The burden of a company who files 15 returns of information compared to accounting firms that file 1500 information returns is drastically different. Tax software prices don’t always reflect this difference.
Another aspect to consider in that information-return filing is seasonal for a lot of organizations. For example small-scale businesses might make use of its software intensively during a limited time period but barely use it throughout the year.
It poses the question about how to purchase. Should an organization be paying for access to its software on a continuous basis or should the price of software be based on the amount it actually saves,
TaxFormHero takes the second approach, using per-form pricing rather than signup fees, subscriptions, or seat licenses.
Start With Your Real File Volume
Comparing a platform solely on its advertised prices can be misleading. A more accurate comparison starts with the expected amount of returns and the types of services you actually require.
TaxFormHero costs $1.99 for each form. The cost per form decreases as the volume rises until it reaches $0.45 after 1,000 forms. For organizations filing large volumes the possibility of customizing rates is discussed.
For those who file only on occasion who only files occasionally, the absence of a ongoing subscription means there’s no reason to cancel it after the filing season. Seat licenses are not needed for the CPA who manages multiple clients.
Optional Services Should Actually Be Optional
Each client may not require the same services.
A company may be comfortable with its current process of downloading recipient copies, and then dispersing them. A business might prefer having the firm that handles filing services be responsible for delivery.
With TaxFormHero’s 1099 e-filing platform Recipient copies can be downloaded free. Electronic delivery of recipients and print-and-mail options are available as pay add-ons. The optional services include TIN verification.
The modular method allows companies to differentiate between the expense of filing, as well as the expenses of additional services, instead of being forced to pay for features they may not require.
Scale Creates an Organizational Problem, Too.
Filing volume isn’t just about price.
A professional accountant managing multiple businesses should keep track of their EINs in a manner that is easy and does not need a collection of non-related EINs. TaxFormHero lets multiple payers to be managed through one login and supports bulk imports with Excel or CSV.
The method that combines 1099 filing with W-9 collection could allow for an improvement in the administrative burden while still maintaining a clear distinction between the payer’s records. For those who handle a large number of returns, importing information according to logical order can be more convenient than entering individual forms.
Cost discussion should include compliance and security
The cheapest option for filing isn’t always cost-effective if it requires additional administrative tasks or if it doesn’t have the capabilities organizations require.
TaxFormHero has been approved by the IRS to provide electronic filing for W-2s, 1099s and other informational returns. The company says it employs 256-bit encryption both in the rest of the process and during the transfer process, and it also provides two-factor verification. It has announced that it will complete an independent SOC 2 Type I audit that focuses on the Security trust services criteria in the month of October 2025.
The business should look at the security and operational aspects along with the cost per return.
Purchase the Filing System You Actually Have
Software economics should not be identical for small-scale businesses accounting firms, small and large businesses.
Calculations that are more precise include the filing volume, the number of payer entities and their workload as well as the recipient delivery requirements.
To handle compliance tasks that are seasonal, software doesn’t necessarily need to be an ongoing monthly expense. Pay-per-form permits costs to change with the volume of paperwork completed, which makes budgeting much simpler.