January always feels packed for CPA firms. Deadlines stack, clients rush in with last-minute questions, and information returns ramp up just as the year-end close begins. The timeline is tight on its own, but the volume makes things tougher.
The IRS processed more than 72 million 1099-NEC forms in a recent filing year and over 43 million 1099-MISC forms, and those numbers keep drifting up. When that much activity funnels into a single month, firms feel it.
A better way to think about the problem is this: It is not just the forms. It is everything wrapped around them, including data cleanup, W-9 chasing, TIN mismatches, and the pressure to keep IRS 1099 compliance steady. That mix often pushes CPAs toward burnout.
Services that let firms outsource 1099 processing solve the work at the point of friction, not at the point of filing. And that turns January into a workflow you can control.
Why 1099 Season Overwhelms CPA Firms More Each Year
CPAs start the season at a disadvantage because so much of the workload is frontloaded into a single deadline. 1099 NEC filing lands on January 31 every year, and the IRS expects both the agency and recipients to receive it by that date. The timing leaves very little room for human error or late client communication. Firms also now fall under the 10-form electronic filing requirement, meaning anyone issuing more than a handful of returns must submit everything through a compliant 1099 e-file system.
Instead of relying on scattered manual uploads, CPAs must coordinate structured digital files. On the other hand, penalties have also climbed. A late or incorrect form can cost $310 per return for 2024 submissions, and intentional disregard climbs even higher.
The problem is not that CPAs lack skill. It is that the system creates a bottleneck at the exact moment firms already operate at capacity. A 1099 filing software absorbs that bottleneck by removing the most time-sensitive tasks from staff who need breathing room.
The Hidden Workflow Bottlenecks That Create Filing Errors and Delays
Most January challenges do not appear on a calendar. They show up in the small tasks that eat an entire afternoon.
Missing vendor W-9s are a good example. Many clients collect them late or send partial information, and CPAs end up digging through emails just to find a correct address or TIN. Name-TIN mismatches occur often enough that the IRS provides comprehensive guidance on penalty relief, indicating how common the issue is.
Manual entry is another strain. Firms pull data from accounting systems, spreadsheets, or AP platforms, and someone must key that information into the filing software. A small slip, like an extra digit or a missing hyphen, creates a mismatch that the IRS rejects. The back-and-forth rework drains time that should have gone toward advisory or early tax prep.
Staffing shortages also play a part. Many firms operate with lean teams, and seasonal hiring has become harder after repeated busy-season burnout cycles.
These bottlenecks make the case for a different structure. When a firm shifts to filing 1099s online through a provider with validation tools, those manual steps stop clogging the system.
How Outsourcing Transforms 1099 Data Intake, Validation, and Filing
Outsourcing does not remove the CPA from the process. It removes the friction around it. The workflow usually starts with a secure portal where staff upload a CSV export from an accounting system, rather than typing each line by hand. The vendor runs the file through a formatting check and TIN-matching system.
After the data clears review, the service generates proofs for every form: 1099 NEC filing, 1099 MISC filing, and other 1099 types a client might need. CPAs look over the proofs, make edits if necessary, and approve the batch. From there, the provider handles the entire submission through compliant 1099 e-file channels, whether the IRS requires FIRE or IRIS formatting.
Outsourcing includes automated print and mail 1099 production, so recipients get their forms without CPA staff printing, folding, or chasing postage. When corrections come up, because someone always finds a late vendor detail, the provider processes the corrected return and re-files it. The result is a steadier system that does not crack when forms spike.
The Operational and Client-Facing Advantages for CPA Firms
When CPAs drop the administrative load, the benefits show up on both sides of the relationship. Firms gain hours they normally lose to repetitive cleanup, letting staff focus on higher-value work. January becomes less reactive and more orderly. Clients also feel the improvement. Faster turnaround means fewer anxious emails, and accurate filings mean fewer penalty surprises.
Another advantage shows up when firms manage high-volume clients. A contractor-heavy business might generate hundreds of forms. And an internal team can struggle to keep pace with that, especially when vendor details come in late. Outsourcing easily absorbs volume because the provider’s systems scale up with the workload. Similarly, firms feel more comfortable taking on additional clients when they are not worried about the January bottleneck repeating every year.
Compliance becomes more reliable as well. TIN-matching and structured validations reduce the errors that trigger penalties, and firms stay aligned with IRS 1099 compliance rules with less oversight.
Turning 1099 Outsourcing Into a Scalable, Revenue-Friendly Service Line
Once firms stabilize the process, outsourcing becomes a service they can package and sell cleanly. A fixed cost per form lets CPAs build predictable pricing into their seasonal offerings. That structure appeals to clients because it provides clarity and to firms because it captures margin without adding staff.
A side effect, and it is an important one, is staff relief. Teams can focus on review work, consulting, and tax prep without juggling envelopes or re-keying vendor lists. The change improves morale and reduces the burnout that often follows the busy season. The firm gains room to grow because its workflow is no longer limited by the physical effort of manual filing.
A More Efficient Tax Season Starts Here
The case for outsourcing becomes clearer when you see all the moving parts together. Firms deal with tight IRS windows, rising volumes, and error risks that climb with every late vendor update. A provider that handles validation, digital submission, and automated fulfillment removes friction at each step. The process becomes steadier. CPAs gain control of their calendar instead of fighting it.
At CheckIssuing, we help firms move from manual entry to streamlined, automated systems that reduce errors and protect client relationships. Our platform manages data intake, TIN checks, 1099 e-file submissions, corrections, and nationwide printing and mailing of 1099 forms. If you want a January that feels predictable, contact us today or set up an appointment with the team here.
Key Takeaways
- CPA firms experience intense January pressure due to compressed deadlines, year-end close, and high volumes of information returns.
- The IRS processes tens of millions of 1099-NEC and 1099-MISC forms each year, putting additional strain on firms during filing season.
- Outsourcing 1099 processing removes major workflow bottlenecks, including W-9 collection, data cleanup, manual entry, and TIN mismatches.
- Filing errors and late submissions can lead to significant IRS penalties, including up to $310 per return and higher for intentional disregard.
- Outsourced 1099 providers streamline intake, validation, and filing through secure platforms that handle data formatting, TIN matching, e-file submissions, and corrections.
- CPA firms benefit operationally and financially by turning outsourced 1099 services into a scalable, revenue-friendly offering.
- Outsourcing helps prevent burnout, improves turnaround time, and strengthens client relationships by providing faster, more accurate filings.
Citations
- U.S. Government Accountability Office (GAO). Information Returns: Actions Needed to Improve Timeliness and Accuracy of Filing. Retrieved from:
https://www.gao.gov/assets/870/863787.pdf - IRS. Information Return Penalties. Retrieved from:
https://www.irs.gov/payments/information-return-penalties