The burden of a company who files 15 returns of information compared to accounting firms that file 1500 returns is a vastly different. However, the pricing of tax software doesn’t always reflect that difference.
There is another wrinkle that is: filing information returns is seasonal for most organizations. A small business may employ its software for filing intensively for a brief time, and only rarely use it for the rest of the year.
This brings up a pertinent purchasing issue. Should companies pay for software access continuously or in accordance with the actual amount of files it makes?
TaxFormHero takes the second approach, using per-form pricing rather than signup fees, subscriptions, or seat licenses.
Start with Your Real Filing Volume
The comparison of filing systems based only on their advertised starting price is often misleading. Consider the amount of returns you’re expected to file and the kind of service you require.
TaxFormHero costs $1.99 per form. Gradually, the cost per form is reduced as you increase the volume of your forms. If you have a large volume of documents to file the possibility of customizing rates is discussed.
If you are an occasional filer, there’s no option to cancel your subscription at the close of filing season. If an CPA manages several clients, he or she does not need to buy separate seat licenses as more staff is required to aid in the process.
Optional services must be optional
Not all clients require the same type of service.
An organization may be satisfied using its current system of downloading copies to recipients and then distributing copies. Some businesses may prefer the firm that handles filing services take care of distribution.
TaxFormHero 1099 eFiling software allows you to download copies for recipients for no cost. In addition to the paid-for services, you can add the delivery of electronic recipients, as well as print-and-mail. The TIN verification service is a different service.
This modular approach permits companies to decouple the cost of filing services and the charges for additional services, instead of charging for features that they might not use.
Organizational problems arise from scale
The price isn’t all that important when filing volumes increase.
Accounting software can assist accountants who work with multiple businesses to manage their EINs without a huge list of accounts. TaxFormHero allows you to manage multiple payer entities from only one login. It also supports bulk imports with 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 tax returns, importing structured data could be much more effective than filling out the forms one-by-one.
Compliance and Security are part of the Cost Discussion
The cheapest method of filing isn’t always the most efficient if it is requiring additional administration or the capabilities an organization requires.
TaxFormHero has been approved by the IRS to provide electronic filing for W-2s, 1099s and other informational returns. The firm claims its platform offers two-factor authentication and employs encryption of 256 bits for data both in transit and at rest. The company claims that it will conduct an independent audit of SOC2 Type II in the month of October 2025 to meet the Security Trust Services requirements.
These security and operational concerns need to be weighed against the cost per return.
Purchase the Filing System You Actually Have
A small business or accounting firm as well as a multi-entity enterprise shouldn’t be forced into identical software economics.
The most efficient takes into account the volume of filings and the number of entities that pay and the workload of processing data, the need for delivery of information to recipients, verification requirements, and security requirements.
For compliance work that is seasonal Software doesn’t need to be an ongoing monthly expense. The expense of a pay per form structure could fluctuate along with the amount submitted, making budgeting more efficient.