If you are in business and pay other people for services, Form 1099-MISC & Form 1096 are probably "tax" Forms you should be filing. Why? Just like any other "tax" form there are penalties for not filing them. If you like living on the edge, and sneering at the tax man, you don't have to read any further, this post is not for you. However if just seeing a letter from the IRS gives you the cold sweats, read on. Read more »
Expanded 1099-MISC Information Reporting Requirements Repealed
If you are involved in trade or business you should be cheering. On April 14, 2011 President Obama signed the Comprehensive 1099 Taxpayer Protection and Repayment of Exchange Subsidy Overpayments Act of 2011 into law. It repealed the expanded 1099 information reporting requirements that were included in the Patient Protection and Affordable Care Act. Read more »
Business Owners: How To Avoid Getting Audited
Tax Audit. Those two words strike fear in the hearts of many taxpayers. but as with many things an ounce of prevention is worth a pound of cure. Here are 7 tips to avoid getting audited. 1. Keep good records — include details for income, expenses, debts and deductions and [...] Read more »
Receiving Incorrect 1099s
The due date for 1099 reporting to the Federal government for the tax year 2009 just passed. If you have just noticed that a 1099 you have received doesn’t really belong to you or that it contains incorrect information, I wish you lots of luck in getting the issuer to [...] Read more »
Truncate Social Security Numbers on Information Returns
In an effort to combat identity theft, the IRS says that payers of interest, dividends, non employee compensation and the like may now truncate the Social Security Numbers to the last 4 digits on information returns given to the taxpayer. Of course the forms filed with the IRS must have [...] Read more »