Generated vs. Filed Tax Forms: What Recipient Copies Can and Can't Do

A W-2 or 1099 has two jobs. It gives the worker or payee their copy (furnishing), and it reports the same numbers to the government (filing). A generator like ours can do the first job well. The second job runs only through channels the IRS and SSA control. Knowing exactly where that line sits avoids penalties and confusion in January.

The copies and where they go

Form	Copy	Goes to	What PayStubShop provides
W-2	A, with Form W-3	Social Security Administration	Not provided; you file it
W-2	1	State, city or local tax department, if required	Not provided; follow your state's filing method
W-2	B, C, 2	Employee	Yes
W-2	Employer copy	Your records	Yes
1099-NEC / 1099-MISC	A, with Form 1096 if on paper	IRS	Not provided; you file it
1099-NEC / 1099-MISC	B (and state copies)	Recipient	Yes
1099-NEC / 1099-MISC	Payer copy	Your records	Yes

Why Copy A is different

Copy A is read by machine. The IRS prints it in red drop-out ink, on scannable stock, with typed entries in specific places. Two official warnings sum up the rule:

• On Form W-2: Copy A downloaded from IRS.gov "is provided for informational purposes only." It doesn't meet the SSA's requirements for scanning, and filing it can bring a penalty. The SSA accepts only e-filed reports and the official red-ink versions or approved substitutes.
• On Form 1099-NEC: self-printed copies of Copy A aren't scannable, and the IRS may impose a penalty for filing information returns it can't scan.

Black-ink copies (B, C, 2 and so on) are different. The IRS says they may be downloaded, completed, printed and used to furnish recipients. Privately designed substitutes must follow the IRS specifications: Pub. 1141 for W-2s and Pub. 1179 for 1099s. Pub. 1141 also bans advertising on any copy of a W-2.

How filing actually works for 2026 forms

	W-2	1099-NEC	1099-MISC
File with	SSA	IRS	IRS
Electronic channel	SSA Business Services Online: free, generates Form W-3	IRIS portal	IRIS portal
Paper channel	Official red-ink Copy A plus W-3	Official Copy A plus Form 1096	Official Copy A plus Form 1096
Due	February 1, 2027	February 1, 2027	March 1, 2027 on paper; March 31, 2027 electronically
Furnish to recipient by	February 1, 2027	February 1, 2027	February 1, 2027; February 16, 2027 if box 8 or 10 is used

The 10-return rule. If you file 10 or more information returns during the year, counting W-2s, 1099s and other information returns together, you must e-file all of them. Five W-2s and five 1099-NECs make ten.

FIRE is closing. The IRS says that starting with tax year 2026 and the 2027 filing season, IRIS is the only intake system for information returns. FIRE won't accept submissions after it shuts down at the end of 2026, and that includes current-year, prior-year and correction filings.

Penalties for getting it wrong

For information returns due after December 31, 2026, the penalty per return depends on how late the correct filing is:

When the correct return is filed	Penalty per return
Within 30 days after the due date	$60
After 30 days, by August 1	$130
After August 1, or never	$340
Intentional disregard	At least $690, no maximum

Filing on paper when you were required to e-file, filing returns that can't be machine-read, and furnishing incorrect payee statements can all trigger penalties. Failing to furnish a correct payee statement carries its own penalty, at the same amounts. There's also civil liability for willfully filing a fraudulent W-2 for payments you claim you made to another person: that person may sue, and damages can be $5,000 or more, along with possible criminal sanctions.

Furnishing electronically

You can email or post W-2s and 1099s instead of mailing them only if the recipient has affirmatively consented before the statement is furnished. You must also explain:

• that they'll receive paper if they don't consent;
• the scope and duration of the consent;
• how to get a paper copy, and how to withdraw consent; and
• any hardware or software needed to open the statement.

Without consent, mail or hand-deliver paper copies.

Where PayStubShop fits

We prepare the recipient and employer copies, quickly and with the math checked: W-2s at $14.99 per employee, 1099-NECs at $9.99 and 1099-MISCs at $12.99 per recipient. You can batch recipients and mix forms in one checkout. Use them to furnish your workers and payees and to keep your records, then file Copy A through SSA Business Services Online, IRIS, or official scannable paper. If a recipient copy you bought from us has a typo, corrections are free for 30 days. Once a form has been filed with the SSA or IRS, the fix is a corrected filing (W-2c, or a corrected 1099) through the same channel.