Quickview: A Tool to Tackle Tax Filing

Turning the calendar from 2011 to 2012 means the start of a new tax year and a new set of tax-related tasks to complete. One of those tasks is making sure you file Form 1099-MISC for any payments of at least $600 that you made to consultants and contractors in the prior year.

Most of you typically have just a few individuals to whom you must issue Form 1099-MISC. Nevertheless, filing such forms and sending copies to both the contractor and the IRS can be tedious. In addition, penalties for failing to timely file Form 1099-MISC will double in 2012 for each late form.

To manage the form-filing process for my own business, I've found a good resource in the services offered by WageFiling.com. For an affordable $3.49 per 1099-MISC (and Form W-2), WageFiling.com lets you prepare, print, and e-File forms all from the Web-based service.

WageFiling.com steps you through the process of entering your company information, payee information, and payment amounts for each form. Once you complete the purchase of your forms, WageFiling.com will automatically e-File them to the IRS. You also can print copies for your payees and for your own records. I typically print payee copies to password-protected PDF files and deliver them to my contractors via shared Dropbox or Box.net folders. You also receive an email confirmation when the IRS receives your forms, generally within about 48 to 72 hours.

This service might be just what you need if you have a small number of Form-1099s to file. In addition to WageFiling.com, the IRS publishes a list of providers that offer a wide array of functionality and services, including the ability to import information from QuickBooks. If there's one you like in particular, let me know by leaving a comment below.