Posted by Admin on 8. February 2017 03:38
The 1099-misc form is used for reporting specific payment types made in business or trade. If you are self-employed or in business, you might have to submit form 1099-MISC to both the business or the person you are making payments to and to the IRS. You can even submit form 1099 online. If you are a businessman or an individual making payments to others then it is necessary for you to remain aware of 1099-MISC instructions. IRS form 1099-MISC instructions will help you in completing and submitting Form 1099 in the best way possible without making any mistakes.
When is Form 1099-MISC Needed?
Trading companies and business will have to fill out a 1099-MISC form for independent contractors, individuals and subcontractors and others in circumstances where:
Payment of $600 or more is made for:
· Crop insurance proceedings
· Cash payments to fishermen
· Proceed payments made to lawyers
· Health and medical care payments
· Awards and prizes
· Services like materials and parts
· Rents and various other payments type not covered under any other document that reports all sorts of financial information.
Payment of $10 or more is made for:
· · Royalties, and
· · Broker payments in lieu of tax-exempt interest or dividends
Such payments need to be reported if the individuals receiving these payments are not corporations. In other words, these payments should be reported if the recipients are partnerships, individuals or limited liability companies treated as sole proprietorships or partnerships. Other different payment types made to corporations need to be reported by making use of Form 1099-MISC.
Form 1099-MISC Instructions- Steps for Preparing Form 1099-MISC
It is necessary for you to request that your contractors, vendors and other recipients of payments submit Form W-9 to you. Form W-9 is important because it will give you the legal address, name and the taxpayer identification number of the vendor. This information is of great importance because it is needed when preparing 1099-MISC form. Further in the form 1099-MISC instructions category, it is necessary for you to keep a track of all the payments that you make in a bookkeeping system. It is important that you know whether the payments fall under the categories that have been listed above. It is also necessary that you know whether the payments that you make to recipients reach the $600 or the $10 threshold. Finally, you must also have an idea about the specific amount that you pay to a recipient during a calendar year.
1099-MISC Deadline and Penalties for Late Filing
You must provide the payment recipient with a copy of Form 1099-MISC by February 1, 2017. The payments should be reported for the 2016 tax year. The IRS should receive Form 1099-MISC by February 28, 2017. You also have the option of filing Form 1099-MISC electronically by March 31, 2017. A 30-day extension for filing 1099 forms with the IRS can be requested by businesses. They can request the extension and file their 1099s using 8809 Form. It is to be noted that an extension should not be treated as the permission to use additional time for providing a recipient with form 1099.
If you are unable to follow the form 1099-MISC instructions properly, you are likely to make mistakes and even fall prey to the penalties of late filing form 1099-MISC. The penalties are as follows:
- $60 penalty for late payment of form 1099 by 30 days and prior to 1st August.
- $30 penalty for late payment of form 1099 by 30 days
- $100 penalty for filing 1099 on or after 1st August.
- $250 penalty for international filing failure.
Posted by Admin on 31. January 2017 06:34
Every business needs some kind of help. Businessmen generally hire people for different operations. For example, graphic designers are hired for creating logos for the business and customer service agents are hired for dealing with the sales. If these individuals are used in the form of contractors, they should be given form 1099-MISC. IRS 1099 MISC form is used by the IRS for businesses to report the payments that they make to people who are not employees but who have been paid in exchange for their services.
When is 1099 MISC Form Issued?
1099 MISC form is issued to someone in following situations:
- The contractor is paid $600 or more in 2016 tax year.
- Minimum $10 is paid in broker payments or royalties in lieu of tax-exempt interest or dividends.
- $600 or more is paid for services, rents, awards and prizes, health care and medical payments, other income payments, cash payments and payments made for the national principal contract to estates, individuals or partnerships.
- $600 or more is paid to a lawyer
IRS 1099 MISC is also used for reporting direct sales of minimum $5,000 of different consumer products to buyers for resale anywhere excluding permanent retail establishments. In addition to this, you will have to file form 1099-MISC for every individual from whom you have withheld some kind of federal tax income under backup withholding regulations irrespective of the amount you have paid.
10999 MISC Filing Due Date 2016 tax year
The 1099 MISC should be in the hands of the recipients by 31st January 2017. Nevertheless, if any substitute payments have been made in lieu of any proceeds or dividends to a lawyer, you have time till 15th February 2017 for getting the 1099 forms in the hands of the recipients. An important factor to consider in this circumstance is the mailing time. In case you are filing form 1099-MISC manually and you find no data in Box 7, you have time until 28th February 2017 for getting Copy A to the IRS. You have got time till 31st march, 2017 for getting Copy A to the Internal Revenue Service if you are filing form 1099-MISC electronically and you do not find any data in Box 7. In all circumstances, it is necessary for you to have the correct idea about 1099 MISC deadline. The 1099 MISC filing deadline is important in order to avoid penalties.
Who do I Send Form 1099-MISC?
As per 1099-MISC instructions, you need to issue the form 1099-MISC to every individual who has received a payment of minimum $600 in services, rents, awards, prizes and other income payments. There is no need to e-file 1099 for personal uses. 1099 online filing is one of the best options that you can go for.
Posted by Admin on 27. January 2017 02:55
It is necessary for you to get form 1099 if you receive money from a government or business entity during the year which is reportable on your taxes. File 1099 online by taking the services of various online filing service providers. However, prior to considering to e-file 1099 make sure that you have a basic understanding of the form. It is in no ways a tax document but an informational form that needs to be filled out by an individual if he or she receives money during the year of reportable taxes. There are different varieties of 1099 forms and 1099 reporting to the IRS is very important. This is because with this kind of reporting the government is informed about the income you have even if you do not mention it in the tax return. However, if the IRS discovers that you have not reported additional taxes owed in the form, it will send notifications and charge penalties along with interest beginning right from the first day of the late tax payment.
The types of 1099 forms you may receive are as follows:
· Form 1099-INT; informs the IRS about payers of interest income.
· Form 1099-K; an IRS reports the payment card and third party network transactions.
· Form 1099-MISC; reports payments to independent contractors.
Efile your 1099 forms without penalties and late filing fee by January 31, 2017, for 2016 tax season.
Failure to E-File on Due Dates
The IRS will penalize companies for not filing 1099s before due date and for incorrect 1099s forms. Companies/Individuals should issue all 1099 forms including 1099-MISC forms by January 31 for the previous tax year. IRS 1099-K and 1099-INT forms are must issue by January 10. If filing by paper, businesses must file these 1099 forms with the IRS by February 28. If filing electronically, companies must e-file the 1099s with the IRS by March 31.
Penalty for Making Late Payments
There is a definite penalty for not filing 1099 and even for making late payments. You can always expect the Internal revenue Service to impose a penalty for late filing 1099. This penalty is around 0.5% per month or partial month during which the taxes remain unpaid. The penalty is generally capped at 25%. In case 1099 earning that you complete forget to mention on your tax return gives way to an understatement of the tax bill, the penalty for 1099 late filing increases to 20% accruing immediately. Therefore, if you are looking to avoid a penalty for not filing 1099-MISC then it is necessary for you to amend your tax returns. Make sure to go through the form carefully and include all taxes owed.
Posted by Admin on 20. January 2017 02:49
Form 1099 is basically an IRS or Internal revenue Service form that can be used by the taxpayers for reporting certain payments. There are different varieties of this form available for business owners and common individuals ranging from letters A to SA. Nevertheless, it is important for business owners to make use of Form 1099 MISC for reporting the money that they pay to the independent contractors. This form carries information regarding the business and independent contractor that is being paid the money. In the case of any error in the form, it is necessary for an individual to go for 1099 correction at an instant. There is a definite 1099 corrections deadline within which the revised form should be submitted to the Internet Revenue Service, independent contractor, and the state agencies.
How to Correct 1099 MISC Form?
1099 misc correction involves identifying the type of mistake or error as the first step. The 1099 correction form errors are of two types and they are Type 1 and Type 2. Type 1 error is incorrect payee name, code or dollar amount and Type 2 error is incorrect or missing taxpayer identification number. It can also be the reporting of an invalid address. Once the type of error is detected, the following steps need to be adhered to for correcting the erroneous information on the form.
- Confirming the error type.
- Referring the original 1099 MISC during the corrections. Right information needs to be included as available on the original form.
- Obtaining another 1099 form MISC from IRS.
- Obtaining form 1096 from IRS which summarizes 1099 information.
- Entering the correct information and checking the”corrected” box right at the top of the form.
- Completing the correct information on 1096 form.
- Mailing the revised copy of the form to the IRS and independent contractor.
Posted by Admin on 12. January 2017 03:59
IRS TIN matching is one of the most important elements of the supplier validation procedure. TIN or Taxpayer Identification Number matching is a free service offered through the IRS eServices. It is one of the best practices and it is very important to match the TIN offered on the W-9 of the supplier with the TIN available on the file with the Ialtnternet Revenue Service while setting up the supplier in one’s master file. IRS TIN matching program was brought into action for the taxpayers of Form 1099 earnings. However, it was subject to backup withholding provisions of section 3406 (a) (1) (A) and (B) of IRC or Internal revenue Code. Before filing an information return, the program participant might check the TIN that is provided by the payee against the TIN combination or name contained in IRS database. This database is maintained for the TIN program.
Benefits of TIN Matching Program
Companies submitting IRS 1099 forms to Internal Revenue Service can highly benefit from the use of the TIN number search program. This program is basically a completely free of cost service that can be accessed by an authorized individual. On the part of the IRS, the individual is not informed about the right TIN but he or she is informed that the TIN and the Name combination submitted is incorrect. The main purpose of this program is helping individuals avoid any kind of mismatches. One of the major benefits of this program is that it gives individuals the flexibility of preparing forms 1099 in the best way possible. This helps individuals in saving penalty potentials by responding on time.
Areas Covered in the TIN Program
The areas covered in the program include:
· · Basic know-how of IRS e-services
· TIN matching
· · The process of applying for the use of IRS e-services.
· · The right time for using TIN Matching
Posted by Admin on 19. December 2016 04:42
Etax1099.com is an IRS authorized efile service provider for filing 1099 taxes online. Etax1099.com offers customized services for filing 1099 taxes for the tax professionals and even for the individual filers reporting their 1099 forms with great ease.
Why Take the Services of Etax1099.com?
Etax1099.com offers filing features in bulk and even offers customer support on the phone, email, and chat. It is very easy to efile 1099 using the efiling services of Etax1099.com. This is a form that reports income or earnings that have not been taxed in the form of a withholding. The individuals who receive this form suffer from great disappointment. Nevertheless, it is necessary for the individuals to set aside some part of their earnings annually for making the payment for taxes on 1099 form. It is also important to understand that 1099 form can even complicate tax returns of individuals. This is due to the fact that the method of tracking different types of taxable earnings can be very difficult. Therefore, it is always a good idea to take the services of Etax1099.com for filing 1099 form online.
Major Benefits of Efile 1099 Forms with Etax1099.com
One of the major benefits that individuals get when they file 1099 online with Etax1099.com is that they get the advice of experienced tax payers. This is highly beneficial for all those individuals who are completely new to filing 1099 form. Experienced taxpayers are able to provide the complete details of the entire procedure that needs to be followed in paying the taxes. They also help individuals with ways that they can use for avoiding the payment of penalties in case of late payments. Apart from this, individuals also get the scope of deciding on the right tax filing process as advised by Etax1099.com. This is important because on the part of the taxpayers it is necessary to be diligent and careful when it comes to making the right choice of the best tax online filing service provider.
Register for free today to Efile your 1099 forms with ETAX1099.com
Posted by Admin on 1. December 2016 04:41
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 the help of this checklist, you will be completely surprised to find the amount of time you will be saving by having all your information beforehand.
Important Inclusions of the 1099 Checklist
The 1099 checklist contains the following points that are important to be included when filing 1099 online.
It is necessary for the IRS to have a basic understanding of the individual filing taxes and the one who is covered in the tax return. This can be done by using the dates of birth and social security numbers of your dependents or spouse.
Information about Income
This will include the income from jobs, income from local and state income tax refunds or unemployment, investment income, alimony received and income from farming or business. The income received from the property sale, pension distributions, social security benefits and miscellaneous income. The adjustments to earnings also need to be included. There are different criteria that can help on reducing the income amount that is taxed and these include:
- · Energy credits
- · IRA contributions
- · Student loan interest
- · Moving expenses
- · Medical savings account contributions
- · Educator expenses
- · Alimony paid
- · Payments of self-employed health insurance payments
There are various other important points that also need to be considered when filing 1099 taxes before the deadline. Therefore, going through the complete checklist is very important.
Posted by Admin on 10. November 2016 23:52
If you wonder what are the IRS tax return filing statuses then it is necessary for you to know that IRS tax return statuses are important. Your tax filing status can have a major impact on the tax benefits that you receive the tax amount that you pay and the standard deduction amount. It might also have an impact on whether you need to file federal income tax return. In this case you will need a federal tax filing status.
List of Five IRS Tax Filing Statuses
Basically, there are five different filing statuses on deferral tax returns. However, there are some important facts offered by the IRS in order to enable individuals in choosing the right and the best filing status.
This is the marital status on the last date of the year and this is your filing status for the entire year. If you find that there is more than one filing status suiting your conditions, you must make the choice of a status that gives you the flexibility of paying the lowest taxes. However, keep one thing in mind and that is filing status for taxes is very important and therefore statuses need to be chosen carefully.
Single Filing Status
This generally applies for individuals who are unmarried, legally separated or divorced as per the state law.
Married Filing Jointly and Married Filing Separately
Married couples might file tax returns together by using this status. Then there is the married filing separately status for filing returns separately.
Head of Household
Head of Household status applies only for individuals who are unmarried and have made payments of more than half of the cost of home maintenance.
Qualifying Widow with Dependent Child
The status applies for spouses with dependent children while meeting other conditions. Determining your correct filing status is very important and this should always be kept in mind.
Alert: Efile your tax form 1099 online at etax1099.
Posted by Admin on 4. November 2016 04:59
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 1099 K reporting requirements include that:
1. All payments made in the settlement of the payment of card transactions like credit card.
2. Payments in the settlement of transactions of third party network if the gross payments for participating payee is more than $20, 000 and there are above 200 transactions with participating payee.
The Verification Procedure
The verification procedure is carried out for ensuring that the tax returns are complete and correct by using the following steps:
TIN Matching Program
The TIN Matching Program which is basically an internet based pre-filing e-service can be used for ensuring that the 1099 K tax form that is submitted features the right TIN. This program allows you to carry out the verification of the TIN provided by the taxpayer against the IRS records before filing information returns.
Name control is basically a series of characters that are obtained from the name of the taxpayer and the TIN on electronically filed returns matching the records.
Filing Procedures and Deadline
1099 form online is due for the merchants by 31st January. Additionally, this form is due to the IRS by the dates that follow:
- · 28th February for filing on paper.
- · 31st March for filing electronically.
It is necessary to efile 1099 within these dates for the proper maintenance of records and for standing up to the expectations of the IRS.
Posted by Admin on 25. October 2016 04:46
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 IRS are called 1099 form penalties and there are some important facts about these penalties.
Major Facts about Late Filling and Payments Penalties
- Failure to file the late payment penalty might apply if you do not file within the deadline of tax filing. Failure to pay penalty might apply in case you do not pay all the taxes that you owe within the deadline for tax filing.
- Failure to file penalty is something more than just failure to file penalty. One should file his or her tax return within deadline each year even if he or she does not have the ability of paying the entire tax amount owed within the due date. This helps in reducing additional penalty for paying taxes late and interest on tax returns. It is also important to have an idea of other options of payment like instalment agreements and loans for making the payments.
- Penalty for late taxes is generally 5% of the unpaid taxes for each month or part of the month for which the payment is late. This penalty accrues right from the day post the due date of tax filing. It does not exceed 25% of the unpaid taxes.
- In case you fail to pay taxes within the tax deadline, you will normally face IRS late payment penalty of ½ of 1% of the unpaid taxes. This penalty applies to part of a month or each month post due date and accrues from the day post the due date of tax filing.
- You might not face penalty for filing taxes late if you have requested for time extension for filing your income tax return and made the payment of minimum 90% of your owed taxes within time remaining. However, it is important for you to pay remaining balance within the time extension granted.
- In case you file your tax return more than 60 days post the extended due date or the due date, the minimum penalty filing taxes late is less than 100% or $135 of unpaid taxes.
- If you are able to show certain reasonable causes behind not being able to pay the taxes or efile the tax returns on time, you might not have to pay such penalties.