Tax1099 vs Avalara

by Gralio Feb 07, 2025

Tax1099 and Avalara address different tax compliance needs. Tax1099 simplifies the process of filing 1099s and W-2s, while Avalara focuses on automating sales tax compliance for businesses selling across multiple jurisdictions. Choose Tax1099 if your priority is managing IRS information returns. Opt for Avalara if sales tax automation and compliance across different states or countries is your main concern.

At Gralio.ai we help to simplify your decision-making process by offering detailed, side-by-side software comparisons like this one, to help you confidently choose the tool that aligns with your business goals.

This comparison was created by analysing 867 reviews and 55 websites, saving 5 hours, 16 minutes of reading.

Tax1099

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Avalara

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About

Tax1099 is a software platform designed to simplify the process of filing 1099s, W-2s, and other IRS forms electronically. It offers a secure and user-friendly interface for businesses of all sizes to manage their tax filing obligations. With features like data validation, TIN matching, and integration with popular accounting software, Tax1099 streamlines the filing process and helps ensure compliance with IRS regulations. The platform also offers additional tools such as e-delivery of forms, audit trails, and multi-user access.

Avalara is a tax compliance software that automates sales tax calculations, manages tax filings, and ensures businesses comply with regulations in different regions. It integrates with popular e-commerce and accounting software. Avalara primarily serves businesses of all sizes, ranging from small businesses to large enterprises, simplifying their tax processes with accurate, real-time calculations, and automated filing.

Summary

Main difference

Tax1099 is better for businesses primarily needing to manage and file 1099s and other IRS information returns. Avalara is a better choice for businesses focused on automating sales tax calculations, filing, and remittance, especially those selling across multiple states or internationally.

Relative strengths of Tax1099 (compared to Avalara)

Provides comprehensive support for various 1099 forms and other IRS information returns, including corrections and voids.
Offers a user-friendly interface and affordable pricing suitable for small businesses.
Includes time-saving features like data import, e-filing, and direct mailing to recipients.

Relative weaknesses of Tax1099 (compared to Avalara)

Limited integrations compared to Avalara, particularly with e-commerce platforms.
Focuses primarily on IRS information returns, not sales tax automation.
Customer support has mixed reviews, with some reports of slow or unhelpful responses.

Who should use Tax1099 VS. Avalara

Tax1099 simplifies 1099, W-2, and other IRS form e-filing. Its user-friendly interface and automation features, like data import and e-delivery, save businesses time. While some users report occasional glitches and integration issues, many praise its affordability and helpful resources. A tiered subscription plan caters to various budgets.

Avalara automates sales tax compliance, a crucial need for businesses of all sizes, especially in e-commerce. Users praise Avalara's accurate calculations and automated filing, saving them time and effort. However, some have noted issues with customer support and unexpected price increases. If you prioritize accurate tax calculations and automation, Avalara is a strong choice, but be prepared to potentially handle support issues yourself.

Best fit for small to medium-sized businesses needing to streamline 1099 and W-2 filing.
A good fit for businesses in finance, banking, and insurance; suitable for other sectors.

Best fit for small, mid-sized, and enterprise businesses.
Ideal for e-commerce, retail, finance, and various other sectors.

Tax1099 and Avalara features

Supported

Partially supported

Not supported

Type in the name of the feature or in your own words tell us what you need

API integration

Supported

Tax1099 offers API integration for data retrieval and tax form management.

Supported

Avalara offers API integration for data retrieval and other tax functions.
Bulk File Upload

Supported

Tax1099 supports bulk uploads via CSV and Excel templates.

Partially supported

Bulk file uploads are supported, but specific formats like CSV or Excel are not explicitly confirmed.
eFile with IRS, SSA & CFSF

Supported

Tax1099 supports e-filing with the IRS, SSA, and CFSF.

Unknown
Smart eFiling with AI

Supported

Tax1099 utilizes Zenwork AI Tax Assist to streamline tax reporting and e-filing.

Not supported

Avalara does not appear to use AI to enhance e-filing.
Corrected/Void Form eFiling

Supported

Tax1099 allows users to correct or void forms after e-filing.

Not supported

Avalara does not support correcting or voiding e-filed forms.
Sales tax filing

Not supported

Tax1099 does not support sales tax filing.

Supported

Avalara automates sales tax return preparation and filing across multiple states.

Qualities

Value and Pricing Transparency

+0.76

Strongly positive sentiment

-0.52

Rather negative sentiment
Customer Service

+0.1

Neutral sentiment

-0.08

Neutral sentiment
Ease of Use

+0.8

Strongly positive sentiment

+0.69

Rather positive sentiment
Reliability and Performance

+0.56

Rather positive sentiment

+0.38

Rather positive sentiment
Ease of Implementation

+0.41

Rather positive sentiment

+0.04

Neutral sentiment
Scalability

-0.25

Neutral sentiment

No data

Tax1099 and Avalara Pricing

Tax1099 offers a tiered subscription plan, alongside a pay-as-you-go option for filing IRS forms. The platform provides add-on services like TIN matching, mailing, and e-delivery.

Plans

User sentiment

Strongly positive

+0.76

See full Pricing page

Avalara's pricing is custom and depends on several factors, including the products and services purchased, the number of business applications integrated, the volume of sales transactions, and the number of states and jurisdictions where sales tax is collected. They offer set pricing for Avalara License Guidance for as low as $99 and Avalara Sales Tax Registration for $349 per location.

User sentiment

Rather negative

-0.52

See full Pricing page

Tax1099 and Avalara review insights

766 reviews analysed from and

Users love

User-friendly interface for creating and sending 1099s, especially for repeat clients.
Affordable pricing for small businesses, with options for per-form or volume-based payments.
Time-saving automation features like data import, e-filing, and direct mailing to recipients.
Helpful resources such as video tutorials and FAQs available on the platform.
Wide range of tax forms supported, including federal, state, and other IRS forms.

Accurate sales tax calculations, ensuring compliance with various jurisdictions
Automated sales tax filing, saving time and reducing manual effort
Exemption certificate management features (CertCapture) are highly praised
Comprehensive tax coverage for businesses of all sizes, including international transactions

Users dislike

Occasional software glitches and errors reported by some users.
Integration issues with QuickBooks Desktop, leading to data inaccuracies and extra work.
Customer support, while generally responsive, has been reported as slow or unhelpful in some cases.
Difficulty navigating the platform and finding specific features or past filings.
Lack of transparency on pricing for certain services like prior year submissions.

Slow and unhelpful customer support, often requiring multiple follow-ups for resolution
Unexpected price increases and billing issues, particularly with contract renewals
Difficulties with integration, especially with QuickBooks Online, leading to errors and slowdowns
Inaccurate data and erroneous API calls resulting in unexpected overage charges

Tax1099 and Avalara Ratings

G2

4.4/5

(11)
Capterra

4.6/5

(250)
TrustPilot

4.4/5

(20)

G2

4.0/5

(534)
TrustPilot

4.1/5

(81)

Company health

Employee growth

No data

Web traffic

No data

Financing

No data

How do Tax1099's 1099-NEC features compare to Avalara's sales tax features?

Tax1099 focuses on 1099-NEC forms (for non-employee compensation) and other IRS forms like W-2s, offering features such as form creation, e-filing, corrections, and integrations with accounting software. Avalara, on the other hand, specializes in sales tax compliance, automating calculations, filing, and remittance for various jurisdictions. Therefore, their features address different tax obligations, with Tax1099 handling non-employee compensation reporting and Avalara managing sales tax.

Which product better integrates with existing accounting software like QuickBooks?

Tax1099 has more potential issues with QuickBooks integration based on user reviews mentioning "integration issues with QuickBooks Desktop, leading to data inaccuracies and extra work." While Avalara also has some user-reported integration challenges with QuickBooks Online, the feedback for Tax1099 specifically mentions inaccuracies, suggesting a more problematic integration. Therefore, neither product has perfect QuickBooks integration, but Avalara seems marginally better in this regard.

What are the advantages of Tax1099?

Tax1099 focuses specifically on simplifying 1099 and W-2 filing, offering features like data validation, TIN matching, and integration with accounting software. Its pricing is transparent and includes a free tier, making it potentially more affordable for smaller businesses. User reviews highlight its user-friendly interface and time-saving automation features. While Avalara offers broader sales tax compliance solutions, Tax1099 provides a dedicated and potentially more cost-effective solution for businesses primarily concerned with 1099 and W-2 compliance.

What are the disadvantages of Tax1099?

Tax1099 suffers from occasional software glitches and integration issues, particularly with QuickBooks Desktop. Some users have reported difficulty navigating the platform and finding specific features. Customer support, while generally responsive, has been criticized as slow or unhelpful at times, and there's a lack of pricing transparency for some services.

Alternatives to Tax1099 and Avalara

Sovos

Sovos offers cloud-based tax compliance software for businesses of all sizes. They help companies navigate sales tax, VAT, and other regulatory requirements in over 70 countries. Their software integrates with existing business systems to automate tax calculations, reporting, and filing. Sovos focuses on providing accurate and reliable compliance solutions to reduce risk and free businesses to focus on growth.

Track1099

Track1099 is an IRS-approved online platform designed to simplify the process of filing 1099 tax forms for businesses of all sizes. It allows you to create, send, and e-file various 1099 forms, including corrections, to both recipients and the IRS. Track1099 offers secure e-delivery, state e-filing options, TIN matching, and integration with popular accounting software like QuickBooks and Xero. They offer a pay-per-form pricing model with no minimum fee, making it a cost-effective solution for managing 1099 compliance.

Vertex

Vertex provides cloud-based software that helps businesses manage their sales tax, VAT, and corporate tax obligations. It offers tools for tax calculation, compliance reporting, data management, and integrations with popular business applications. Focusing on automation and accuracy, Vertex aims to simplify tax processes, reduce audit risks, and free up internal resources for mid-sized and large companies, especially within industries with complex tax requirements like e-commerce and software.

LOVAT

LOVAT is a tax compliance software designed for businesses of all sizes. It simplifies sales tax and VAT filing by collecting sales data, calculating tax liabilities, and automating the filing process. LOVAT offers integrations with various sales channels, tax due reminders, and secure data storage. It also provides access to a team of tax experts for support.

Abound

Abound is a tax compliance software that helps businesses automate and streamline their 1099 tax form processes. It offers a modern solution for collecting W-9 information, verifying taxpayer IDs, generating and filing 1099s, and managing corrections. Its features aim to reduce errors, ensure accuracy in tax filings, and save businesses time and resources. Abound is designed to integrate seamlessly with existing platforms and provides a user-friendly dashboard for managing tax compliance.

Anrok

Anrok is a tax compliance software designed specifically for software as a service (SaaS) companies. It helps businesses track their sales tax liability in different regions, automatically calculate and collect sales tax, and ensures accurate filing and remittance. Anrok integrates with popular billing and financial systems to provide a centralized platform for managing sales tax, offering peace of mind to finance teams and helping SaaS companies scale globally without tax headaches.

Page co-authored by

Michal Kaczor

CEO at Gralio

Michal has worked at startups for many years and writes about topics relating to software selection and IT management. As a former consultant for Bain, a business advisory company, he also knows how to understand needs of any business and find solutions to its problems.

Tymon Terlikiewicz

CTO at Gralio

Tymon is a seasoned CTO who loves finding the perfect tools for any task. He recently headed up the tech department at Batmaid, a well-known Swiss company, where he managed about 60 software purchases, including CX, HR, Payroll, Marketing automation and various developer tools.

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