How to Deal with Fraudulent or Incorrect 1099 Tax Return?

Did you receive an incorrect Form 1099? Have you requested the payer to issue a correct 1099 Form? If the payer fails to do so, then the IRS may consider that you’re reporting incorrect income on a tax return. This may result in facing penalties. Getting confused? Don’t worry! We will let you know how to deal with a fraudulent or incorrect 1099 Form. Furthermore, we provide you with information about why 1099s called information returns. Additionally, you’ll get to know what to do if you didn’t receive the tax form. Table of Contents Why is Form 1099 called “Information …

How to Deal with Fraudulent or Incorrect 1099 Tax Return? Read More »

Why Online Business Owners Need a 1099 K?

Selling products online and accepting payment card transactions? Then you may receive 1099 K by the year-end. As per the IRS guidelines, Form 1099 K a familiarly new tax form. Third-party credit card processors use this tax form to report the payment card transactions to the IRS. Getting confused? Don’t worry! We will let you know why the online business owners need a 1099 K Tax Return. We provide detailed information about the circumstances that require the tax form. You’ll also get to know about the history of bringing this tax return into the 1099 series. Table of Contents When …

Why Online Business Owners Need a 1099 K? Read More »

Top 5 things to know about a 1099 Employee?

Did you hire an individual to perform work in the course of your business? Does the individual perform work full-time or on a contract basis? As per the IRS, a business can hire an individual in two different ways i.e., employee and contractor. Employers manage the work performed by the employee with a costly benefits package. 1099 employee 1099 Form 2021 work on a project basis and receive payments for the work performed without the deductions and benefits. Table of Contents Who Is a 1099 Employee? What Are the Most Common Types of 1099 Contractors? Benefits of Hiring a 1099 …

Top 5 things to know about a 1099 Employee? Read More »

What Do You Need to Know Before E-Filing Form 1099 NEC?

Did you hire an individual to work as a freelancer? Then you need to issue Form 1099 NEC to the individual and the IRS by the year-end. From the past few years, payments made to non0employees reported on 1099 MISC Box 7. But the IRS changed the reporting process from 1099 MISC Box 7 to a new 1099 NEC Tax Form. Read the entire article to know more about E-filing Form 1099 NEC. Table of Contents What Type of Income Do You Report on a 1099 NEC Tax Form? When Do You Need to Issue a Form 1099 NEC to …

What Do You Need to Know Before E-Filing Form 1099 NEC? Read More »

What to Do if the IRS Sends a 1099 Correction Notice?

Did you receive an unexpected notice from the IRS? Does the notice indicate to start backup withholding taxes? The IRS sends a 1099 correction notice to the payers to correct the error and to start back up withholding taxes from the payee. Getting confused? Don’t worry! We will let you know what to do if the IRS sends a 1099 Form correction notice. We will explain the notice you received in detail by providing simple steps you’re responsible for after receiving a correction notice. Table of Contents What are the reasons behind the 1099 Correction Notice? 1099 Correction B notice …

What to Do if the IRS Sends a 1099 Correction Notice? Read More »

How to deal with errors on Form 1099 NEC?

How to deal with errors on Form 1099 NEC? Does the IRS reject your 1099 NEC Form? Have you e-file or paper file Form 1099 NEC? If you have an e-file information return, then it is easy to correct errors and transmit them to the IRS in minutes. Getting tensed? Don’t worry! You can correct 1099 information returns online even if you have submitted tax returns through paper. We will let you know how to deal with errors on Form 1099 NEC. Moreover, you can find out the reasons behind the rejections of 1099 Tax Forms. Finally, correct Form 1099 …

How to deal with errors on Form 1099 NEC? Read More »

5 Common mistakes to avoid Form 1099 rejection

5 Common mistakes to avoid Form 1099 rejection: Did you get a notice from the IRS about Form 1099 rejection? Then you need to correct the error and send the corrected information return to the IRS and the recipient. The IRS uses 1099 Tax Form information to match the contractor tax return form. Getting tensed? Don’t worry! We will let you know the most common mistakes to avoid Form 1099 rejections. Additionally, we provide you with information to avoid IRS Form 1099 penalties. Table of Contents Misunderstanding 1099 Form Reporting incorrect amount is another reason for Form 1099 rejection Misclassifying …

5 Common mistakes to avoid Form 1099 rejection Read More »

Federal 1099 Tax Form for international contractors

Federal 1099 Tax Form for international contractors: Did you hire a contractor? Does he/she perform work for your business? Is the contractor foreign-based? Report the income paid other than salaries or wages to the IRS timely whether you’re operating business domestically or internationally. To succeed, you require a quality team to get the work done. Therefore, paying a 1099 independent contractor risky when you operate a business in foreign markets. Getting confused? Doesn’t know about international contractors? Don’t worry! We will let you know about the requirements for hiring a foreign worker. Moreover, you will get to know the benefits …

Federal 1099 Tax Form for international contractors Read More »

Important 1099 Tax Forms for Mutual Funds

Important 1099 Tax Forms for Mutual Funds: Do you know how distributions from mutual funds occur? Usually, distributions from mutual funds occur for several reasons. Moreover, such distributions are subject to different tax rates. As we know, many mutual funds bundle most of the payouts into a single at the end of each year. Getting confused? Don’t worry! We will let you know about the important 1099 tax forms that the mutual funds use. Furthermore, it’s your responsibility to report the transaction from a mutual fund on the tax return. we have provided a clear view about distribution and taxes, …

Important 1099 Tax Forms for Mutual Funds Read More »

Difference between a 1099 and W-2 Form

Difference between a 1099 and W-2 Form: Have hired an individual to perform work? Does the individual work as a part of your business? As per the IRS rules, if you hire an individual who is not a part of your business but performs work are “Independent contractors”. Getting confused? Which Form 1099 or W-2 to issue? Don’t worry! We provide you with clear information about the 1099 and W-2 Forms. Furthermore, We’ll let you know the importance of identifying a 1099 worker and a W-2 employee. We provide step-by-step guidance in determining an individual as a contractor and an …

Difference between a 1099 and W-2 Form Read More »