The 
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"Certainty?" In this world nothing is certain but being able to finish this famous Benjamin Franklin quote. If someone offered you a nickel for every time you were lectured on "death and taxes," you would be a millionaire. (On the flip side, that would mean more to claim on your taxes.)

Of course, Franklin was on to something. Tax evasion is a federal crime, punishable by up to five years in prison along with a hefty fine.

While this may be bad news for singer Lauryn Hill, who recently pleaded guilty to tax evasion charges, it's good news for distributors. Because taxes are a permanent fixture in our country, tax form sales are a guaranteed way to continue upping profits. To put things into perspective, the Internal Revenue Service (IRS) released the following data for fiscal year 2010:

• Number of returns for individual income tax: 141,166,805

• Number of returns for corporation income tax: 2,355,803

• Number of returns for employment taxes: 29,787,494

• Number of returns for excise taxes: 836,793

• Number of returns for gift tax: 230,007

• Number of returns for estate tax: 28,780

Still, many distributors believe tax forms are difficult to sell. James Magdaleno, product manager of TFP Data Systems, Oxnard, Calif., disagrees. Partnering with an experienced supplier can eliminate unnecessary headaches.

With 45 years of experience, TFP's initial focus centered around government-approved forms and compliance products—tax forms were a natural fit. This level of knowledge puts TFP in a position to be a go-to resource for distributors.

"Distributors often ask us, 'What support can you provide to help me service my customers and increase sales?" Magdaleno remarked. "We provide free marketing tools to our dealers to support sales efforts, including catalog imprints, as well as customizable e-mails and flyers."

TFP also supplies targeted training, which can take sales "from satisfactory to superior."

"We offer in-person or webinar training for support staff. And we have printed sales and customer service kits that address common questions and provide clarity," Magdaleno added.

Grand Rapids, Michigan-based Broker Forms has been in the W-2/1099 business for more than 30 years. During the last five years, the company has concentrated on being a top provider of W-2/1099 reporting.

"The primary question customers ask is what changed from the prior year and if there is reprogramming required for any of the forms," noted Jason Jenison, account manager. "Broker Forms provides a summary document with these changes each year. In addition, we provide information on the key questions to ask customers in order to determine exactly what type of forms are necessary for each client."

Teresa Budzynski, account manager for Broker Forms, brought up another point. "A common misconception is mixing up W-2/1099 reporting with products related to Income Tax reporting. While they are linked, they are two separate types of products," she cautioned. "The challenge for distributors is asking the right questions so businesses know what services they are looking to provide."

So, what changes are on the horizons for W-2 and 1099 forms this year? Nothing too significant.

"There are a handful of changes in which reprogramming will be required, but nothing that will alter the landscape of tax forms for 2012," Jenison commented.

He went on to discuss the problems surrounding the 1099-K form that was introduced last year.

"The 1099-K form was new last year and there was a lot of confusion. Broker Forms does carry the form; however, most people who inquire about it do not actually need it as it is targeted toward payment processors such as credit card companies," Jenison explained.

Distributors shouldn't worry too much about complicated tax codes. That type of information is reserved for accountants or tax professionals. There are other ways sales representatives can simplify the buying process for customers. For example, TFP's TaxForm Wizard (www.taxformwizard.com) is an easy way to determine which form is needed. Magdaleno said this tool is particularly popular with customer service representatives.

"If customers don't know which form they need, the reps can go to the site, answer a few simple questions and the correct form will be generated. The reps can even send customers to the site directly because TaxForm Wizard is a non-branded, non-selling site," he stated.

Both companies are keeping things new and fresh by helping distributors bridge the gap between 1099 and W-2 paper forms and technology. According to Budzynski, most payroll and business software contains year-end W-2/1099 reporting functionality. As a result, the need for a separate application has been reduced over the years.

"However, for those businesses [that] have a need outside the norm (such as less common 1099 reporting needs), as well as micro businesses with no W-2/1099 reporting within their software, Broker Forms offers both a SAAS product, www.ez1099w2.com, as well as a desktop product in Winfiler," she mentioned.

The technology behind the two products is similar, but Winfiler is the more robust, and costly, option. Similar to most desktop software, it requires an upfront purchase, with various additional services available within the software, Budzynski noted. Meanwhile, www.ez1099w2.com, allows everything to be done over the Web and doesn't require an upfront purchase. Instead, it charges per form filed.

TFP's core business is paper-based forms, but the company has invested in e-file and service bureau technologies to meet customer demands. Distributors can add the online filing tool, www.efileforbusiness.com, to their websites. Magdaleno explained how it works.

"We'll give you a free customized filing website. You set up a link on your site to the site we provide. And you make money with every filing. It's a great way to generate revenue with virtually no effort," he said.

In regard to software, TFP offers two proprietary solutions: TaxRight and Laser Link. These are used for preprinted forms and blank forms. "They will merge from existing programs each year and both include free e-file. Each title has video demos and step-by-step instructions to guide users," Magdaleno noted. "We also offer comprehensive phone support, although most users never need to call because the software is so easy to use."

While Magdaleno acknowledged the IRS's projection that suggests the percentage of people who e-file their taxes will increase by a little more than 1 percent each year, he remains a champion for the paper cause. Some trends Magdaleno has observed include: an increasing demand for pressure seal due to convenience and security; an ongoing move from continuous forms to laser printed forms; and a growth in blank forms sales with backers and perforations. He did admit that there is a growth in e-filing and a rapid decline in mailers due to a higher price of product.

"It is possible that some day, paper forms will go away completely. But until that day arrives, there is still money to be made in tax forms. The challenge is keeping that a secret from the other dealers," Magdaleno commented.

Jenison said there are regulations in place at the federal and state levels which make it difficult for technology to replace all paper-based tax forms; however, he believes technology is a challenge forms distributors will continue to face as regulations ease and customer preferences evolve.

"The area that can push the most significant change is regulation by these agencies. If there are significant changes, distributors can expect to see major shifts in the market; however, if there are not major changes, I believe the current trend of steady electronic filing adoption will continue with paper forms [still] being in high demand," Jenison surmised.

Until then, keep selling and go for repeat orders. "Tax forms are one of the very few products every business needs," Magdaleno reminded distributors. "If you're not selling tax forms to them, someone else probably is."