Amazing QuickBooks Add-on: MagTax, e-file 1099 and Extensions

Filed in Intuit QuickBooks by on February 1, 2012

Miraculous MagTax is the newest of my Amazing QuickBooks Add-ons. This Amazing QuickBooks Add-on is the fastest and easiest way to e-File 1099 forms. These are the applicable 1099 due dates:

    Give to recipients – January 31, and

    File with Internal Revenue – February 28, or

    E-File with Internal Revenue – March 31

Not meeting these deadlines can result in $500 of penalties PER FORM, plus the disallowance of deductions for the related expense. However, I am not writing this because you must e-File 1099 forms if you have more than 250 of them. I am writing because of the automation and extensions that MagTax gives you to file 1099 forms. I also writing about this amazing QuickBooks add-on because of the amazing MagTax programmers.

Many programs e-File 1099s. However, you should only consider those that import data from QuickBooks. Importing QuickBooks created CSV files wastes time. You only get a few programs when searching for e-File 1099 “QuickBooks import.” W-2 Mate starts out at $39, but is $324 with laser forms, networking and a QuickBooks import. MAG-FILER is $354 with IRS TIN Matching.

MagTax is one of three programs with a 4.75 star CPA Practice Advisor rating for Year-end Reporting. AccountantsWorld – After-the-Fact Payroll does not unoirts QuickBooks files EG Systems, Inc. – The W-2/1099 Filer looks like a good competitor for $184 ($154 renewal) for comparable features. Only it has recipients not tied to one EIN, so you use them across multiple companies. This saves time for separate businesses with common contractors. It also has a reverse cross-reference view by recipient.

The comparable MagTax is $299, with a $159 renewal ($149 through August 31, for next year). However, the amazing MagTax programmers and customer service make it miraculous. I recently discovered that no program could file extensions for giving forms to recipients or filing them with Internal Revenue. What was far more disturbing was that requests for extensions for recipients had to be in a letter, while request for extensions for Internal Revenue went in a separate form. There also was no mention of requesting many extensions in one letter and you MUST send requests for more than 10 payers electronically!

This meant using the Internal Revenue HIRES electronic system, which closely resembles Frankenstein in speed and usability. You start with a 16-digit account number, but only use the right 8 digits. The many steps in its signup make you wait on the mail and use different web pages and phone numbers at different times. Password rules are a nightmare, especially since you must change them often and cannot use them again. My HIRES login expired ago. I would sooner quit public accounting than activate it again. All this, of course, is before you start wasting time on posting anything with HIRES.

I emailed MagTax support on this during the late afternoon of January 30, 2012. At 4:44 PM that day, a MagTax reply said they would add extensions that night. At 5:04 PM I wrote, “Added tonight? I will nominate anyone, who can change a program like MagTax tonight, to mediate the Arab – Israel dispute. I am sure that you will have no trouble parting the Red Sea (again).” Despite my doubts, in less than 12 hours (at 4:43 AM), an email confirmed that MagTax did this. I quickly used it for about 25 clients. It seems to work fine.

Based on my MagTax emails, I have no doubt that the MagTax Amazing QuickBooks Add-on will be even faster, easier and much more powerful next year.


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Fastest, easiest, accurate, low-cost QuickBooks! Intuit - QuickBooks CEO, "You're fantastic Mike! Absolutely fantastic!" Tax fighting CPA.

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