In this week’s blog post and podcast, I mentioned how there is a change to the address fields on 1099s, and how I am not sure if this is just cosmetic or not. The issue I am watching with this is, it might affect file specifications in IRIS (I am not sure yet — IRS…
Podcast on this topic: https://podcasts.dinesenmedia.com/show/information-return-intelligence/substitute-forms-a-bigger-1099-deal-than-youd-think/ The IRS has released its annual revenue procedure relating to substitute forms — Revenue Procedure 2026-18. (IRS later released a slight correction to page layouts, in Notice 2026-14.) What is a Substitute Form? A substitute form means an information return (such as a 1099) that is printed on something other…
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 for some information reporting forms, and the second statement is used on our mailing envelopes. But – does this statement…
Listen to or watch the podcast on this topic: https://podcasts.dinesenmedia.com/show/information-return-intelligence-1/irs-releases-faqs-on-overtime-with-one-1099-item 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 1099-MISC or NEC instead of…
Listen to or watch the podcast on this topic: https://podcasts.dinesenmedia.com/show/information-return-intelligence-1/settlement-payments-attorney-fees-and-1099-reporting/ 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…
Listen to or watch the podcast on this subject: https://podcasts.dinesenmedia.com/show/information-return-intelligence-1/correction-deadline-approaching-to-avoid-penalties/ 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 you filed the…
Listen to or watch the associated podcast: https://podcasts.dinesenmedia.com/show/information-return-intelligence-1/ask-the-expert-volume-4/ 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 ultimate payor. Answer: You are…
Listen to or watch the associated podcast: https://podcasts.dinesenmedia.com/show/information-return-intelligence-1/new-online-ein-verification-and-second-b-notices-can-you-use-it/ 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 setting? I…
Listen to or watch the related podcast: https://podcasts.dinesenmedia.com/show/information-return-intelligence-1/second-quarter-form-1099-roundup/ 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 only thing listed under…
Watch or listen to the related podcast: https://podcasts.dinesenmedia.com/show/information-return-intelligence-1/form-1099-k-part-2-why-the-600-threshold-was-reversed-2/ In this part of our 1099-K series, I want to talk more about perspectives on 1099-K. Specifically, why the government tried to change the 1099-K threshold to $600, and why there was outcry about this. Unreported Income A survey by Avalara (https://newsroom.avalara.com/2025-01-30-Avalara-Survey-Shows-Gig-Economy-Workers-Caught-Off-Guard-by-Lower-1099-K-Reporting-Threshold) conducted when the threshold was…
