ETAX1099BLOG

Need to Know about IRS Combined Federal/State (CF/SF) 1099 Filing

There are a few number of selected states that allows the IRS to transmit the 1099 information automatically to them once it is been filed. This service is available only with the electronic filing method. Electronic filing is not simple as emailing to the IRS, it requires the certain process to be completed. Initially, you need to apply and become approved by the IRS to submit the forms to the FIRE system. Who can do combined federal...

The Independent Contractors Pros and Cons

There are numerous benefits while you hire the independent contractors ( ICs), but also there are few drawbacks too. Hence, before hiring an independent contractor you need to assess both the pros and cons so that you get a clear understanding before taking a better decision. Pros of Hiring Independent Contractors  There are many advantages of using independent contractors when compared to normal employees. Save More Money Though most of the employers pay their Independent Contractors per...

Penalties for Not Filing 1099 Forms Before Due Date

The Penalty amount depends based on when you filed the information return or when you furnished the correct payee statement. The penalty for not filing 1099 forms, correct information is separate from the penalty for not providing the proper payee statement. The penalty rates differ based on the condition. Penalty Rates The following table reflects the penalty rates and the maximums for not providing the correct information and/or not furnishing appropriate statements of the payee. This also...

IRS Offers 8 Tips for Teenage Taxpayers with Summer Jobs

It is summer time and the teenagers are busy with their summer jobs to fill their pockets. Students prefer the part time summer jobs for multiple reasons, either to earn extra money for the family or to save them for later use. The reasons may be different but the ultimate goal is to earn extra money in their free time. In that regard, the Internal Revenue Service also takes a part to help them to some extent...

Trump’s New Tax Plan and Tax Cuttings in 2017 – How it Effects You

President Donald Trump’s campaign tax proposal has got some additional details with Treasury Secretary Steven Mnuchin and National Economic Council Director Gary updates in April 2017 which is listed below.  Recently updated tax proposal eliminates all the itemized and regular deductions (like home office deductions, state and local) which are the part of current tax code excluding the mortgage interest and charitable deductions. The standard deduction will be twice to the offset the elimination of any other...

Must Know this Tax Preparation Checklist for Filing Your 1099 Taxes 2016

Prior to beginning with the procedure of preparing income tax return, it is necessary for you to go through the tax preparation checklist. There are different categories in the 1099 tax preparation checklist and not all the categories will strictly apply to you. Therefore, what you need to do is select the category that applies to you and ensures that you have all the necessary information available. Once you are completely ready to efile 1099 online with...

Understanding about 1099-K Tax Form Reporting Requirements

1099 K form is basically an IRS information return which is used for reporting some payment transactions for improving voluntary tax compliance. IRS 1099 K needs to be received by 31st January in the prior calendar year of receiving payments: From payment card transactions like credit, debit or store-valued cards.  In the settlement of third-party payment network transactions more than minimum reporting thresholds of gross payments exceeding $20,000 and above 200 transactions. Form 1099 Reporting Requirements The...

7 Facts Should Know about IRS Late Filing and Late Payments Penalties

The annual deadline for the people to file their federal income tax return is 15th April. This is also the deadline for people to pay any taxes that they might owe. As per law, there is an IRS late filing penalty that the IRS can assess to the taxpayers. This means that the penalty is also assessed on the taxpayers who fail to pay the taxes that they owe within remaining deadline. These penalties levied by the...

1099-INT Form Instructions for 2016-Efile 1099-INT Tax Form

1099 forms are a type of tax documents which are used for reporting certain kinds of payments which are made by financial institutions. These forms are used in U.S.A for preparing and filing information returns for reporting various sources of income other than salaries, wages, and tips. They can be filed through two ways mainly. Firstly, they are sent manually. Secondly, they are sent electronically through Filing Information Returns Electronically System (FIRE). These series of documents are...

Effective Tips to Reduce Self-Employment and Freelance Taxes

No one likes to hand over their hard-earned money in taxes. The following tips will help you in saving money if you are self-employed or work on a freelance basis.   What is Self-Employment? If you have a business of your own, then you will fall in the category of self-employed people. Maintaining a business is not easy as you need to keep a watchful eye on different kinds of paperwork. But when it comes to tax...