Making sure that electronic documents conform to the Internal Revenue Service’s requirements is one of the primary purposes of IRS Publication 1220. Getting software that is comprehensive and reliable is not always a guarantee for small business tax filers who opt to do in-house tax filing rather than outsourcing to a provider or accountant.
Tax software is a good choice if your business:
- Wants to unify how it electronically files information returns
- Is looking to reduce the end-of-year stress with deadlines
- Needs to eliminate costly tax filing errors
- Has encountered non-compliance issues in the past
Although electronic filing was once optional for many small businesses, it is mandatory in most cases and a much more common requirement now. Eliminate the cost of ordering forms or the hours spent taking care of manual processes and spreadsheets. Basic tax and payroll tools are not always enough. Finding software that keeps you in compliance is essential for any business.
Advanced Micro Solutions’ 1099-etc software is customizable and the most affordable solution on the market for small business users on a budget. Our base W-2/1099 Forms FIler program comes with six optional add-on modules. Whether you only use the base program or you invest in our full-accounting suite of tools, take the time to consider what works best for your specific needs and requirements.
What are the Requirements for IRS Publication 1220?
Each IRS tax form comes with its own requirements and expectations. IRS Publication 1220 is no different. Familiarize yourself with the ins and outs before you commit to a new program.
Strict Formatting Rules
Small formatting errors can lead to the IRS rejecting an entire file. Getting the publication is one way to help you avoid delaying your business’s own compliance or adding to your administrative work. The publication will help specify:
- Exact record layouts
- Character limits
- Coding requirements
- Field positions
Software with electronic filing capabilities is a trusted way of reducing or eliminating certain errors leading up to and during tax season. There is a less than 1% error rate for e-filed tax returns versus 21% for paper returns.
FIRE System Registration and Testing
Low-tech filers who do not have software support will likely have a harder time when they apply for a Transmitter Control Code (TCC). You may need to test your business’s files before making a live submission. Getting software that can guide or support you in the process will improve the entirety of your requirements.
Error Correction and Resubmission Protocols
It is never enjoyable when you need to correct forms or go through a resubmission process, but it does not need to be difficult or entirely unpleasant. The IRS will provide you with an error code that you then need to interpret and correct. Software is how you can translate the codes instead of spending hours trying to troubleshoot.
The Best Tax Software for Small Businesses
Do not sacrifice the tools that you need for the software that you think your business should use. What works for one small business rarely works exactly the same for another one. Get software with core features, such as:
- Simple, guided workflows
- Built-in Publication 1220 compliance
- Intuitive and integrated 1099 tracking
- Direct electronic filing tools
Getting software with step-by-step prompts will help minimize the confusion that you may feel as a low-tech or first-time software user. Speak with your vendor ahead of time and make sure that your software provides clear instructions to reduce mistakes. You should not be expected to rely solely on technical knowledge.
Generating your own tax forms with software that meets IRS Publication 1220 specifications is a must. Invest in a program that does not require each user to understand the technical formatting rules. Compliance is something to always keep in mind, but it should also be integral to software and, to some degree, occur behind the scenes.
Get Started with AMS Software
Small businesses cannot always justify purchasing enterprise-level software that is associated with larger companies. Getting software like ours, which we designed with small businesses in mind, combines a compliance-focused approach with affordability. Users do not need to invest in any unnecessary add-ons that increase the overall cost. To see what makes the most sense for your business, download our free 1099-etc Demo software today. Explore our programs to see how your data interacts with specific tools and features.
Still have questions or not sure whether our software can meet your needs? Consider visiting our Frequently Asked Questions page to see what our other clients have asked us.