Year-End Tech Check: Tools to Automate 1099 and 1040 Preparation

For CPA & Accounting firms offering tax services in the USA

Why a “Tech Check” Matters Before Year-End

If your team is still moving 1099 and 1040 data around in spreadsheets at year-end, you’re burning hours on work that software can now do faster and more reliably.

Between:

• 1099-NEC/MISC volumes for contractors and vendors
• A surge of 1040s for partners, owners, and high-net-worth clients
• Tight e-filing deadlines and clients sending documents at the last minute

Manual data entry becomes a bottleneck, and partners end up doing triage instead of advisory.

This is where a focused year-end tech check helps: reviewing and tightening the tools that automate data collection, extraction, validation, and e-filing for 1099s and 1040s.

Below is a practical, tool-oriented guide for firm owners and tax leaders who want to reduce keystrokes and make the next busy season less chaotic.

What “Automation” Really Means for 1099 & 1040 Work

When we talk about Technology & Automation in tax, we’re usually talking about tools that:

1. Ingest data
   
   • Pulling vendor or client data directly from your GL/AP, payroll, or practice management system
   • Client-facing portals and apps that let taxpayers upload docs or respond to organizers
     
2. Extract and structure data
   
   • OCR and AI that read 1040 source documents (W-2s, 1099s, 1098s, brokerage statements, K-1s) and map key fields into your tax software
   • Automated TIN/name matching and address validation for 1099s
     
3. Move data into your tax software
   
   • APIs or tight integrations with platforms like UltraTax CS, CCH Axcess, GoSystem, Lacerte, etc.

4. Handle e-filing and delivery
   
   • E-file 1099s with the IRS and states, distribute copies to recipients
   • Assemble, deliver, and track 1040 returns, including e-signatures and payment collection

Think of your tech stack in layers:

Data in → Data processed → Data into tax software → Filed & delivered to clients

Now, let’s talk about the main categories of tools that support those layers.

Category 1: 1099 E-Filing & Automation Platforms

For many firms, 1099s are the most painful year-end project: huge data volumes, fragmented vendor lists, and tight January deadlines.

Modern 1099 automation platforms can:

• Import vendor and payment data from Excel, GL, or AP tools
• Automate TIN matching
• E-file with the IRS and states
• Electronically deliver 1099s to vendors, and optionally print/mail on your behalf

A few well-known examples:

1. Tax1099

Tax1099 is an IRS-approved 1099 e-filing solution used by accountants, CPA firms, and businesses of all sizes. It focuses on accurate e-filing, supports many 1099 form types, and offers workflow aimed at high-volume filers.

Where it helps most:

• Firms with hundreds or thousands of 1099s
• Teams that want to consolidate multi-client filing in one dashboard
• Practices that need to reduce manual printing and mailing

2. Avalara 1099 & W-9 (Track1099)

Avalara’s 1099 & W-9 solution (often known as Track1099) helps simplify e-filing to IRS and states and includes recipient delivery options via email or postal mail.

Good fit for:

• Firms already using Avalara tools for sales tax
• Multi-entity clients with complex 1099 and W-9 compliance needs

3. 1099 Pro

1099 Pro offers an IRS-compliant filing solution with TIN matching, electronic & print delivery, and support for 15+ form types. It’s positioned as a timesaver compared to manual processes, especially where firms once dedicated multiple staff for weeks.

Good fit for:

• Firms that want strong compliance features (TIN matching, federal/state support)
• Outsourced back-office processing for multiple small-business clients

4. 1099 Automation Services from Advisors

Some advisory firms and consultancies offer 1099 automation and e-filing services that combine software and process consulting to help organizations optimize their 1099 workflows.

Key evaluation questions for 1099 tools:

• Does it integrate with your existing GL/AP (e.g., QuickBooks, NetSuite, Xero)?
• Can you map and save templates so each year is “load, review, file” instead of rebuild?
• How easy is it to handle multiple EINs and multiple clients?
• Does it handle state filings and recipient delivery (email + mail)?
• What’s the learning curve for staff?

Category 2: 1040 Automation – From Documents to Populated Returns

On the 1040 side, automation focuses on:

• Collecting documents from taxpayers
• Digitizing and organizing them into standardized workpapers
• Extracting data and pushing it into your 1040 software

1. OCR + Data Extraction (e.g., SurePrep, GruntWorx)

SurePrep offers 1040SCAN and related tools that use OCR and automation to extract data from tax documents and integrate with major tax software like CCH Axcess Tax, GoSystem Tax RS, Lacerte, and UltraTax CS.

GruntWorx similarly helps firms organize, extract, and verify data from tax documents to streamline 1040 preparation.

These tools typically:

• Allow taxpayers or staff to upload scanned or digital documents
• Use OCR/AI to identify document types (W-2, 1099, 1098, K-1, etc.)
• Extract key values and map them to the correct fields in your tax software
• Produce standardized, bookmarked workpapers
  

Impact in practice:

• Less time on manual data entry
• More time on review, planning, and client communication
• Reduced risk of transcription errors and omissions

2. Client Portals & Collaboration Apps (e.g., TaxCaddy)

Apps like TaxCaddy connect taxpayers and tax professionals to handle document gathering, questionnaires, e-signatures, tax payments, and return delivery in one system.

When paired with OCR tools (like SurePrep 1040SCAN), you move toward a fully digital 1040 workflow:

• Engagement letters and organizers are sent and signed electronically
• Clients upload or snap photos of documents
• Data flows from documents → workpapers → tax software with minimal manual touch

Category 3: Tax Software & Integrated Cloud Suites

Your core tax software increasingly acts as a workflow engine, not just a calculation tool.

CCH Axcess Tax

CCH Axcess Tax is a cloud-based, integrated tax preparation platform designed to connect every step of the tax process – form completion, billing, workflow reporting—with strong automation and integration capabilities.

Value for automation:

• Cloud access for distributed teams
• Integration with engagement and workpaper modules
• Links with client collaboration tools and e-sign solutions

Thomson Reuters UltraTax CS & CS Professional Suite

UltraTax CS is a professional tax platform that aims to streamline and automate the tax preparation workflow, especially when integrated with tools like 1040SCAN and TaxCaddy.

CS Professional Suite adds integrated accounting, practice management, and workpapers, allowing firms to share data and processes across the workflow.

Automation benefits:

• Direct import of 1040 workpapers into UltraTax
• Shared data across tax, accounting, and practice management tools
• Reduced redundancy and swivel-chair activity between systems

Category 4: Workflow, Delivery & E-Signature

Even after the return is prepared, there’s still lots of manual work: assembling returns, emailing PDFs, chasing e-signatures, tracking who has or hasn’t signed, and collecting payments.

Solutions like SafeSend One focus on end-to-end automation: from gathering and organizing documents to delivering returns for review, e-sign, and payment, while giving firms real-time visibility into return status.

Typical features include:

• Automated engagement letters & organizers
• E-sign for Form 8879 and other documents (with KBA support where required)
• Deadline reminders and status dashboards
• Integrations with major tax software and portals

Pairing your core tax software with this kind of delivery and e-sign tooling helps you:

• Shorten the time from “ready to file” to “actually filed”
• Reduce partner-time spent chasing signatures
• Give clients a smoother digital experience

How to Choose Tools: A Year-End Evaluation Checklist

When you do your Year-End Tech Check, gather your partners, managers, and operations/IT lead and walk through these questions:

1. Where is manual data entry still happening?

• Are staff keying 1099 vendor details from spreadsheets into e-file websites?
• Are they manually typing values from W-2s and 1099s into 1040 software?
• Are review notes about missing documents handled via email instead of within a workflow tool?

Wherever someone types data that already exists in a system or document, there’s an opportunity for automation.

2. Are we using existing tools to their full capacity?

• Many firms own tax suites that already integrate with document automation or workflow tools—they just haven’t turned them on.
• Check for underused modules in your current stack (e.g., engagement/organizer tools, built-in dashboards, or client portals).

3. Do our tools talk to each other?

• Can your 1099 software pull vendor data from your accounting system?
• Can your 1040 OCR tool push data directly into your tax software?
• Is there a workflow layer or portal where staff and clients can see status without emailing “where’s my return?”

4. What’s the learning curve?

• Automation fails when teams find tools clunky or confusing.
• Favor platforms with good training resources, clear UI, and strong support.

5. How will we measure ROI?

Pick a few metrics:

• Hours per 100 returns (1099 and 1040)
• Number of manual adjustments per return
• Rework percentage or error rate
• Days from “docs received” to “return completed”

Then benchmark before and after implementing automation.

People + Tech: Combining Automation with Specialist Tax Talent

Even the best automation tools need people who know how to design workflows, check edge cases, and handle judgment-heavy tasks.

Many US firms now pair their automation stack with specialist tax talent models—including offshore/onshore “seat” models—to keep work moving while partners focus on planning and high-value conversations.

For example, solutions like our USA Tax Seat provide dedicated tax associates and seniors who plug into your existing tech stack (UltraTax, CCH Axcess, portals, 1099 tools, etc.) and operate as an extended team under your supervision. The goal is to scale capacity for US tax preparation—1099s and 1040s included—without adding local hiring headaches or sacrificing control.

You don’t have to use a seat model, of course. But when your tech stack is in place, having skilled people to:

• Set up templates and integrations
• Monitor queues and handle exceptions
• Perform first-pass or final reviews

ensures your investment in Technology & Automation actually translates to smoother busy seasons.

If you do explore this route, make sure any partner you consider:

• Works inside your systems (not their own black box)
• Follows your firm’s security, confidentiality, and workflow standards
• Has proven experience with US tax preparation for 1099 and 1040

A 90-Day Year-End Tech Action Plan

To keep this practical, here’s a simple roadmap you can start now and refine each year.

Weeks 1–2: Map the Pain

• List all tools currently used for 1099 and 1040 preparation.
• Have seniors/managers highlight where manual work spikes (data entry, chasing docs, e-sign follow-ups).
• Identify “quick win” areas (e.g., 1099 filing, 1040 document intake).

Weeks 3–6: Pilot Automation

• Shortlist 1–2 1099 platforms and 1–2 1040 automation/workflow tools that fit your stack.
• Run a limited pilot with a few clients or one entity.
• Track hours spent vs. your usual process.

Weeks 7–10: Standardize & Train

• Choose your core tools.
• Document standard processes (SOPs) for:
  • 1099 data import, review, and filing
  • 1040 intake, workpaper creation, data push, and review
• Train staff and assign an internal “product owner” for each tool.

Weeks 11–12: Layer in Capacity

• Identify where partners/seniors are still stuck doing “work that software + staff could do”—missing items tracking, first-pass review, etc.
• Decide whether to hire, reassign internal staff, or explore flexible models like a US tax seat to handle volume during peak season.

Year-end will probably never feel “relaxed” for a tax practice—but it doesn’t have to feel like chaos.

By treating your Year-End Tech Check as a recurring exercise—reviewing, piloting, and refining your 1099 and 1040 automation stack – you can:

• Cut manual data entry dramatically
• Reduce filing errors and rework
• Give your team more breathing room for advisory work
• And scale tax services without constantly adding local headcount

Start small: pick one 1099 tool and one 1040 automation workflow to test this year. The compounding payoff over the next few busy seasons can be huge.

If you’re evaluating 1099 and 1040 automation solutions for the upcoming filing season, schedule a call and we’ll walk you through a practical implementation roadmap tailored for CPA firms.