for e-file), higher error rate, no immediate confirmation, and IRS processes paper slower. More penalties, more delays, more stress.
Bill.com always e-files through IRS FIRE system. Instant submission, same-day confirmation, earlier deadline doesn't apply to e-filing. 100% of our 1099s are filed electronically—never paper.
Forgetting State Filing Requirements
Most states require 1099 copies to be filed with state tax authorities in addition to IRS. Missing state filings trigger state penalties (varies by state, typically $50-$100 per form).
Bill.com's state filing service covers all 50 states automatically (+$1.49/form). We file with every applicable state—no manual tracking needed. One filing covers IRS + all states.
Not Providing Vendor Copies by January 31
IRS requires vendors receive copies by January 31 (same deadline as IRS filing for 1099-NEC). Late vendor delivery triggers penalties even if IRS filing was on time.
Bill.com delivers vendor copies by January 20 (electronic or USPS mail). Vendors get forms 10 days before deadline, you get confirmation of delivery, zero penalty risk.
How Finvisor Handles 1099 Filing
We leverage Bill.com's 1099 filing service with our bulk partner pricing ($1.99 vs $2.99), year-round W-9 collection, and early filing to ensure zero penalties and complete IRS compliance.
Year-Round W-9 Collection
Bill.com W-9 Agent collects and validates W-9s throughout the year. By December, 100% of vendors have IRS-validated tax information—no year-end scrambling for missing W-9s.
Bulk Categorization & Review
Bill.com's bulk tools categorize hundreds of payments in minutes. We review all categorization in December, generate forms January 5, and deliver to vendors by January 20.
Early Filing Guarantee
We file with IRS by January 25—always 5+ days before January 31 deadline. Electronic filing provides instant IRS confirmation. Zero late penalties, zero stress.
Frequently Asked Questions
What's included in the $1.99 per form price?
The $1.99 bulk partner pricing includes: (1) unlimited W-9 collection and storage year-round through Bill.com W-9 Agent, (2) TIN validation with IRS database, (3) payment categorization tools, (4) 1099 form generation in IRS-compliant format, (5) electronic vendor delivery via email, and (6) IRS e-filing through FIRE system. Additional costs: direct state filing $1.49 per form (optional but recommended for all 50 states), physical mailing via USPS $1.99 per form (optional, electronic is default). Compare this to $2.99 per form for direct Bill.com customers—our bulk pricing saves $100 per 100 forms.
Do I need to file 1099s for all vendors or just contractors?
You must file 1099-NEC for: (1) independent contractors paid $600+ for services (Box 7), (2) attorneys paid $600+ even if incorporated (exception to corp rule). You must file 1099-MISC for: (1) rent payments $600+ to landlords (Box 1), (2) royalties $600+ (Box 2), (3) prizes and awards $600+ (Box 3), (4) medical and healthcare payments $600+ (Box 6). You DON'T file 1099s for: (1) C-corporations or S-corporations (except attorneys), (2) payments under $600 threshold, (3) employees (they get W-2s instead), (4) payments through credit card or PayPal (payment processor issues 1099-K). Bill.com's system automatically determines which vendors need 1099s based on their W-9 tax classification.
What happens if we miss the January 31 deadline for 1099-NEC?
IRS penalties escalate based on how late you file: (1) $60 per form if filed 1-30 days late, (2) $130 per form if filed 31 days late through August 1, (3) $340 per form if filed after August 1 or not filed. For a business with 50 contractors, filing one week late costs $3,000 in penalties ($60 × 50). Filing after August 1 costs $17,000. There are NO extensions for 1099-NEC—January 31 is a hard deadline. With Finvisor and Bill.com, we file by January 25 (5+ days early) eliminating any risk of missing the deadline.
How quickly can you set up 1099 filing for our business?
If starting before December 1: We can set up complete 1099 filing in 1-2 weeks—migrate vendors to Bill.com, collect missing W-9s (may take 2 weeks for all vendors to respond), validate TINs with IRS, categorize historical payments. If starting in December: Still possible but tight timeline—we prioritize W-9 collection for contractors paid $600+ (may need to use backup withholding for non-responsive vendors), fast-track TIN validation, and file by January 31. If starting in January: Very tight but doable—we focus on high-payment contractors first, may need to file some 1099s slightly late (negotiate IRS penalty relief), and get you compliant ASAP. Best practice: Onboard by November 1 for stress-free filing.
Can you handle 1099 corrections if we filed incorrectly in past years?
Yes, we can file corrected 1099s (Form 1099-NEC or 1099-MISC with 'CORRECTED' checkbox marked) for any past year. Common reasons for corrections: (1) wrong TIN or legal name on original form, (2) incorrect payment amount, (3) wrong box classification, (4) missed filing entirely. Process: (1) identify what needs correction, (2) obtain correct information from vendor if needed, (3) prepare corrected form through Bill.com, (4) file with IRS and provide copy to vendor. IRS accepts corrections anytime—better late than never. If IRS already sent penalty notices, filing corrections often eliminates or reduces penalties. We charge normal $1.99/form rate for corrected filings.
What if a vendor's TIN doesn't match IRS records?
Bill.com flags TIN mismatches immediately when W-9 is submitted (real-time IRS validation). We notify vendor: 'IRS records show legal name [X] but W-9 shows [Y]—please verify.' Vendor options: (1) correct W-9 if they provided wrong information, (2) update IRS records if legal name changed (file name change form with IRS), (3) provide explanation (e.g., DBA name vs legal name). We hold payment until corrected W-9 is validated. If vendor doesn't correct by year-end, we have two options: (1) file 1099 with information we have (risk $290 penalty but shifts liability to vendor), or (2) start backup withholding (24% of payments). Most vendors correct within 48 hours when informed.
Do you handle both 1099-NEC and 1099-MISC or just one type?
We handle all 1099 types: (1) 1099-NEC for contractor/freelancer payments (most common—deadline January 31), (2) 1099-MISC for rent, royalties, prizes, medical payments (deadline varies by box—some January 31, some March 31), (3) 1099-K if you're a payment processor (rare), (4) 1099-INT for interest payments over $10, (5) 1099-DIV for dividend distributions. Most businesses only need 1099-NEC and 1099-MISC. Bill.com handles all types through the same workflow—no additional setup needed. Pricing is same $1.99/form regardless of 1099 type.
What's the advantage of electronic delivery vs. physical mailing?
Electronic delivery (default, included in $1.99/form): (1) instant delivery via email with secure PDF, (2) delivery confirmation when vendor opens/downloads, (3) environmentally friendly—no paper waste, (4) vendors can't claim they didn't receive it (digital proof), (5) vendors can easily save and forward to accountant. Physical mailing (+$1.99/form extra): (1) some vendors prefer paper for record-keeping, (2) required for vendors without email, (3) Bill.com prints, stuffs envelopes, and mails via USPS, (4) takes 5-7 days vs instant for electronic. Recommendation: Electronic for 90% of vendors (free, instant, confirmed delivery), physical only for specifically requested or no-email vendors. Can mix delivery methods—electronic for some vendors, physical for others.
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Let us handle your 1099s through Bill.com. $1.99 per form with bulk partner pricing, January 31 deadline guaranteed, complete IRS and 50-state filing.