Taxation FAQs
How are payee tax forms collected?
With the Taxation module enabled, Tipalti collects tax forms and other required compliance documents from payees via the iFrame or Supplier Hub.
How can we ensure that payees have access to the relevant tax forms for our operating units?
You can set the tax form collection ability per operating unit (i.e., entity). The appropriate entity can then be assigned to payees so that they can access the relevant tax form from within the iFrame/ Supplier Hub. Please submit a request to our Support Team for assistance in assigning tax forms to entities.
What if a payee does not know which tax form to complete?
For US tax forms, Tipalti provides payees a tax form questionnaire in the iFrame/ Supplier Hub to help determine the required form. Click here to view the tax form questionnaire.
Most forms can be completed via Tipalti's online wizard, but some forms need to be completed manually. Click here for further information on electronic and manual tax forms.
How do I know if a payee has completed the required tax form?
Tipalti assigns tax form and document statuses in the Tipalti Hub so that you can track progression. These statuses display on the TAX INFO row on the "Payees" tab (see Find payee tax information). Click here for descriptions of tax form and document statuses.
Which US tax forms are available to payees?
When is the Certificate of No U.S. Activities applicable?
It is only applicable when "Other Income (Services)" has been selected as the income type on a tax form. Refer to Certificate of No U.S. Activities, which describes the differences in withholding rates when the certificate is signed and when it is not signed for electronic and manual tax forms.
How long are US tax forms valid?
The following tax forms are valid for the year signed plus three following calendar years. After this time, the forms expire automatically and payees are notified via email.
- W-8BEN
- W-8BEN-E
- W-8ECI
- W-8EXP
The 8233 form expires annually from the date signed and the W-8IMY and W-9 forms have no expiration.
Are payees required to provide additional documents when submitting tax forms?
Depending on the type of US tax form and information entered by the payee, the payee may be required to provide additional documents for verification and/ or an explanation as to why certain information was entered. For further details, click here.
What other compliance information may be required by payees when filling in tax forms?
Payees claiming treaty benefits on the W-8BEN-E form may need to satisfy the Limitation on Benefits article of that treaty.
Does Tipalti collect tax and VAT numbers?
Yes. Payees can enter this information in the iFrame/ Supplier Hub during onboarding. Tipalti validates these numbers before any payments are issued. For further information, including a list of the countries supported for local tax and VAT ID collection, click here.
1099 processing FAQs
General issues
Does Tipalti file my company’s 1099 forms with the IRS?
Tipalti does not file 1099 forms directly. Instead, the platform provides a ‘1099 preparation report’ containing all the information needed to complete your 1099 filings. You can then file with any third-party provider of your choice.
Tipalti integrates with Tax1099 (powered by Zenwork) for electronic filing, but you are not limited to using this service.
Where do I get the official 1099 forms for my payees?
Tipalti provides a ‘1099 preparation report’ data export (in CSV format). To create official IRS 1099 forms, you must use a filing provider (such as our integrated partner Tax1099). These forms cannot be generated or accessed directly in Tipalti.
Can payees access their finalized 1099 forms in the Tipalti Hub?
No. Finalized 1099 forms filed via Tax1099 are not synced back to Tipalti. Suppliers do not have access to their filed forms within Tipalti.
1099 preparation report issues
To learn more about 1099 preparation reports, go to Tax reports.
My 1099 amounts appear to be incorrect or incomplete. What could be causing this?
Common causes include:
- 1099s are reported on a calendar year basis. Only payments made during the tax year will be included in the calculation. Payments scheduled in December but processed in January, for example, will appear on the following year’s 1099.
- Payments made before a supplier’s W-9 is validated are excluded from the report. To ensure all reportable payments are included, collect and validate W-9 forms before making payments.
- Filters selected when downloading the 1099 preparation report:
- Payees with no payments during the tax year will only be included if you select ‘show payees with no payments’.
- To view all transactions, including card network transactions, select ‘all transactions’ when downloading the report.
- Incorrect mapping of GL accounts to 1099-MISC boxes
- Payments made outside of Tipalti
- It's recommended to review these factors and compare them with your own records.
Why do some payees with an address outside the US appear in my 1099 preparation report?
Payees are included in the 1099 preparation report if they have submitted a W-9 form or have been marked as having manually submitted a tax form.
Why did my 1099 report for a prior year change after I’d already filed?
The 1099 preparation report will always reflect the details from the payee’s W-9 that was in effect during payment. However, some rare changes, like cancelled checks, will be reflected retroactively, even for closed years.
Payee & payment categorization
How do I designate a vendor as ‘1099 eligible’? Is there a checkbox or flag?
There is no native vendor-level ‘1099 eligible’ flag. Payers often create custom fields (e.g., Yes/No) to track eligibility, but these must be maintained internally—there's no direct link to reporting logic.
How can I flag specific vendors (such as lawyers) to ensure 1099 issuance regardless of their entity type?
Some vendor types are subject to IRS 1099 reporting rules regardless of their entity type. Tipalti does not automatically override entity-type exemptions for these cases. However, you can use custom fields to flag these vendors in your records, and then ensure they are included in your 1099 reporting through manual review or adjustments to your reporting process.
Is it possible to categorize 1099 payments by type, such as rent vs. services, within Tipalti?
You can use Tipalti’s GL account mapping feature to help track and manage different payment types during your AP workflow. GL accounts can be mapped to 1099 box types via CSV file or API, enabling you to organize payment data by type before it is exported. Any payments coded to GL accounts that are not mapped to a 1099 category will be excluded from your final 1099 totals, while mapped accounts will appear on the export.
Why is a payee missing from my report?
Payees with no payments during the tax year will only be included if you select the ‘Show payees with no payments' checkbox when generating the report in the Tipalti Hub.
What should I do when Tipalti’s report is missing payments that must be reported?
The report does not include payments made outside the system. If you have such payments, download the 1099 preparation report, reconcile missing transactions manually, and add them when filing via Tax1099 or other services.
GL account mapping & exclusions
How do I map my company’s GL accounts to the correct 1099 boxes?
Mapping is done via CSV file import or API. You should navigate to Administration > File integration > Import settings, and make sure the Import mode for GL accounts is set to Difference and not Override. To learn more, go to GL accounts.
What happens if a GL account is not mapped to a 1099 box?
Payments to unmapped GL accounts will appear in the ‘Payments not mapped to any 1099 box’ column and are excluded from final 1099 totals unless remapped.
How do I exclude reimbursements or non-taxable payments from the 1099 totals
Exclusion must be done through GL account mapping; payments coded to ‘non-applicable’ accounts are excluded from reportable totals.