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Showing posts from January, 2018

Forms to Submit in Separate Batches

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We're a day out from the Jan. 31st deadline for 1099-MISC forms with a Box 7 amount. While we like to automatically schedule you a week of time after you submit your forms to make edits, that scheduled window shrinks as we get closer to the deadline. We adjust the default scheduled date so that you will be sure to meet the deadline.

Then why do some of your forms have a scheduled date after the 31st?

Good question, and a lot of you have asked it in our live chats. We want to clear up what's happening there.

We're separating your filing into two batches so that you have as much time as possible to make edits to your forms before they are submitted to the IRS. Sending in a "mixed submission" would limit your window for edits on non-Box 7 forms. By bumping your non-Box 7 forms into another submission, we extend your window for edits.

This becomes increasingly important after the Jan. 31st deadline. After the deadline, separating the forms into batches becomes a com…

The Shutdown & The IRS

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After the government shutdown this weekend, many had questions about how the IRS would be affected. The shutdown was still in effect yesterday, but was lifted last night with President Trump reinstating government funds until the 8th of February. With a little over a week before the filing deadline for 1099-MISC forms with a Box 7 amount, here's what you need to know about how your filing might have been affected if the shutdown had continued:
Real-time TIN matching: In a shutdown, the government labels TIN matching "non-essential." This means that TIN matching results will be delayed. Tax1099 typically returns TIN matching results to your account within 48 hours, even when the IRS' system is functioning under high traffic. TIN matching is an important way to check vendor information against the IRS database, and is one of the primary ways to avoid penalties for filing incorrect vendor information. Processing a TIN match often qualifies as a "good faith" ef…

Classifying Employees vs. Contractors

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A recent story in the Wall Street Journal highlighted a trucking company facing massive penalties for misclassifying workers. Many of these workers were classified as independent contractors, when they were actually employees. The incorrect classification allowed the trucking company to avoid paying employee benefits and filing W-2's for employees. This is a fairly serious issue - the penalties could reach $2,500 per violation. For more on that story, visit the Wall Street Journal

Investigations continue to determine if this misclassification was intentional. We’d like to take a moment to review the differences between employees and contractors, to help ensure you’re filing correctly. 

So, what makes a worker an employee vs. a contractor? 

An employee has an ongoing relationship and agreement with the employer. The employer decides the when, where, and how of the work. The employer provides equipment, materials, and tools. eFile the employee's W-2 through Tax1099. 

The contracto…

ACA Penalties Intensify

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You'll remember that voluntary filing of ACA forms 1094 and 1095 began in 2015. The IRS offered voluntary reporting to help filers adjust to the reporting requirements. Many filers were anxious about gathering information. After a couple years of lax penalties, the IRS is strengthening penalties and doing away with broad-sweeping exceptions to the filing requirements.

The IRS applied "good faith" exceptions to filing requirements for the 2015 and 2016 filings.

According to IRS Notice 2018-06, this transition relief will also apply to 1094 and 1095 forms that were filed in 2017. Here's the catch: the penalty relief is only available to filers who submitted the information on time. Those who filed late, or who failed to furnish recipient information, will not receive an exception to the penalties.

The IRS has already begun sending penalty letters to employers that owe shared responsibility payments. Recipients must respond to Letter 226J within 30 days. Though the pen…

Now Available: Forms 943 and 941X

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Over the course of the summer, our development team worked to update our platform with your suggestions. One suggestion we heard was to include forms 943 and 941X in our collection. We're happy to announce that those forms will be available through Tax1099 for the 2017 filing season.

FORM 943
File form 943 if the wages you paid to a farm worker were subject to:
Social securityMedicare taxesFederal income tax withholding In Tax1099, you can access this form from Forms > New Form.

FORM 941X
File form 941X if you need to make a correction to your form 941.
You should have filed a form 941 to report taxes withheld from employees' paychecks. This includes social security tax, Medicare tax, and income taxes. The form is also used to pay the employer's portion of the social security or Medicare tax.

Is form 941X eFiled? 
No, the form is not sent to the IRS by eFile. The IRS does not accept form 941X by eFile.

How is form 941X filed? 
The IRS accepts form 941X by mail.

How will Tax1…

Best Practice for Creating Passwords

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You're ready to begin your eFiling process for the 2017 filing season. You return to Tax1099 for the first time in a year. You stare at a blinking cursor in the password box, sigh, and finally select "Reset Password." New year, new password. You've likely heard these pieces of advice regarding passwords:
Create a complicated password. Pack it with special characters, and a mix of numbers and letters.Don't use a password you use for another account; each password should be unique.Change your password regularly. These rules lead to passwords so complicated, and so frequently changed, that users have a hard time remembering them. Changing a password again leads to the same issue, and so the cycle continues. Every time a password is changed, it is easier to forget, so users begin to store passwords. Sticky notes and note pads "hidden" under keyboards begin to crop up, which become a security issue.

Passwords following these rules cause even more problems fo…