1099 Form Processing, Collection & Terms
Last Updated: 03/01/2022
Processing & collection:
As outlined in Client MSAs, DisburseCloud may support issuing and filing 1099 Forms, by request of its Clients/Subscribers and on behalf of their End Users.
1. Relevant End User data (per W-9 Form Alternatives) is collected from Client/Subscriber for 1099 issuance and filing.
2. At the end of the tax year, DisburseCloud files and issues 1099 tax forms to the Internal Revenue Service (IRS), Filing State and Payee, retaining a copy for the Payer.
- IRS submissions are processed through the IRS FIRE (Filing Information Returns Electronically) system.
- State tax returns are filed according to individual state requirements.
- Tax forms are delivered to individuals based on combined state and federal requirements, and are available indefinitely to the Payer and Payee via developer tools provided to Payer.
DisburseCloud files and issues 1099 Forms by collecting data from a Form W-9 or a substitute Form W-9*, utilizing End User data which may include, but is not limited to, the following:
*Clients/Subscribers/Payers may provide W-9 Form equivalent information in bulk which results in DisburseCloud processing a large data file of “W-9 Form Alternatives”. In such cases, DisburseCloud does not process the actual forms, but requires Payers to keep original W-9 Forms for their tax compliance requirements.
DisburseCloud’s required End User consent language:
(To be added to contract with End User by Client/Subscriber)
By utilizing [Client or Subscriber]'s services you agree to and confirm that you understand the following:
- You are opting in to receiving an electronic copy of your Form 1099 Information Return.
- You will receive an electronic Form 1099 from each business that has paid you via [Client or Subscriber], unless they opt out of using our Form 1099 filing service.
- [If applicable] You can opt out of receiving an electronic copy and instead receive a hard copy mailed to your physical address by visiting your [Client or Subscriber] account settings and changing your preference.
- This consent to receive an electronic Form 1099 will remain in place until you opt out.
- Any electronic Forms 1099 made available to you will remain available [Client or Subscriber defined data retention period] or until you request that your [Client or Subscriber] account be closed and/or deleted.
- For any questions, concerns, changes or any other issues, contact [insert Client or Subscriber contact methods].