Question: We understand the IRS instructions for B-Notice mailings say: Your outside mailing envelope must be clearly marked “IMPORTANT TAX INFORMATION ENCLOSED” or “IMPORTANT TAX RETURN DOCUMENT ENCLOSED”. We also know this statement is required fo…
The IRS has released more frequently asked questions on the overtime deduction. Most of the new FAQs don’t apply to this audience, but there was one FAQ about 1099s: Q7. Under what circumstances is qualified overtime compensation reported on Form 1…
When you pay a settlement to another party, it is common for the settlement to include a portion that you must send to the other party’s attorney, as the attorney’s fee. When (if) you issue a 1099-MISC (box 3) to the other party, do you include the…
A key deadline is looming for corrections of 1099s to avoid penalty. That deadline is August 1. Let’s examine. Late-Filing Penalties The IRS can assess penalties against you for filing a 1099 with incorrect information on it. This is true even if …
Question: I wanted to confirm my understanding on who was responsible for issuing 1099’s/1042-S’s for vendors that are paid by an e-payables credit card. If I recall correctly, these should be issued by the bank issuing the card, as they are the ult…
The IRS has announced an enhancement to online Business Tax Accounts that allows businesses with such an account to download an EIN verification letter. The IRS says this letter can be used in place of Letter 147C. But can it be used in a B-Notice …
Another Draft W-9 Released in May — EIN Prohibition on Individuals is Gone The IRS in May released another draft of a new W-9, and this draft removed the prohibition on an individual/sole proprietor from using an EIN. In this latest draft, the onl…