Whitepaper: Avalara 1099 Readiness Report

Avalara, Inc., the agentic tax and compliance leader, today released the 2025 Avalara 1099 Readiness Report, an in-depth study outlining the key challenges accounts payable (AP) teams face heading into the 1099 season. Based on a survey of 1,000 AP professionals across the United States, the findings show that outdated workflows, increasing IRS requirements, and heightened audit scrutiny are putting mounting pressure on finance teams.

The report reveals that only 24% of businesses have fully automated tax compliance, while 22% still rely on partial or entirely manual processes. As a result, many AP teams remain burdened by spreadsheets and manual data entry at a time when speed, accuracy, and governance are critical. Despite these gaps, momentum for modernization is growing, with 78% of teams planning to invest in compliance technology within the next year.