Paperless Reporting to Payees/Recipients with

TO PRINT ON PAPER use this Icon Do NOT use Print.

Instead of creating 1099s on blank paper with your laser printer, 1099 Express can create an encrypted, password protected PDF file for each recipient. You must install a simple ActiveX control, see HOW TO CREATE PDF files below.

Each PDF file contains that person's 1099 form exactly as it would appear if created on blank paper. The password is the person's Tax ID number. The PDF cannot be opened unless the recipient knows his/her Tax ID number. Since the PDF is secure and password protected, it can be sent by e-Mail. For additional security the person's Tax ID number can be MASKED.

PAPERLESS ON YOUR OWN (FREE with 1099 Express) SERVICE BUREAU METHOD (a FEE Applies)

Step 1: What you do first. Step 2: What we do.
Step 3: What you do within minutes or hours after the e-Mails are sent.
If you have that person's e-Mail address, you can safely e-Mail each person's 1099 as an attachment. In the body of the e-Mail you must explain 1.) that his Tax ID number, is his password to open the attached PDF file and 2.) the recipient must reply that he received the e-Mail, otherwise you must mail a paper form. See the suggested e-Mail body below.

How To Create PDF files: Security: Sensitive Personal Information (SPI) must be not be disclosed and should be kept private. The password does that. Also the PDF is encrypted, so it can't be viewed with other software, for example Notepad. Disclosure of SPI could result in identity theft or possible legal action. SPI includes a person's Tax ID number, name, address, money amounts, account number, etc. Since this information is on the 1099, the PDF file is MUST BE password protected and encrypted if it will be e-Mailed.

PDF Creation OPTIONS:

Print Range: Set the starting and ending line in 1099 Express. You can create any range of payees.

Number of Files: Put each payee's form in a separate PDF file or all payees in one PDF file, for your records or to archive, or e-Mail.

Security (Passwords): Set the Security Radio buttons to either password protect or not. If you choose to password protect, each PDF has two passwords; a Master Password for you, and a User Password for the recipient. Before sending any PDF file to the outside world, verify that the PDF cannot be opened and both passwords work to open the file.

Master Password: The the Master Password is the same for all PDFs you create. If you know the Master Password, you can open and verify any PDF you create. The master password is your Program Serial Number, found at the Help/About Menu. Keep the Master Password secret at all times.

User Password: When 1099s are saved in SEPARATE PDF FILES the User Password is automatically that recipient's Tax ID number without dashes. When all 1099 forms are saved in ONE PDF FILE, you must set the User Password to something like "jane" or "richard", when asked to do so. Clicking CANCEL will at that question will stop all password protection and leave the PDF with no password protection, even if the Radio buttons state otherwise.

Filename Options:
Option 1: You can create a filename like this: 00002Edward-Mil1099-Misc-2009-6989-William-A.-Jones.pdf This PDF filename contains several items: a sequence number, company name, form type, tax year, right most TaxID digits, and payee name.

Option 2: Or you can create a filename from the account number column 14, OR ANY COLUMN in the 1099 Express grid by specifying the column number. This method assumes you have imported or typed the payee's e-Mail address in that column. For example the account number column is 14, then BAR column is 6, the RES or reserved column is 27 in the 1099 Express grid.
 
Masking: The IRS now has a special pilot program under Notice 2009-93 that allows you to mask tax ID numbers, for example XXXXX1234, see MASKING. Masking was intended by the IRS as extra security for mailed paper forms. However, it can also be used to provide extra security when e-Mailing PDF forms to recipients. It's an elegant solution: If the recipient can open the PDF, then he already knows the masked numbers in the PDF.

Authority: In the 1099 series General Instructions, for this year, Section M, ~ Page 11, see the heading Electronic recipient statements (in the left column). Under these rules: you may e-Mail all 1099 series forms except form 1098-C. The recipient must basically give his consent and be able to generated a printed copy. Therefore we suggested the following:


Suggested e-Mail:

Subject: Did you get this 1099? Please reply

Body:

Dear 1099 Recipient:

Your 1099 form for tax year 20xx is attached as a PDF file. Your Tax ID number (SSN or EIN) is your password to open and print the attached PDF file. If you were able to open and print this PDF attachment, PLEASE  REPLY TO THIS E-MAIL, otherwise under IRS rules, WE MUST SEND YOUR COPY BY REGULAR US MAIL.

So please reply, and help us save paper and envelopes. Just say "we printed it". Thanks for consenting to allow us to send your 1099 by e-Mail. We appreciate it.

Sincerely, My Company Name..


Due Dates: 1099 Series forms to recipients are due at the same time whether by e-Mail or US Post Office. That date is usually January 31. However, there are some exceptions. See Due Dates.

System Requirements: 1099 Express will work on any Windows system from Windows 95 to the most current. The ActiveX PDF control requires Windows XP and later operating systems. Thus, you can not create PDF files on older computers such as Windows 95, Windows 98 and Windows ME.

PDF Files: PDF means Portable Document Format. PDF files may be used on virtually any computer including Windows, Apple (Mac), many Handheld devices, Unix platforms and more. PDF file format is standard created by Adobe Corporation.
 
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