Then and Now: How the Electronic 1099 Form has Transformed Filing with the IRS

The electronic 1099 form is a staple of modern business tax filings, but it wasn’t always that way. One of the first things that people ask when we tell them we have 30+ years of experience providing w-2, 1099, and payroll solutions for small and medium-sized businesses: Was software even around 30 years ago? Yes! But just barely and not in the way people think of it today.

The History of the Electronic 1099 Form

Throughout the 80s, tax collection and data records were becoming increasingly cumbersome—both because of the rapidly growing number of filers, as well as the increasing complexity of the filing forms themselves. It was in 1986 that the IRS launched its pilot program involving five tax preparers in three different cities. The technology was called the Unisys System, which used an early-version modem called a Miltron and a “super mini computer” called a Zilog. Today, well over 100 million returns are filed electronically each year.

It’s easy to say that necessity is the mother of all inventions, but it’s not exactly like the IRS said help, and the Internet and electronic communications were born the next day. In fact, it’s just as easy to turn the story on its head. A huge part of the economic prosperity experienced during the 90s was due to the early days of the Internet and the dot-com boom. In other words, the Internet and Information Age played a huge role toward increased economic activity and tax filing complexity.

Public-Private Sector Cooperation

This impact is still seen today. With online communications and widespread globalization has come a huge increase in 1042-S filing forms—used for foreign persons and entities. Likewise, work-from-home professionals increasingly exist in a gray area between employee and self-employed contractor. So much so that the IRS now issues form SS-8 that workers and businesses can use to make an official determination of their status as an employee or independent contractor. This is just one of the ways in which both the public and private sector have had to rapidly adapt to modern economic realities.

Advanced Micro Solutions (AMS) and the Internal Revenue Service (IRS) are themselves emblematic of this public-private sector cooperation. Our E-File Direct product includes the necessary IRS “FIRE” system and SSA “BSO”/”ACCUWAGE” system used to communicate your electronic 1099 form securely and directly with the relevant tax agencies. Now, there’s nothing unique about this software when it comes to AMS, but when it comes to integrating these software features with your larger data management and filing needs, this is where AMS makes a difference.

Getting Started with AMS for Your Electronic 1099 Form

Don’t underestimate the difference of our W-2/1099 Forms Filer, either. Our data entry features eliminate virtually all duplicate data input. Our printing capability includes easy form alignment, automated scheduling, and large-batch jobs for error-free data printing on pre-printed forms that you can get done during the overnight hours. Powerful networking and security features are also part of this platform solution.

From there, you can add whichever product modules make sense for your business including e-filing capabilities:

  • W-2/1099 Forms Filer (required platform)
  • E-File Direct
  • Software-Generated Forms
  • Payroll Module
  • Affordable Care Act Filer
  • 1042-S Filer
  • Forms Filer Plus

Don’t hesitate to find the support you need. Buy your software, download the free demo, or call our Sales and Information team at (800) 536-1099.

Software Solutions from AMS

Our W-2 and 1099 Forms Filer is our only required platform. From there, users pick the services they need. Choose from the tools below to build out your customized accounting software.