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.
Posted by Admin on 17. October 2016 23:23
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 named by the Internal Revenue Services (IRS) as “Information Returns”. There are multiple such forms which report various kinds of income, which people receive in the whole financial year. However, this excludes salary from employers.
What’s New in 1099-INT Instructions
According to the new instructions implemented for 1099-int form, the form needs to be filed on or before 31st January of the year 2017, in the case of reporting compensations provided to non-employees in box 7. Otherwise, people can Efile the 1099-int form by 31st March 2017. There have been no changes to the due dates for furnishing payee statements.
Adding to these 1099 int instructions are some more 2016 general instructions for some information returns. They include information about who should file when to file, where to file etc. 1099 int instructions also state the miscellaneous payments one have paid to each person.
Some Old Aspects for Instructions
Form 1099 int instructions also state one must report any direct sale of consumer products to buyers for resale to any place except permanent retail establishments. One important point to be noted in the form 1099 int instructions is that people should report any federal income tax which they have withheld, regardless of them being included in this instruction. These instructions should be read very carefully by people.
The IRS form 1099-INT includes instructions like reporting incomes made from people’s business or trade. The IRS form 1099 int excludes personal payments from reporting. So NGOs should not file this form since it requires profits or gains for an organisation and NGOs do not engage in profits.
1099-MISC excludes many payments which are not required to be reported, although they may be subject to taxation. Payments which do not require 1099-MISC forms include payments done to corporations, payments done for merchandises, payments of rent to real estate agents, wages paid by employers to employees, Travel allowances paid by business firms to employees etc. The process of paying 1099 form online is very easy and less time consuming. For reporting a 1099 form online one has to have a FIRE Transmitter Control Code. Entities or people, who are responsible for payments, also creates and fills up these forms. Then they send them as per the 1099 form deadline provided in the instructions for these forms. Delay can cause penalties.
Posted by Admin on 3. October 2016 03:41
1099 forms are related to tax where they are used for reporting various types of payments. They have certain due dates, after which, they can lead to some severe penalty. These forms are tax documents which are used for reporting some kinds of payments, which are made by financial institutions as well as others, making payments part of their business or trade as per IRS Regulations.
This 1099 filing can be done in two ways. Firstly they can be done manually. Secondly, 1099 filing can be done electronically through the Filing Information Returns Electronically system (FIRE). These are series of documents which the Internal Revenue Service (IRS) refers by the name of “information returns”. There are various 1099 forms which report the different types of income one may receive the whole year, other than the salary paid by the employer. The entity or the person who makes the payment is responsible for filling out this form and then send it by the 31st of January.
Use of 1099 Forms
Independent contractor income – If someone is working and receiving salary or getting wages, then their employer report their annual earnings on Form W-2 at the year end. However, if someone is an independent contractor or is self-employed, then they will receive an IRS 1099 form from each client who has paid them a specific amount during the financial year. The process for paying 1099-MISC form online is very easy. They are paid electronically through FIRE system. Paying 1099-MISC form online is a good option, as it enables people to process them fast.
Interest and dividend – If someone owns collection mutual fund or stock investments, they will receive an IRS 1099 form for reporting dividends and other incomes from this source. They are not same as the income from the sale of stocks. Rather it is the payment given to shareholders from the profits of the corporation.
1099 Form and 1099-MISC Deadline for 2016
Deadline for 1099 Form
The 1099 filing deadline is extended up to the 16th of February of 2017. However, there has been a new 1099 filing deadline. They must be filed on or before the 31st of January of 2017. If someone who does not meet the deadline, has to face severe penalties for it. If someone is unable to meet the deadline for filing 1099, then they can face penalties. Also, if one is not able to provide reasonable excuses for not meeting the deadline for filing 1099, then they will have to face penalties.
Deadline for 1099-MISC
The 1099 deadline 2017 states, 1st February as the deadline for 1099-MISC. The 1099 deadline 2017 includes March 31 as the deadline for transferring them electronically. Penalties for a deadline varies. For instance, there are different penalties for failing to file at the correct time, an inclusion of incorrect information.
Posted by Admin on 23. September 2016 05:21
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 deductions, you have far more avenues to cream the opportunity. To get the most out of the tax benefits and deductions, you need to know about the self-employment taxes and the ways in which you can keep the money in your own pockets.
What is Freelance Employment?
For those people who fall into the category of freelance workers, life is magical, to say the least. They are their bosses and can work when they feel like. There is no restriction on them. But even they are subjected to some taxation. They too fall under the IRS self employment tax category, as they are earning something.
Useful Tips to Reducing the Taxes for Self-Employed People
If you are looking to know how to reduce self-employment taxes, then this is the article you need to refer to. If you know, the ways you can benefit a lot from the tax deductions for self employed people. The following are some tips, which will help you in saving on the taxes:
• Medical Insurance Concessions
You can deduct medical coverage premiums for yourself, your life partner, and your wards as conformity to wage. This incorporates premiums for long haul care protection. The arrangement does not should be in the business name – it's deductible regardless of the fact that it's in your name.
• Keeping it Simple
Unless you have to shape an organization or an enterprise for reasons unknown, stay with a Schedule C, Sole Proprietorship. It's the least complex approach to record, and there's nothing you need to disband that you precede towards something else. In case you're searching for legitimate assurance, get the protection of the law.
• Automated Recordkeeping
Little business record keeping doesn't need to be as hard as it used to be. Shoeboxes, brimming with folded receipts ought to be a relic of days gone by. Use individual fund programming that is synchronized to your ledgers. Programmed record keeping spares you time, as well as it's less inclined to failures.
• Itemized and business deductions
By taking trade reasoning rather than an organized concession, you diminish your balanced gross salary and your independent work charge. At whatever point conceivable, deduct a cost or a bit of a cost as an operational expense. This will help you in getting real self employed tax return benefits.
There are many other ways, which will ensure that your money stays in your pocket. Paying taxes in time is the duty of every honest citizen. One must not shy away from paying taxes but keeping a close watch at increasing savings is also important.