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 »
IRS One-Time Relief For Orgs About To Lose Tax-Exempt Status
Its not just people and businessmen who have problems getting their taxes done. Tax-exempt organizations, especially small ones that rely heavily on volunteers are very much at risk of forgeting to file their information returns. Sometimes the existing staff is completely unaware they have this obligation. On July 28, 2010 [...] Read more »
Restaurants, Form 8027 & Tips Reporting For Employers & Employees
An independent contractor suggested that although the IRS receives about 50,000 Form 8027’s in a given year it should be receiving around 3 times that amount. As a result, the IRS will focus exams on firms that failed to file form 8027. What is Form 8027? It’s the Employer’s Annual Information [...] 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 »