Enrolled Agents + 1099 Reporting: The Challenge
As an enrolled agent, preparing bank statements for 1099 reporting is a common but time-consuming task. Businesses issuing 1099s need to verify contractor payments against bank statements. Manually cross-referencing PDFs with payment records is time-consuming and error-prone.
How BankScan AI Helps Enrolled Agents with 1099 Reporting
Batch-convert client bank statements to Excel for fast income verification, deduction substantiation, and IRS examination responses. For 1099 reporting specifically, BankScan AI extracts Payments to each contractor by name and TIN, total annual amount per payee, paym automatically.
How Enrolled Agents Handle 1099 Reporting
When preparing bank statements for 1099 reporting, enrolled agents need to Enrolled Agents review client bank statements to verify income reported on tax returns, identify unreported income during IRS examinations, substantia. BankScan AI automates the data extraction step.
Key terms you'll encounter: IRS examination, correspondence audit, bank deposit analysis, Circular 230.
How It Works
Upload bank statement PDFs
Supports all major banks. Upload Full calendar year (January 1 to December 31), as 1099-NEC and 1099-MISC are reported on a calendar year basis of statements for 1099 reporting.
AI extracts what you need
Our AI extracts Payments to each contractor by name and TIN, total annual am — formatted for enrolled agents workflows.
Complete your 1099 reporting work
Download Excel files ready for 1099 reporting. Payments grouped by contractor/payee with annual totals, cross-referenced against W-9 information on file; separate identification of credit card payments (reported by payment processor, not payer)
Supported Banks
BankScan AI works with all major UK and US banks, including:
Features for Enrolled Agents — 1099 Reporting
- Built for Enrolled Agents — Saves 1-2 hours per IRS examination response on bank statement analysis, plus 20-30 minutes per tax return during filing season on income verification
- Software compatible — Output works directly with Drake Tax, Lacerte, ProConnect Tax
- Built for 1099 Reporting — Convert bank statements to Excel to quickly filter and identify all contractor payments, verify 1099 amounts, and ensure IRS compliance before January filing deadlines.
- Key data extracted — Payments to each contractor by name and TIN, total annual amount per payee, payment method (check, ACH, wire), payments to corporations (generally exempt from 1099)
Compliance: Enrolled Agents + 1099 Reporting
When enrolled agents prepare bank statements for 1099 reporting, specific compliance requirements apply.
- Enrolled Agents are federally licensed by the IRS under Circular 230 and must complete 72 hours of continuing education every 3 years. They have unlimited practice rights before the IRS. They must maintain client confidentiality under IRC Section 7216 and follow IRS e-file requirements. PTIN renewal is required annually.
- Legal basis: Internal Revenue Code sections 6041-6050W (information reporting requirements); IRC section 6721-6722 (penalties for failure to file or furnish correct information returns)
1099 Reporting — Built for Enrolled Agents
1099-NEC due to contractors and IRS by January 31; late filing penalties range from $60 to $310 per form depending on how late, up to $630 for intentional disregard
Try Free — Enrolled Agents + 1099 Reporting