Articles and Tax Tips

In a stunning development the IRS is examining whether to increase mandatory E-filing by drastically lowering the threshold from the standard 250 Forms 1099-MISC in a given filing season. This week let's take examine what threshold the IRS is considering and what it could mean for your 1099 filing and compliance efforts.

More big changes in the law could be headed your way if you fail to file Form 1099's with the payee's correct name and TIN. That means you will need to be even more careful this upcoming filing season, as shown by the latest updates provided via this month's tax tip involving proposed penalty notice processing.

If you have glanced at the current poll you will see there is a raging debate about the nature of IRS requirements vis a vis the Form W-9 and the collection of the payee's name and TIN (tax payer identification number). This week let's take a deeper look at that issue and a new due diligence requirement that the IRS is currently mulling over.

Form 1099 compliance is a tricky game. Oftentimes winning that game comes down to knowing what the other side will do before they do it. To that end, this week examine some common issues IRS auditors focus upon when they examine your filed Forms 1099-MISC.

When your organization makes a payment of U.S. sourced income to a Non-Resident Alien (NRA) you likely have an NRA reporting or withholding responsibility. Fail to meet that responsibility and you can come under audit. Let's look at what your audit response should focus upon.

Picture this; you have sent your payee statements out and are preparing to file with the IRS when a vendor calls and insists his return is inaccurate and that you must correct it. Or, you have filed your returns and realize you have made some mistakes. What should you do? This week let's take a look at each of these situations.

Among your other information reporting compliance tasks we remind you of a new one. Please remember to count your employees.  This is an essential task that you must complete to file IRS Forms 1094 and 1095 each year, and as required by law.