Articles and Tax Tips

THIS MONTH'S FEATURED SUBSCRIBER ARTICLE: This Year's Form 1099/1042-S Electronic Filing Tips

The following article lists an entire series of tips and reminders that we highly recommend everyone in your AP department reviews prior to sending off this year's electronically filed Forms 1099 and 1042/1042-S. In addition, if you see something you didn't know then do not hesitate to update your systems as soon as you get the chance.

 

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TAX TIP OF THE WEEK: Claimant's and When Not to Report In Box 3 of the Form 1099-MISC

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.

 

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TAX TIP OF THE WEEK: The Form 1099-MISC Box Used for Reporting Payments Made to Hotels

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….

 

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TAX TIP OF THE WEEK: The Form 1099-MISC's Box 1

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.

 

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THIS MONTH'S FEATURED SUBSCRIBER ARTICLE: Identifying Payments Reportable in Box 6 of the Form 1099-MISC

Among the many "grey areas" in reporting that can trip you up are those associated with the Form 1099-MISC. Even experienced information reporters often get caught up in debates regarding whether a payment gets reported in one box or another. Today, we will look at one such trouble area; box 6 - and we will answer what should go in box 6 and not, for example, box 7.

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TAX TIP OF THE WEEK: Some Reminders for Form 1042-S Reporting

Filing season is officially upon us. As such, over the coming weeks we will be taking a closer look at the primary information reporting forms so that you do not make an otherwise avoidable mistake. Given the ongoing IRS enforcement push regarding payments made to Non-Resident Aliens let us begin with the Form 1042-S.

 

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TAX TIP OF THE WEEK: Income Code 16 and Reporting Payments Made to Non-Resident Aliens for Personal Services

One of the trickier reporting situations you will confront are those involving services payments made to Non-Resident Aliens that can be classified under Income Code 16 (independent personal services). As such, let’s take a brief look at the law and help you understand which of your service providers can be categorized as Income Code 16 payees.

 

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TAX TIP OF THE WEEK: Reporting Legal Services/Settlements When Different Names are on the Check

This filing season and for payments involving legal services/settlements, there are a number of rules you will want to keep in mind regarding the differences in reporting when different names are on the check.

 

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TAX TIP OF THE WEEK: The 28% Backup Withholding Rate and Changes Made by The New "Fiscal Cliff" Law

The American Taxpayer Relief Act of 2012 was signed into law on January 2, 2013. As many of you know the backup withholding rate was scheduled to increase from 28% to 31% on Jan. 1, 2013 if Congress did not act to keep the income tax rates at the levels they have been since 2001. So what happened to the 28% rate? Here is what you need to know...

 

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THIS MONTH'S FEATURED SUBSCRIBER ARTICLE: Two Common Substitute Form 1099 Mistakes

Though the IRS has long allowed the creation of and filing of substitute forms 1099 there are a number of problem areas that can trap the unwary filer. As such, here are two problems posed by IRS guidance that can be less than a model of clarity; and what you should do in response.

 

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