Free 1099 E-Filing
E-filing 1099 forms on time keeps you compliant and on the right side of the law. The IRS offers a free e-filing service called the Information Returns Intake System or IRIS. It gives businesses the ability to e-file at no cost. However, while the IRS IRIS 1099 free file system is available for basic filings, it lacks the automation and TIN matching capabilities that businesses need.
Many businesses are searching for free 1099 filing for businesses to reduce their tax compliance costs without sacrificing compliance standards.
A straightforward workflow for cost-effective 1099 filing online can help your business avoid TIN mismatches, backup withholding issues, and IRS/state penalties.
1099 Pre-Filing 1099 Compliance Checklist
Before you start e-filing your 1099 forms, keep these documents and details ready:
| Step | Documents to Collect | Why is it needed? |
|---|---|---|
| 1 | W-9s (name + TIN) | Confirms identity and avoids 24% backup withholding |
| 2 | Payment records by EIN/SSN | Checks if payments cross $600 (NEC/MISC) or $10, or other (INT/DIV) thresholds |
| 3 | Form-selection matrix | Using the correct forms ensures that there is no error in reporting. Ensures the correct 1099 types: rent (MISC Box 1), services (NEC), prizes (MISC Box 3), etc. |
| 4 | State-nexus check | Identifies if you need separate state filings |
| 5 | Record-storage | Store returns for at least 3-4 years; one longer than IRS minimum |
Your Business Eligible For The IRS IRIS 1099 Free File Portal?
Any business or entity with an EIN and tax professionals can e-file 1099 and other related IRS forms via the IRIS portal. You just need to obtain an IRIS TCC or a Transmitter Control Code (TCC), a unique five-digit alphanumeric code assigned by the IRS. Companies or individuals submitting bulk information returns on behalf of others can also use the IRS IRS portal.
How to File 1099 For Free Online with the IRIS Portal?
- Sign up or log in via ID.me account
- Apply for a Transmitter Control Code (TCC)
- Add your business profile (EIN, legal name, and address)
- Receive a Transmitter Control Code (TCC).
- Upload recipient data manually or import a CSV
- Double-check TIN to avoid rejections.
- Select the 1099 form type & tax year.
- Fill in the details and leave any unused fields blank.
- The IRIS portal validates the file schema and will reject any invalid TINs
- Generate and download recipient copies.
- Review and submit the form and save the acceptance PDF
- Track the filing status (“Accepted,” “Accepted with Errors,” or “Rejected”)
When Free 1099 Filing Isn’t Enough
For most businesses that file 1099s, a free portal is not enough. The IRIS portal, with its bare-bones nature, lack of features, plus the 100-form-per-submission limit, may not suffice for more complex filing workflows. Here’s how free IRIS compares with an affordable 1099 e-file like 1099Online:
| IRIS Limitation | 1099Online Advantage |
|---|---|
| No pre-submission TIN-Match | Built-in IRS TIN-Match with quick results |
| Manual recipient delivery | Secure email PDFs + optional USPS mailing |
| Single-login portal | Multi-EIN dashboard with role-based access |
| No batch reprints | 4-year PDF archive + free re-file of rejects |
Correcting Frequent Mistakes
| Error | Solution |
|---|---|
| Using the wrong form like reporting services on 1099-MISC instead of 1099-NEC | Use 1099Online’s form-selector wizard |
| Sending recipient copies (Copy B) after Jan 31 | Schedule secure e-delivery via 1099Online or send PDFs from IRIS |
| Invalid TINs triggers 24% backup withholding | Run a TIN-Match in 1099Online before filing |
| Not filing for non-CF/SF states (they need separate uploads) | Keep a state filing calendar handy |
| Duplicate CSV uploads causes double submission errors | Check 1099Online’s per-form preview before payment |
State-Level Compliance Made Simple
Here are some state filing rules that payers should know:
- CF/SF basics: The IRS forwards 1099 forms to states participating in the CF/SF program.
- File directly with the state: States like Oregon, Pennsylvania, and New Jersey require direct 1099 e-filing through their own state portals.
- No-tax states: No-income-tax states generally do not require state 1099 NEC/MISC filings. However, there are a few exceptions, like Florida, which requires a state 1099-K.
- Different deadlines: Many states have their own 1099 filing deadlines that you need to follow.
Best practice: Always run a year-end state nexus review and map out each state’s deadlines with the 1099Online federal e-file workflow.
Cost Breakdown: Free, Low-Cost, or Full-Service?
| Feature | IRS IRIS (Free) | 1099Online (Low-Cost) | CPA/Payroll Provider (Full Service) |
|---|---|---|---|
| Base price per form | $0 | As low as $0.69 per form | $8-$15 per form |
| Pre-submission TIN-Match | No | Optional add-on | Yes |
| Recipient delivery (email/USPS) | DIY | Yes | Yes |
| Multiple EINs and role access | Limited | Yes | Yes |
| Support channels | FAQs, Phone (often slow or unavailable during peak periods) | Chat and email | Phone and email |
Bottom line: IRIS is free, but it is time-intensive. 1099Online is a low-cost 1099 submission portal that makes federal filing easier and more accurate.
FAQs
1. Is IRIS free to use?
The IRIS platform is free for filing, but mailing copies to the recipient and direct state filings are the payer’s responsibility.
2. Is 1099Online free for filing?
1099Online charges a minimal $0.69 per-form fee and includes access to TIN match, bulk file uploads, and recipient delivery.
3. Can a payer correct an error for free?
Yes, IRIS lets payers correct forms freely. Even 1099Online allows unlimited corrections within its fee structure.
4. What to do when multiple EINs are involved?
With IRIS, you must create a separate profile for every EIN. With 1099Online, you can handle multiple EINs from a single login.
5. Is the $600 rule applicable to corporations?
Corporations are exempt from the $600 rule, with the exceptions being medical and legal payments.
6. How long should payers keep records?
The IRS expects records to be kept for three years, but keeping them for four years is a best practicein case of an audit.
Pay $0.69 and get access to bulk uploads, TIN matching, & easy recipient delivery.
Explore plans at 1099Online.