Tax Preparers + 1099 Reporting: The Challenge
As tax preparer, 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 Tax Preparers with 1099 Reporting
Convert client bank statements to organized Excel spreadsheets in seconds — verify W-2 income, find deductible expenses, and prepare returns faster during tax season. For 1099 reporting specifically, BankScan AI extracts Payments to each contractor by name and TIN, total annual amount per payee, paym automatically.
How Tax Preparers Handle 1099 Reporting
When preparing bank statements for 1099 reporting, tax preparers need to Tax preparers collect bank statements alongside W-2s, 1099s, and expense receipts during client intake. They review statements to verify reported inco. BankScan AI automates the data extraction step.
Key terms you'll encounter: W-2 matching, 1099 reconciliation, Schedule C, itemized deductions.
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 tax preparers 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 Tax Preparers — 1099 Reporting
- Built for Tax Preparers — Saves 15-20 minutes per return on income verification and expense identification, adding up to 8-12 hours per week during peak tax season
- Software compatible — Output works directly with TurboTax Pro, Drake Tax, TaxSlayer Pro
- 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: Tax Preparers + 1099 Reporting
When tax preparers prepare bank statements for 1099 reporting, specific compliance requirements apply.
- Tax preparers must obtain a PTIN from the IRS and comply with due diligence requirements under IRC Section 6695. Paid preparers must sign returns and include their PTIN. State-level requirements vary, with some states requiring registration, testing, or continuing education. IRS e-file mandates apply to preparers filing more than 10 returns.
- 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 Tax Preparers
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 — Tax Preparers + 1099 Reporting