The amount of work required by a business filing 15 information returns compared to accounting firms that file 1500 information returns is drastically different. Yet tax software pricing doesn’t always reflect that difference.
Another issue one more: information return filing is seasonal for many organizations. For example small businesses may make use of its software extensively during a specific time duration, but it is not used throughout the year.
This raises a real-world purchasing issue. Should a company pay for access to software on a continuous basis or according to the actual quantity of files it produces?
TaxFormHero employs the second method and charges per form instead of requiring signup costs or subscriptions.
You should start with the volume of your real filing
It is misleading to compare filing platforms solely on the advertised price. A better comparison begins with the expected amount of returns as well as the services you actually need.
TaxFormHero’s published pricing starts at $1.99 per form. The cost per application decreases with the increase in volume until it reaches $0.45 after 1,000 forms. Custom rates are also available for firms that submit large volumes of documents.
If you’re a regular filing, there isn’t a subscription to cancel at the end of filing season. For an CPA with multiple clients there are no seat licenses to purchase because more staff members must be involved in the workflow.
Optional services must be made available for an optional
Each filer may require different services.
An organization may be satisfied with its current process of downloading recipient copies, and then dispersing copies to them. Others may prefer the file provider to manage the distribution.
TaxFormHero offers a free copy download for recipients. Electronic delivery of recipients and print-and-mail services are offered as paid options. The verification of TINs is an extra service.
This modular approach permits companies to decouple the cost of filing services from the costs to pay for additional services rather than automatically paying features they may not use.
The size of the issue is also a challenge for companies
Price isn’t the only consideration when filing volumes increase.
An accountant working with numerous companies must keep distinct EINs well-organized without having an inconvenient collection of unrelated accounts. TaxFormHero allows multiple payer entities under a single login, and bulk imports via Excel or CSV.
A more comprehensive 1099 filing and W-9 collection solutions should help reduce administration tasks that are repetitive, while maintaining a clear separation between payer records. For those who manage a lot of returns, importing data organized can be a lot more practical than completing forms in isolation.
Costs for Compliance and Security Included in Cost Discussion
The cheapest method of filing might not be the most economical if it involves additional administrative work, or lacks the capabilities that organizations require.
IRS-authorized TaxFormHero supports electronic filing for 1099s, W-2s and other information returns. The company states that its platform utilizes an encryption of 256 bits for data in transit. It also provides two-factor authentication. The company reports that it will carry out an independent audit of SOC2 Type II in October 2025, based on the Security Trust Services requirement.
The business should look at the security and operational aspects together with the return price.
Buy to Use the Filing Machine You Have
Small-scale businesses or accounting firm as well as a multi-entity enterprises shouldn’t be pushed to use the same software.
Calculations that are more accurate are based on quantity of paperwork filed, the amount of payer entities and their workload and delivery requirements.
For seasonal compliance work, software doesn’t necessarily need to be an ongoing cost each month. Pay-perform allows the cost to fluctuate with the amount of filing done and makes budgeting easier.
