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Etax1099.com is the IRS authorized efile provider for 1099 tax forms. It comes from a series of tax e-file services provided by yakshna solutions inc, which is a leading provider in the tax industry. There are customized packages available for tax professionals as well as individual filers to report their form 1099's with ease. It provides bulk filing features and customer support over phone, chat and email.

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IRS Tools to Help Small Businesses: Understand Employment Taxes

Posted by Admin on 12. September 2017 08:57

The Internal Revenue Service provides many free tools for the small businesses in order to help them understand and comply with the law. The IRS product includes printable calendars, online calculator, step-by-step guides and a series of educational webinars which are readily available on the website of the IRS.

 

The federal law obliges the employees in the United States to withhold the federal taxes from the wages of their employees. The IRS tools help all the small businesses to understand the requirements for reporting, withholding and paying employment taxes. The IRS offers easily accessible information and specifies the employers on what forms to be used. In addition, it guides how and when to deposit and report the employment taxes.

IRS Tools to Help for Small Businesses

Discussing below, few of the IRS tools that help small businesses to understand the employment taxes.

Federal Income Tax:

Initially, the small businesses want to figure out how much tax they need to withhold. In order to understand the process the employers of the small businesses by starting with the Form W-4 of an employee and the withholding tables, this is described in the Publication 15, Employer’s Tax Guide.

Social Security and Medicare Taxes:

This tax, Social Security, and Medicare Taxes is one of the taxes that are withheld by most of the employees from the wages of their employees in the country. This, in turn, is deposited with the matching share of the employer. The employers are responsible for withholding the Additional Medicare Tax on wages from the year 2013 that exceeds a threshold amount. The Additional Medicare Tax is not matched with any employer, certain type of compensation and wages does not come under this category, and they are not subject to withholding.

Federal Unemployment Taxes (FUTA):

Usually, the employers need to report and pay the Federal Unemployment Tax separately apart from the other taxes. The employee need not pay this FUTA tax or withheld from their pay. Every business pays Federal Unemployment taxes from their own funds.

Depositing Unemployment Taxes:

Employers are required to pay their employment taxes by making the deposits to the federal tax through the Electronic Federal Tax Payment System (EFTPS). The tax amount, which is withheld for a period of one year, can determine when to make the deposits. The IRS tools such as Publication 3151-A, The ABCs of FTDs: Resource Guide for Understanding Federal Tax Deposits and the IRS Tax Calendar for Businesses and Self-Employed

When the deposit delays or failure to do so will subject to a failure of deposit and it attracts a penalty of up to 15 %. The IRS waives this penalty if the employer has a good track of the history of filing the required returns and the tax payer makes the payment on time. Additional information can be obtained from the IRS site, check Penalty Relief Due to First Time Penalty Abatement.

 

Reporting Employment Taxes:

Employers state the compensation and wages, which they paid to their employee by filing the required forms and submitting them to the IRS. Forms like Form 940, Form 941, Form 943, Form 944 and Form 945 are filed for employment tax forms. E-filing these forms are an easy, accurate and secure way.

Employers must file their Form 944 every year, which has an estimated total of $ 1000 or less for the current financial calendar. The employers are required to give the employees with their Form W2, Wage and Tax Statement at the end of each year. The form must contain the information regarding the tips and other compensation.

The employers of small businesses must file the required Forms W-2 and Form W-3, Transmittal of Wage and Tax Statement along with the Social Security Administration and to the state or local tax departments if it is required.

IRS Offers 8 Tips for Teenage Taxpayers with Summer Jobs

Posted by Admin on 28. August 2017 10:31

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 by offering few tax saving tips for the blooming young tax payers of the nation with a summer part time job.

 

IRS Tips for Teen Tax Payer with Summer Jobs

The Internal Revenue Service provides some effective tax tips for the betterment of the tax payers and to increase the tax filing in the nation. As a part of it, recently the IRS has provided tax tips for the teens who are engaged in part time summer jobs. Let us check out those tips and find out how effective they are to the working teens.

1.      Withholding and Estimated Tax:

Normally the employers of the teenager or student employees withheld their taxes from their paychecks. In some cases, the employee is considered as self-employed, hence they need to pay the taxes directly to the IRS. This can be easily done by making the estimated tax payments during the financial year.

2.      New Employees:

The individual must file form W-4, Employees Withholding Allowance Certificate if he/ she get a new job. Apart from that, the employers use this Form for estimating the federal income tax to withhold from the employees pay. A taxpayer can make use of the IRS Withholding Calculator tool from the IRS site to guide in filling the Form.

3.      Self-Employment:

Money, which came through self-employment, is taxable and the individuals can engage in various types of work that comes under self-employment. The individuals must maintain a log to keep the records of money received and the expenses paid related to their work. Generally, a tax deduction helps on reducing the taxes of the individual taxpayers.

4.      Tip Income:

Tips received by the employee also need to be reported to the IRS. Hence, an employee must maintain a daily log to record the daily tips accurately. If the employee receives more than $ 20 in cash in a single month, then the employee reports the tip income to the employer.

5.      Payroll Taxes:

Some of the student taxpayers may earn little from their work to owe the income tax. The employees of the taxpayers withhold the Social Security and Medicare taxes from their pay usually. In another case, if the individual taxpayer is self-employed then the above said Social Security and Medicare taxes is still a due and must be paid by the taxpayer on time.

6.      Newspaper Carriers:

Special rules apply to newspaper distributor or carrier. If the hired person qualifies certain criteria then he or she is self-employed. On the other hand, if the person does not qualify the criteria and the age is under 18 years then they can exempt from the Social Security and Medicare taxes.

7.      ROTC Pay:

If a taxpaying individual is engaged in a ROTC program, in such scenario pay for the summer advanced camp is taxable. However, other allowance, which is received by the individual, is not taxable. Check Publication 3 for further details.

8.      Use IRS Free File:

IRS provides IRS Free File option through which the tax payers may prepare and file their federal income tax return for Free. Note that the Free File option is only applicable on the IRS.gov. If the taxpayer did not earn enough amounts from the work to file a federal tax return, but by law, the concerned person wants to do so if the taxes were withheld. For instance, a person can file a tax return and he/she can qualify for a tax refund or a refundable credit. In such cases, IRS free file can guide the concern, people.

A word to the fresh tax payers, avoid scams. Remember that the IRS never contacts you in person through any social media or text message. Usually, the contact is made through email. So stay away from the scammers and think wise with tax filing. 

Stay tuned with etax1099 to get the latest tips and updates on federal income taxes! And don’t forget: you can now e-file your quarterly business taxes on Forms 1099  with ETAX1099.com

Best Ways to Avoid an IRS Tax Audit - Etax1099 Tax Tips

Posted by Admin on 8. August 2017 12:49

Though the audit is rare in the United States, most Americans want to avoid them for some reasons. According to Internal Revenue Service (IRS), only a little percentage of the people is audited. But the figures are rising considerably every year since 2008. Note that for the audits, the taxpayers are selected randomly, so you cannot protect yourself from the tax audits if the choice is made. But you can lower the risks by following the tips below. 

 5 Simple Ways to Avoid Rax Audits

Checking your figures:

The most common mistake that the tax payers do and the red flags for tax auditors is an error in entering the data. Even we might have followed the advice of “double check the form before submission”, we will end up in erroneous data entry though it is unintentional. Do you believe, some people forget their income figure at the time of tax filing? And they never get all their forms such as a bank, income reports and investment statements gathered before filing. 

Reporting of dependents and exceptions; matching the numbers in the forms is a prime factor. As the automated system of IRS can find the discrepancies in the provided data easily and they never know whether it is a mistake or purposefully made. So ensure that when you are filing a tax through online, the tax provider is an IRS authorized tax service provider and offers you an error-free tax filing.

Be truthful:

When you are honest while filing the tax returns, you eliminate your stress. If the tax filing is 100% perfect then you reduce the chances of audits. Accurate reporting of income, credits, deductions and other inclusions can keep the tax auditors away. In the event of not reporting the correct income and trying to manipulate it can attract the attention of the auditors and increases your stress too.

Explanations:

When you think that your tax return might invite the tax auditor, then there is no harm in including the extra forms, receipts, worksheets etc. Those attachments must prove the inconsistencies in the previous form tax returns like your name, dependents, deductions, and income. This can be explained as, when the charitable deduction is higher than the previous year then a proper explanation along with the copies of canceled checks can serve as a proof.

Realistic Deductions:

Unrealistic deductions that are found by the IRS either by the individual tax payers or business owners can attract the tax auditors. For instance, if you are an owner and file Schedule C consisting of business and profit expenses; reporting losses for consecutive 2 or more years. In that case, the tax auditor might ask the tax filer to submit the proof. So check the real possibilities of deductions and apply according. When the deductions are found unusual then the auditors have no choice other than conducting audits.

E-Filing all your income:

E-filing your forms might decrease the number of errors. When the errors are minimal then the forms are appropriate and this will decrease the audits tremendously. Compared to e-filing of the tax returns, paper filing might contain lots of errors. Opting for e-filing lets the tax filer to review the form once before submitting and lets the user correct the mistakes before submitting the form. And with e-filing, the tax deductions can also be done accurately without any faults.

On the whole, when you are correct in your submission there is no way that the tax auditors are going to disturb you. Get tax audit guidance with our etax1099 tax expert’s team and get your queries answered within 1 or 2 working days. 

How to Differ Form 1099 and W2 Form? - Independent Contractors Vs Employees

Posted by Admin on 25. July 2017 06:19

Many taxpayers confuse themselves with 1099 form and W2 form as both the forms serve a different purpose for workers. Federal Income Tax forms 1099 and W2 are used to report an individual’s income which is earned from various sources throughout the financial year. But each form is issued under different scenarios and it requires different approaches when you file federal income taxes. If you are an independent contractor, you must file 1099-MISC Form; if you are an employee you must file W-2 Form with IRS. This article brief you the basics of W2 form and 1099 forms, so that it avoids the misperception while you file the tax.

Form 1099 Vs W2

About W2 Form

A Form W-2 is a Wage and Tax Statement, if you are an employee and receive a fixed salary or wage from your employer then you will receive Form W2. As per IRS, an employer must record their employee’s salary and tax information; in turn, report it to the employee on a W2 form. W2 Form contains the details of the employee’s earned income from the employer and this can be used in the calculation of the employee’s gross income. Also, it specifies the tax withholdings for the year which includes both federal and state taxes.

Form W-2 is due date

    •  -to your employee copy by January 31,
    • -Paper filing with IRS by February 28/29 and
    • -E-filing with the IRS by March 31.

About IRS 1099 Form

Form 1099 is used to hold the records of income that you receive as an independent worker while working for different sources. For instance, if you are a freelancer and working for multiple clients, then you may receive 1099-MISC Form from all the clients when they have paid you at least $600 during the financial year. An individual may receive different IRS 1099 series forms, depending upon their sources of income or money making activities.

Form 1099-MISC is due date

  • -to your recipient copy by January 31,
  • -Paper filing with the IRS by February 28/29 and
  • -E-filing with the IRS by March 31.

How Independent Contractor Differs from Employees?

 

  • As a self-employed or freelancer or contractor, you must calculate your own 1099-MISC taxes and need to file and submit with the IRS before the 1099 due date on a quarterly basis.
  • As a W2 employee, payroll taxes automatically debited from your salary then paid to the IRS through your employer or organization on the yearly basis.
  • If you are not sure about whether you are hired by independent contractor or employee, you can able to submit SS-8 Form with IRS. IRS people will find your status based on provided information, keep it in mind this SS-8 Form will take 6 months to process and returned.
  • Form 1099-MISC reports income of prizes won, rent payments, fishing boat proceeds, and attorney fees of $600 or more.
  • Form W2 reports total income, social security, and Medicare income and shows how much amount has been withheld from employee pay for federal income taxes to state and local taxes.
  • 1099-MISC Form specifies only the income you received from the client but does not contain the information related to the taxes which you have paid to the government.

Stay with us for more tax tips with Etax1099, Compare your income information on both the forms and apply for it accordingly. Etax1099 helps you to file 1099 taxes comfortably.  If you have any queries give us a call or send us a live chat or 24*7 basis on weekends also. You can Email us at anytime support@tax2efile.com.

IRS Warns Taxpayers to know about Summertime Scams in 2017

Posted by Admin on 11. July 2017 11:17

During the past tax filing season, most of the taxpayers received Tax tips to their email inbox directly. Those tax-filing tips helped the tax filers to get the tax related information and helped to file their tax returns appropriately. As the taxes are year-round for most of the taxpayers out there and also many taxable scenarios rise during the summertime. Hence, the Internal Revenue Service provides a summertime tips program starting from July 3rd, 2017. The IRS wants the taxpayers to sign up for the email service so that they can get the basic information and clarification on their taxes. It also lets the tax filers learn about the tax complications of events, which occur more often during the summer time.

Summertime Tax Tip Topics

Few of the Summertime Tax Tip topics that are offered by the IRS in this tax season 2017 -18 include the following:

1.       Beware of the tax scams as those tax scams do not take vacations.

2.       Teens and their summer part-time jobs.

3.       Tax implications on vacation home rentals.

4.       Tax implications that you need to know before getting married.

5.       IRS notices – What you could receive in the mail from the IRS

Those IRS tax tips that are sent through the email service are available in both English and Spanish. The provided tax tips are new and they hit the email inbox’s every three times a week during the month of July and August. The subscribers are also entitled to receive the tax tip every day of the week during the tax filing season and issues a special edition tax tips throughout the year.

The summer tax tips are more helpful to the tax files as they come in plain language and importantly it covers a wide range of essential topics that are related to taxes. Among the tax tips, the IRS warns the taxpayers in this summer tax filing season to watch for tax scams.

IRS Warns  about Summer Time Tips 

Recently the Internal Revenue Service issued a warning related to tax frauds, which is continuing across the nation even most of the tax filing is completed by the taxpayers. In spite of those conditions, people need to remain on alert to the emerging schemes that are involved in the tax system. Discussing few of the swindles from which the people need to keep away.

Robo-call Messages:

Remember that the IRS never call and leave a prerecorded message for a callback. In this case, the scammers warn the persons that if they do not call back, they will issue a warrant against the victim. If a person attends the call, then he/ she will be asked to do an immediate payment either by debit card or through wire transfer.

Private Debt Collection Scams:

Recently the IRS started to send the emails directly to the small group of taxpayers whose overdue of tax accounts are assigned to private sector collection agencies. Hence the taxpayers must be alert for the scammers who are posing as private collection firms. The IRS authorized firms will call about a tax debt the person has had.

EFTPS scam:

Electronic Federal Tax Payment System (EFTPS) linked scam is a new way that the scammers do in recent times. In this case, the scammers call and demand an immediate payment. The caller also adds that he/she is associated from the IRS and tells that letters mailed to the taxpayer were returned to the IRS as undelivered.

Finally, the scammer threatens the victim with arrest if the payment is not done immediately. And the victims are told that the debit card is linked to the EFTPS, which is controlled by the scammer.

Scams Targeting a Specific Sector of People:

The persons with limited English proficiency are the recent target of the phone scams that continue to occur across the country. Here the con artists converse with the victims in their native language and threaten them with police arrest, deportation and license revocation among other things. The scammer warns the victim to pay the tax amount promptly else they need to face the consequences.

How to Ensure it is a Call from the IRS?

The IRS contacts the people through regular mail delivered by the United States Postal Service. In few cases, the IRS will connect you via call or come to the home in the following circumstances:

 

    • ·         When the person has an overdue tax bill.
    • ·         When there is a need to secure a delinquent tax return or employee tax payment.
    • ·         Auditing the business as a tour or
    • ·         At the time of criminal investigations.

 

So stay away from the tax scams and be alerted. If you have experienced or received a scam call, ensure to report them to the concerned department in IRS. 

10 Mid-Year Tax Tips for Small Business Owners and Operators

Posted by Admin on 26. June 2017 10:09

Cheers, all successful taxpayers for surviving the 2017-18 tax year. Now it is time to start planning for the next financial year. Isn’t it too early to start? But it is good enough to initiate our plans and prepare our tax details right now as it can reduce hectic last minute tax filing. Form 1099 refers to an “Information Return”. A person might get 1099 form through the mail when he/she had received income from various forms other than salary during the tax year. The earnings may be through self-employment, small business, interests, dividends, government payments and more. The firm or entity that pays you must file the appropriate 1099 form and send it to you by January 31, 2018.

Mid-Season Tax Tips for Small Business Owners 

When you are engaged in small business, then you must file 1099 form for the small business. Like individual taxpayers, small business owners can also enjoy the advantages of tax-saving techniques. Presenting you top ten strategies at the midyear for small business:

1. Stockpile on Depreciable Equipment:

As per the law, the maximum section 179 deduction for business equipment is restricted to $25,000 only, whereas 50% bonus reduction is not allowed this year. Hence at the time of tax return, you can increase the deductions, comprising retroactive extensions of favorable provisions.

2.  2.  A New Start-up:

If you are starting a new business, then you are allowed to currently deduct up to $5,000 of qualified start-up expenses. In order to qualify for this tax break, you must be officially open for business.

3.  3. Self-Employment Taxes are Partially Deductible:

When you are an employee and working for an employer, then the employer is responsible for paying half of your social security and medical care tax obligations. But if you are a business owner or self-employed you must pay all those taxes. Then you can claim a deduction equivalent of your employer’s portion through Schedule C or Schedule C-EZ.

4. Hire from your Family:

When you are looking to hire workers, your first choice must be your family members. Yes, when you hire your spouse and offspring you get significant tax savings. And for your children, while they declare the income their tax rate is much lower. Additionally, if you are paying health insurance for the family members then those expenses are also coming under tax deduction through Schedule C or Schedule C-EZ.

5. Business Trips as Vacation Time:

Generally, you can deduct travel expenses such as airfare, transportation charges, lodging and half of the meal costs if the primary purpose of the visit is business related. Note that certain expenses like sightseeing and jaunt are nondeductible.

6. Passion Towards Business:

 For some people, their hobby might have turned into a business. Nevertheless, if any loss is incurred, then they must portray that they are engaging in the activity of generating profit. Else it comes under the “hobby loss” rules. So ensure to submit records to stand up the challenge of IRS.

7. Rejoice with your Staff:

For business, there is a particular part of deductions that are related to entertainment and it is limited to 50% of the cost. However, for Labor Day picnic or July 4th when the entire workforce is invited you can have 100% of special tax law exception.

8. Fix Minor Repairs:

Under tax law, minor repairs are deductible whereas the cost of major improvements must be capitalized. On the other hand, when there is a major repair, IRS treats the entire cost as a capital improvement.

9. Claim Credit for Interest:

Many entrepreneurs and small business owners mostly depend on credit and loans. The IRS permits the small business owners and self-employed persons to claim tax breaks on interest and carrying charges on loans.

10. Make Estimated Tax Payments:

As a self-employed employer, it is your responsibility to take care of deduction from each paycheck. It is wise to make quarterly estimated payments else you might faint at the giant tax bill and also hefty underpayment penalties.

In order to prepare tax expenses for the financial year, you may need a professional assistance. To get legal advice related to your business, tax return preparation, filing Form 1099 for small business/self-employees you can connect with etax1099.com

  

Trump's New Tax Plan and Tax Cuttings in 2017 - How it Effects You

Posted by Admin on 3. June 2017 10:58

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 deductions and aims to simplify the tax filing process and usage of itemized deductions.
  • Revoking the Alternative Minimum Tax (AMT), 3.8% health care investment tax obligatory under Obama care and estate tax.
  • Trump’s tax plan additionally has 3 tax rate brackets, but there is a change in the level that differs from the prior proposal. It will be 10%, 25%, and 35%, hence the top tax bracket rate of 39.6% will be eliminated.
  • On the first $13,000/ $ 24,000 of income, there will be no taxes for single or married standard deduction.
  • The tax plan also includes tax relief for families with child care expenses.
  • Corporate rate will further come down to 15% and can expect a repatriation tax on funds for the companies that hold overseas.
  • It is assumed that the higher economic growth will offset the lower tax revenues. But the details are spelled out for the next year as the tax reform package is worked by Congress.

 

When you go through the above tax plan, it seems to have tax breaks for the rich people, but the controller of administration says that the changes in the tax plan would surely benefit the middle-class people.

 3 most attractive features that you can see in this Trump’s plan could be:

1.    1. Reduced corporate tax rate by 15% which is an expensive proposal.
2. Pass through provision will make any professionals to set up their legal tax-shelter.
3. Changes to the individual tax code

Assuming that the tax plans will get passed by the Congress, but most of the tax changes which are brought by President Trump will go effectively from 2018 as the tax plan for the 2017 year has been established already.  On the other hand, the houses of Republicans also have come up with a tax plan in order to cut personal and corporate taxes. But when compared with the proposed tax plan of the President, this is not found to be aggressive.

To get the proposed tax form across all the branches of the government, tax plan agreement must be compromised. This is because the President’s administration has not laid any actual plan to pay for the tax cuts and also there are no proposed net spending reductions to offset of Trump’s tax plan of $7 trillion cost.

According to the sources and when checking the proposed tax plan of President Trump, the tax plan will be more advantage for the middle-class people as they could find modest tax savings. On the other hand, the premium class taxpayers can see most in savings by lowering the highest marginal tax rate, increase in tax reduction and a repeat of the Alternative Minimum Tax.

On the whole, this proposed tax plan might increase the deficit by $10 trillion after 10 years. But reconciliation rules mention that law cannot increase the deficit over a decade by a single dollar. In short, middle-level tax-payers can foresee good tax savings whereas the high-income earners will be taxed heavily.

Complete PDF about TRUMPS PLAN

Stay tuned with etax1099 to get the updates of Tax Reform That Will Make America Great Again! And don’t forget: you can now e-file your quarterly business taxes on Forms 1099  with ETAX1099.com

 

 

 

March 31st - IRS 1099 Forms Deadline and Due Dates for 2016 Tax Year

Posted by Admin on 31. March 2017 02:25

Form 1099 is series of 23 documents; the IRS refers as information returns about income. We have different types of 1099 forms (1099-MISC, 1099-K, 1099-INT and etc) that reports the various type of incomes during the year. The due date for 1099s forms is March 31st, 2017. 


IRS 1099-MISC Form

1099-MISC reports all the miscellaneous income transactions, the total amount you received through the payments from a single person for your services over the year.  

1099-MISC Deadline and Due Dates

  • Recipient copy by January 31, 2017
  • IRS Paper Filing - Box 7 by January 31, 2017
  • IRS Electronic Filing – Box 7 by January 31, 2017
  • IRS Paper Filing – Other Boxes by February 28, 2017
  • IRS Electronic Filing – Other Boxes by March 31, 2017

IRS 1099-INT Form

1099-INT form reports all interest income from banks, financial institutions, government agency, and brokerages. You may have to report income tax on interests of these received payments. 

1099-INT Deadline and Due Dates

  • Recipient copy by January 31, 2017
  • IRS Paper Filing by February 28, 2017
  • IRS Electronic Filing by March 31, 2017

IRS 1099-K Form

1099 K form is used for reporting some payment transactions (debit, credit, third-party payment network transactions) for improving voluntary tax compliance. 

1099-K Deadline and Due Dates

  • Recipient Copy by January 31, 2017
  • IRS Paper Filing by February 28, 2017
  • IRS Electronic Filing by March 31, 2017
Today Efile your 1099s or ACA forms with IRS and avoid late fee or penalties. 

What are the Due Dates for 1099 Forms in 2016 Tax Year

Posted by Admin on 30. March 2017 03:48

Prior to knowing the due dates for 1099 forms 2016 to 2017, it is necessary to know what are IRS 1099 forms especially the ones being described here- Forms 1099-MISC, 1099-K and 1099-INT. 

1099 Deadline: 1099 Filing and Submitting Due Dates

March 31st, 2017 is 1099 due date for filing 1099 forms electronically. 1099 MISC due date is on or before 31st January 2017 when reporting nonemployee payments in Box 7. If the deadline for 1099 form filing falls on Saturday, Sunday or any legal holiday, it might be filed on the following business day. This due date applies to all 1099 forms including 1099-K form and 1099-INT form. It is necessary for you to keep in mind that in order to e-file form 1099-MISC or any other 1099 form it is important for you to have the software for generating a file as per specifications in Publication 1220.

1099 filing deadline

 

What is 1099-MISC Form?

The 1099-MISC form is frequently used by companies for reporting payments to vendors providing them their services. The form contains a total of 10 boxes for reporting different amounts paid to the vendors. However, companies made use of Box 7 for nonemployee compensation. The 1099-misc form is basically used for the purpose of reporting payments to small service companies and self-employed individuals. Examples of such companies and individuals include cleaning services, graphic designers, grass cutting services, freelance writers, forum moderators, web developers and other service providers. The 1099-misc form is also used for the purpose of reporting the payments made to partnerships, attorneys, and unincorporated business service providers.

1099-MISC Deadline (1099-MISC Due Dates)

  • Recipient copy by January 31, 2017
  • IRS Paper Filing - Box 7 by January 31, 2017
  • IRS Electronic Filing – Box 7 by January 31, 2017
  • IRS Paper Filing – Other Boxes by February 28, 2017
  • IRS Electronic Filing – Other Boxes by March 31, 2017

What is 1099-INT Form?

The IRS 1099-INT form reports the interest earned from different accounts like US savings bonds, interest-bearing checking accounts, and savings. 1099-INT form identified the difference between dividends and interest, which are directly reported on 1099-DIV form. The recipients who do not qualify to get a form have the obligation of reporting their income as per regulations by the Internal Revenue Service.

1099-INT Deadline (1099-INT Due Dates)

  • Recipient copy by January 31, 2017
  • IRS Paper Filing by February 28, 2017
  • IRS Electronic Filing by March 31, 2017

What is 1099-K Form?

The 1099-k form is filed by PSEs or Payment Settlement Entities for the payments which are made during the settlement of a payment transaction that is reportable. These payments include the ones made by way of payment cards like debit, credit and even gift cards or cards through third party network.

1099-K Deadline (1099-K Due Dates)

  • Recipient Copy by January 31, 2017
  • IRS Paper Filing by February 28, 2017
  • IRS Electronic Filing by March 31, 2017

Two Crucial Dates for Issuing Form 1099-MISC

There are two crucial dates for issuing form 1099-MISC and it is very important to remember both the dates. One date is for mailing form 1099-MISC to the recipient and the other date is for reporting it to the Internal Revenue Service. Both these dates are of prime importance failing which there are strict penalties. There is one thing that can be done to keep the dates in mind and that is using an online tax filing service for the entire procedure. Today Efile your 1099 Forms and Avoid Penalities. 

How to Avoid Major Mistakes When Filing 1099 Form Online

Posted by Admin on 16. March 2017 03:45

It is quite common to make mistakes in the 1099 filing procedure. There are many mistakes that the filers are found making in common when they choose to efile 1099. Here, you will come across some mistakes in the 1099 form filing procedure. All recognized characteristics have properly been removed for protecting the filers. 

How to Avoid Top 8 Mistakes in 1099 Filing Process 

Here we provided common mistake when you are efiling 1099 form online.

1. Wrong Way of Filing the Corrected Form

This is one important mistake that should be taken care of when filing form 1099 online. When filing corrected form 1099, make sure to check the box that has been marked “CORRECTED” right at the top of the form. This mistake is being pointed out here because it is quite easy to miss checking the box.

2. Typos in Name and TIN

The IRS checks the name and the TIN against its database. When the IRS finds that the information provided on the 1099 form is not matching its records, it does not switch characters around or try several combinations of making a match. The IRS issues a CP2100A or CP2100 resulting in the penalty up to $230 for the tax year. However, the IRS is well aware of honest mistakes and offers some method to the filers for contesting penalties and providing information correctly. Still, it is necessary for you to double check the name and the TIN.

3. Which Box is Correct?

When carrying out 1099 electronic filing it is necessary to know which box is right and which is wrong. Therefore, it is very important for you to take the services of an accountant who might be of good help. This is because most of the times it happens that people do not have relationships with the recipients who got the payments.

4. Your State might require 1099 Online Filing

Depending on the State where you live, your State might have 1099 filing requirement. There are States that take information off from the federal form by way of Combined Federal State Filing Program. The states that take the SF/CF information might require separate 1099 filing in the case of withholding. Other states might need separate filing like sending in CD-ROM, e-filing or paper filing. Therefore, it is important for you to check with the state that you live in if you do not have any idea about the 1099 file online procedure. However, the requirement should not be ignored.

5. Are you the Payer?

The taxpayer is one who makes payment and the recipient or payee is one who receives payment. Form 1099-MISC has separate columns for both. Getting them backward means having to fix them eventually with the Corrected form.

6. Missing 1099 Deadline

Remember, there is a due date for form 1099-MISC but this does not mean that you must rush with the filing procedure. Planning is very important. March 31st is the due date for 1099 forms and now plan accordingly.

7. Avoid Attempted Fraud

Any kind of unnoticed attempted fraud should be avoided as this is a mistake that the Internal Revenue Service will take steps over.

8. Slow Down

Take a good time in filing form 1099-MISC. Try to complete all the important steps by providing correct information.