Articles and Tax Tips

Regrettably it is that time of the year; when AP departments across the country face questions regarding when and how to correct previously filed Forms 1099. This week let's take a look at when you should be making corrections for Forms 1099 filed in years past.

Today the IRS is increasingly targeting for audit the provision of fringe benefits for workers. Thus, even as the popularity of providing fringe benefits rises there are a number of pitfalls you need to be aware of. As such, let's take a look at the basics of fringe benefits compliance.

Freight payments and whether they are reportable continue to cause confusion in AP departments across the country. Accordingly, in this week's tax tip let's take a look at when you should, or should not, Form 1099 report such payments. 

Your organization issues a settlement payment to the claimant's attorney. Of course, the attorney does not want to provide their TIN so that you can complete your reporting on the Form 1099-MISC's box 14. What to do? The answer is surprisingly simple but effective, and as it often always does - revolves around statutory law.

We have received a number of recent questions regarding under what circumstances there is required reporting on payments made for services performed by U.S. Corporations. As such, please note that U.S. corporations of any type are reported to on the Form 1099-MISC in the following circumstances:

Invariably your organization will be in a position where a legal dispute has arisen and then been settled. This leaves Accounts Payable determining where and how to report. Today we will look at that payment your organization makes to the actual claimant, and when you do not report the payment in Box 3 of the Form 1099-MISC.

For far too long information reporters have been debating where to report hotel payments on the Form 1099-MISC; in box 1 or in box 7? In reality there is only one box in which you should be reporting payments made to hotels and it is not what you may have thought it should be….

We continue here with our series of tax tips looking at the primary information reporting forms. This week we return to the Form 1099-MISC. In this case the Form's box 1 and what should or should not be reported as rent.