The burden of a company filing 15 information returns compared to an accounting firm filing 1500 tax returns is vastly different. Tax software costs don’t always reflect this difference.
Another problem is that returns on information are extremely seasonal. Smaller companies might use their software for filing heavily for a few months and only use it for a few months, and then stop using it during the remainder of the year.
It also raises the question of how to purchase. Should an enterprise pay per month for access? Or should the cost of its software be based on the amount it actually files,
TaxFormHero takes the second approach, using per-form pricing rather than signup fees, subscriptions, or seat licenses.
Start With Your Real Filing Volume
It’s not a good idea to judge filing systems solely based on the price they advertise. A better comparison begins with your expected number of returns, as well as the features that you actually require.
TaxFormHero has a price of $1.99 per form. The cost per application decreases with the increase in volume and then reaches $0.45 after 1,000 forms. Companies that file significantly more volume can also discuss custom rates.
For an occasional filer, the absence of a monthly subscription means there’s no reason to cancel it after the filing season. For the CPA managing multiple clients, there is no additional seat licenses that can be purchased because more staff members must be involved in the workflow.
Optional Services should actually be Optional
Not all filers need the same services.
A business might be content using its current system of downloading copies to recipients and then distributing copies. A different business might prefer the provider of filing services handle the distribution.
TaxFormHero 1099 eFiling allows you to download copies for recipients for free. Electronic delivery of recipients and print-and-mail services are offered as paid options. The optional services include TIN verification.
This approach is modular and allows companies to separate the expense of filing from that of additional services, instead of automatically paying for features they do not require.
Organizational issues arise due to scale
Price isn’t the only thing to consider when filing volume rises.
Accounting software can assist an accountant who is working with several companies in arranging their EINs without having a large collection of accounts. TaxFormHero lets multiple payer entities under a single login, and also bulk imports using Excel or CSV.
The solution that combines 1099 filing and W-9 filing should result in an improvement in the administrative burden while still maintaining a clear line of distinction between payer records. Importing structured data is a better way to handle the multiple returns of professionals.
Cost discussion should cover compliance and security
The most inexpensive option for filing may not be the cheapest if it creates additional administrative tasks or isn’t equipped with the tools that the company requires.
TaxFormHero is IRS-authorized and can be used to file electronic 1099s, W-2s and various other tax returns. The company says it uses 256-bit data encryption during and at rest transit, and provides optional two-factor verification. The company claims that it will conduct an independent audit of SOC2 Type II in October 2025 for the Security Trust Service criteria.
The business owner should take into consideration these safety and operational considerations in addition to the cost per transaction.
Purchase for the Filing System You Actually Have
Small businesses, accounting firms and multi-entity companies should not all be required to utilize the same software.
The formula that is most useful takes into consideration the amount of files, number payer entities and the workload of processing data, the need for delivery of information to recipients as well as verification requirements and security expectations.
It’s not necessary maintain a monthly, fixed cost for software if you’re only implementing seasonal compliance. The cost of a pay-per-form structure may fluctuate along with the amount filed, making budgeting easier.