On October 1, 2021, Avalara, a leading provider of tax compliance automation software for businesses of all sizes, announced it has acquired Track1099 LLC, a company that provides online software and services for cost-effectively managing, e-filing, and e-delivering IRS forms, including 1099s, W-2s, W-9s, and more. Wilson Sonsini Goodrich & Rosati represented Track1099 in the transaction.
Every year, businesses must file information and withholding forms to report employee and contractor income to the IRS. There were an estimated 3.5 billion of these forms filed in 2020. Moving forward, more companies will be required to e-file when the IRS reduces the e-filing threshold from 250 to 100 forms for each business. Track1099 supported more than 40,000 customers with their filing needs in tax year 2020. To best serve the needs of its customers, Track1099 provides 1099 filing on a cost-effective, tiered, per-form pricing basis and an annual subscription for W-9s.
The financial terms of the deal were not disclosed. Avalara acquired the assets of Track1099, adding technology, content, and expertise to its platform and team.
The Wilson Sonsini team that represented Track1099 in the transaction includes:
Corporate
Barry Taylor
Melissa Hollatz
Delaware Corporate
Adrian Broderick
Sara Pollock
Employment and Benefits
Michelle Wallin
Briza Sanchez
Technology Transactions
Barath Chari
Privacy and Cybersecurity
Matt Staples
Daniel Chen
Trade Secret Litigation
Charles Tait Graves
For more information, please see Avalara's press release.