The to-Do list is necessary to minimize the risk of getting penalized. Because tax season is the most confusing part. Due to new tax rules and regulations, updates, and compliances, one may get confused when filing tax returns. Here are 5 IRS 1099 DIV Form To-do that a business owner/taxpayer must follow to avoid confusion and stress of “1099 Tax Season”.
So to avoid such problems, better to create a “to-do list” before the end of the current tax year.
Table of Contents
- 1. Get started early
- 2. Do an estimate withheld/paid foreign tax or federal income tax
- 3. Consider what New on Form 1099 DIV is
- 4. Try Filling up your Form 1099 DIV Yourself
- 5. Consider Filing 1099 DIV Online with an IRS authorized e-file provider
1. Get started early
It is important to get started early especially when the tax season is about to start. Yes, because IRS penalties are along with their ways. 1099 Tax season is more complicated because the IRS goes on implementing new rules and regulations every year. And this urgency “Get Started Early” applies to every business owner or tax practitioner who deals with 1099 income.
Also, getting started early doesn’t mean waiting until the calendar turns to the new tax year i.e., 2023. It also means creating a plan before the current tax year 2022 ends. This means you need to create a checklist of the 1099 DIV Form and all the documents related to the 1099 DIV Tax Form.
2. Do an estimate withheld/paid foreign tax or federal income tax
As per the IRS norms, Form 1099 DIV not only reports dividends & distributions made but also foreign tax withheld and federal tax withheld info. So, do an estimate for whom you have withheld and paid foreign taxes on dividends and other distributions on the stock. Also, for whom you have withheld federal income tax on dividends under the backup withholding rules. So, that you can avoid the risk of inaccurate Form 1099 DIV filing. Also, gathering info beforehand helps you for a successful Form 1099 DIV e-file.
3. Consider what New on Form 1099 DIV is
As discussed earlier, the IRS goes on implementing new tax form reporting rules in the middle of the tax year. So, business owners are responsible to get updates to the “IRS Form 1099 rules” and checking IRS websites frequently.
For the dividends and distributions made in 2022, here is what’s new on the 1099 DIV Form:
- New Box 11 added. Box 11 is used as the “FATCA filing requirement” checkbox.
- Along with adding box 11, the box numbers from 11 to 15 were re-numbered up to 16.
So, banks, or any financial institutions reporting dividends and distribution at the year-end need to follow the IRS rules and regulations.
4. Try Filling up your Form 1099 DIV Yourself
Generally, if you opt for a tax practitioner or an accountant to file the “1099 DIV Tax Form” it may end up paying more. So, instead of paying more, you can do it yourself by self-filing. Yes, by filing 1099 DIV online one can file bulk 1099 Forms in minutes. Also, you can avoid errors on Form 1099 DIV with instant audit checks online.
5. Consider Filing 1099 DIV Online with an IRS authorized e-file provider
Finally, consider filing Form 1099 DIV e-file with an IRS-approved 1099 e-file provider like Form 1099 Online. Yes, Form 1099 Online is an IRS-certified e-file provider and a trustworthy firm. Also, it provides IRS audit support where the errors are avoided and the tax forms are submitted to the IRS 100% accurately. Furthermore, you can also use our TIN matching software to check whether the recipient’s TIN matches with the IRS database or not. Moreover, we provide built-in security encrypted networks where your sensitive info is safe in the right hands.
Form1099Online is the leading 1099 e-file provider that has won millions of users’ trust in the most recent years. Sign up for free and start filing multiple 1099 Forms in bulk with a single e-file account. For more details contact us via phone: 1-316-869-0948. Or else, email your queries to Support@form1099online.com.