Posts

Showing posts from March, 2017

Penalties Pop-Quiz

Image
How much do you know about penalties for 1099 forms? Test your knowledge on these true and false questions. If you're not in the mood, don't worry - the answer key is just below.

1. True or False: If George filed an incorrect form and the filing deadline has past, he should take no further action. Doing nothing is the best way to minimize penalties. 

2. True or False: The IRS considers most form errors to be "inconsequential." The important thing is filing a return. Whatever the error Andrea made, the IRS will most likely let her error slide. 

3. True or False: Elizabeth forgot about the new 1/31/2017 deadline for Box 7 1099-MISC forms. To escape penalties, she shouldn't file at all. 

How did you do? 

1. FALSE! Taking no action after filing an incorrect form could result in a $260 penalty per return.
Here it is, straight from the IRS: "If you do not file corrections and you do not meet any of the exceptions to the penalty... the penalty is $260 per information re…

Ready to File?

Image
We’ve got a little over a week left until 1099 forms are due. Those forms, Box 7 1099-MISC forms, and W-2 forms are available through Tax1099.com year-round.

We know what you’re thinking - Box 7 1099-MISC forms? Weren’t those due 1/31/2017? Yes; but, for those of you running behind on that filing, you can still submit those forms through Tax1099.com. As far as penalties go, the IRS prefers late filings to no filing at all - take a look at the penalty increases.
Are you ready to file?Do you know what type of form you need to file?
If not, check out thissummary of 1099 form types. 

Do you have the payer's information?
You'll need the payer's name, address, and phone number. The payer's federal employer identification number (FEIN) is also necessary for filing. The IRS requires the payer to identify either as a business or as an individual. If the payer is a business, you should report the payer's EIN. If the payer is an individual, you should report the payer's S…

1099 Corrections: Type I and Type II

Image
Not everyone has a knack for names and numbers. Unfortunately, the IRS is not very sympathetic when it comes to name-TIN mismatches.

The IRS can be unforgiving when it comes to returns filed with incorrect information. If you’ve been lying awake, waiting for the IRS to break down your door and give you 5-10 in a cold cell for reporting Box 4’s amount in Box 7...go through the corrected filing process. It's a good alternative to fleeing the country.

“I just got my 1099 form, and you spelled my name wrong. I’m Abbey, with an ‘ey.’” Some parents buy an extra vowel when naming their kids. Don’t hold it against your vendor -  you can smooth this over with the IRS pretty easily. Navigate to the Forms tab on the left hand side of your Tax1099.com screen. Click “New Form,” and select the same type of form that you filed for Abby (sans the “ey”). This new form will fix the name issue, so long as you check the “corrected” box at the top of the page. Fill in the info for the person you thou…