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Tax1099 Integration: Setup and E-Filing

Connect Tax1099, an IRS-authorized e-file provider from Zenwork, to DualEntry to file your 1099 forms electronically. DualEntry computes each vendor’s reportable totals from posted payments, you review and adjust them, and the integration transmits the forms to the IRS through Tax1099 and tracks their acceptance. This integration is the filing step for the data described in 1099 tracking: tracking happens in DualEntry, and Tax1099 handles transmission.

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Prerequisites

Confirm the following before connecting:
  • A Tax1099 account with API access enabled. You generate the API credentials in the Tax1099 portal under Settings → API.
  • Your 1099-eligible vendors set up with a taxpayer identification number (TIN) and a legal name that matches IRS records. Vendors without a TIN are skipped.
  • The GL accounts that carry 1099 spend tagged with their 1099 box category (for example, a nonemployee compensation account tagged NEC), so DualEntry can sort each payment into the right form box. See chart of accounts.
  • The DualEntry company that files as the payer, with its own TIN, legal name, and address complete. The payer details print on every form.

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How the Tax1099 integration works

DualEntry computes the 1099 data and Tax1099 transmits it to the IRS, so the two systems split the work cleanly. DualEntry never becomes the system of record for IRS submission state; it mirrors the status Tax1099 reports. You run the filing in DualEntry as a 1099 run for one tax year and company. The run moves through clear stages: DualEntry computes each eligible vendor’s amounts, you review and adjust them, DualEntry finalizes the lines, and then the integration submits them to Tax1099. After submission, DualEntry tracks each form’s status back from Tax1099 and rolls the run up to accepted, rejected, or partial. The integration supports the four common 1099 forms: 1099-NEC, 1099-MISC, 1099-INT, and 1099-DIV. Tax1099 also returns the official form PDFs and can match recipient TINs against IRS records before you file.
DualEntry computes 1099 amounts on a cash basis: a payment counts toward the tax year in which it was paid, not when the bill was dated. Totals therefore reflect what you actually paid each vendor during the calendar year.

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Connect the integration

Authorize DualEntry to call Tax1099 with the API credentials from your Tax1099 portal. The integration is organization-wide, not per company.
  1. In the Tax1099 portal, open Settings → API and copy your login, password, and app key.
  2. In DualEntry, open Settings → Integrations → Tax1099.
  3. Enter the login, password, and app key, then choose Connect.
  4. DualEntry validates the credentials by authenticating against Tax1099. On success the integration is marked Connected; if authentication fails, DualEntry reports the error and leaves the integration pending.
You can re-validate the connection at any time, which re-authenticates and marks the integration disconnected if the credentials have stopped working. Update the credentials and reconnect if Tax1099 rotates your app key.

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Compute 1099 amounts

DualEntry computes reportable totals for every eligible vendor when you start a 1099 run for a tax year and company. A vendor is eligible when it is active, marked 1099-eligible, and has a TIN on file. For each eligible vendor, DualEntry sums the posted payments in the tax year and sorts them into form boxes using the 1099 box category on each GL account. Amounts are computed on a cash basis using the payment date, and any net-negative box is capped at zero so a refund never produces a negative form amount. The run records a computed line per vendor, form type, and box, each with an audit breakdown of the entries that built it. Vendors without a TIN, inactive vendors, and vendors not marked 1099-eligible are left out of the computation. Fix the vendor record and recompute to bring a missing vendor in. Because computation reads posted payments, void or reverse a payment and recompute if a total looks wrong.

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Review and adjust before filing

Before filing, you review the computed lines and apply adjustments so the final amounts match what you intend to report. DualEntry materializes a final line per vendor and box from the computed amounts plus your adjustments. The adjustment types are:
  • Exclude vendor. Drop a vendor from the filing while keeping the computed line for audit.
  • Include vendor. Force a vendor to file even though the amount is below the IRS threshold.
  • Fixed amount. Replace the computed amount for a box with a value you enter.
  • Delta amount. Add to or subtract from the computed amount for a box.
  • Manual recipient. Add a recipient and amount that did not come from your ledger.
DualEntry compares each final amount to the IRS reporting threshold (for example, $600 for 1099-NEC) and flags lines below it, which you can still file with an include adjustment. Finalizing the run produces the final lines and moves the run into review status, ready to submit.
The recipient TIN and legal name on each form must match IRS records, or the IRS rejects the form during e-filing. Verify TINs (the integration can match them against IRS records through Tax1099) and confirm each legal name against the vendor’s W-9 before you submit.

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File forms through Tax1099

Once the run is finalized, the integration submits the forms to the IRS through Tax1099. DualEntry registers your payer company with Tax1099 (its TIN, legal name, and address), validates each form against Tax1099’s rules, imports the finalized form data, and submits it for filing. These steps run in sequence for you; you do not call Tax1099 directly or upload a file by hand. You can run a TIN match through Tax1099 first to catch recipient TIN and name mismatches before they cause a rejection, which is cheaper than correcting a rejected filing. After forms are submitted, DualEntry retrieves the official form PDFs from Tax1099, including a summary PDF, so you have filing copies for your records and for furnishing to recipients. Validation errors that Tax1099 returns are surfaced on the run so you can fix the data and resubmit. If the IRS rejects a form, correct the underlying vendor data, then resubmit that form through the integration without refiling the whole run.

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Track filing status

After submission, DualEntry tracks each form’s status from Tax1099 so you always see where a filing stands. Tax1099 reports status changes back to DualEntry as the IRS processes each form. Each form moves through pending import, imported, pending submit, processing, and then a final status of accepted, rejected, or blocked. DualEntry rolls the individual form statuses up to the run: the run is accepted when every form is accepted, rejected when every form is rejected, and partial when the results are mixed or any form is blocked. A rejected or blocked form can be corrected and resubmitted, after which its status updates again. Because status updates arrive from Tax1099 asynchronously, a run can sit in processing until the IRS finishes. Check the run to see the current per-form status rather than assuming submission means acceptance.

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Current limitations

A few constraints are worth knowing before you rely on the integration:
  • US 1099 forms only. The integration files 1099-NEC, 1099-MISC, 1099-INT, and 1099-DIV. It does not handle W-2s or other information returns.
  • Cash-basis computation. Amounts are recognized on the payment date, not the bill date.
  • One payer company per run. A run files for a single company as the payer. File separate runs for separate filing entities.
  • No automatic recompute. If payments change after you compute a run, recompute it; DualEntry does not refresh a finalized run on its own.
  • Filing state mirrors Tax1099. DualEntry reflects the status Tax1099 reports and does not file directly with the IRS itself.

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Troubleshoot filing errors

When connection or filing fails, the most common causes are below.
SymptomCauseResolution
Connection or validation failsThe login, password, or app key is wrong or was rotated in Tax1099.Re-copy the credentials from Settings → API in the Tax1099 portal and reconnect.
A vendor is missing from computed amountsThe vendor is inactive, not marked 1099-eligible, or has no TIN.Correct the vendor record, then recompute the run.
An amount lands in the wrong box or is missingThe GL account is not tagged with a 1099 box category.Set the 1099 box category on the account and recompute.
A vendor below the threshold is not filedThe amount is under the IRS reporting threshold.Add an include adjustment to file the vendor anyway.
The IRS rejects a formThe recipient TIN or legal name does not match IRS records.Correct the vendor’s TIN and legal name, then resubmit the form.
A form is blockedTax1099 flagged the form, often from a failed TIN match.Resolve the flag in Tax1099, then resubmit.

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For maintainers

The details below describe connector configuration and internal endpoints, not user-facing features.
  • Provider: Tax1099 by Zenwork, on the 1099cloud.com API hosts (base https://tax1099api.1099cloud.com/api, with payer, payment, recipient, and per-form hosts for NEC, MISC, INT, and DIV). Authentication is an OAuth password grant; access tokens refresh automatically.
  • Credentials (Integration.credentials, auth type API key, organization-level): login, password, and app_key, generated at https://app.tax1099.com/Settings/API. The app_key is sent as the OAuth client ID.
  • API endpoints (router Integrations - Tax1099): GET /credentials/ lists integrations; POST /credentials/ creates or updates and authenticates (sets status to Connected); POST /credentials/{integration_id}/validate/ re-validates; DELETE /credentials/{integration_id}/ removes the integration.
  • Provider operations: register_payer, register_recipients, validate_forms, import_forms, submit_forms, get_form_statuses, get_form_pdf(s), get_summary_pdfs, verify_tins, resubmit_rejected_forms, and submit_imported_forms. A secret-validated webhook callback updates external form status asynchronously.
  • Run lifecycle (Tax1099Run.RunStatus): DRAFT, COMPUTING, COMPUTED, REVIEW, then ACCEPTED, REJECTED, or PARTIAL. External form statuses: PENDING_IMPORT, IMPORTED, PENDING_SUBMIT, PENDING, PROCESSING, ACCEPTED, REJECTED, BLOCKED, RESUBMIT, RESUBMITTED.
  • Compute: cash-basis over vendor payment, refund, prepayment, prepayment application, direct expense, and journal entry transactions; box from Account.category_1099 (for example, NEC-Box 1); weighted allocation; negatives capped at zero. Adjustment types: EXCLUDE_VENDOR, INCLUDE_VENDOR, AMOUNT_FIXED, AMOUNT_DELTA, MANUAL_RECIPIENT. IRS thresholds default to $600.

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Result

After completing these steps, you can compute your 1099 totals in DualEntry, review and adjust them, and e-file 1099-NEC, MISC, INT, and DIV forms to the IRS through Tax1099, then track each form to acceptance. DualEntry holds the computed data and mirrors the filing status; Tax1099 transmits the forms. To prepare the vendor and account data that feeds a run, see 1099 tracking and vendor payments. To compare other tax integrations, see Avalara AvaTax. To connect additional systems, return to Integrations.
Last modified on June 10, 2026