Let’s look at how the IRS uses the information off the 1099s you file. We wrote about this in part 1 of “Dealing with Corrections,” and it’s a good encapsulation. When you file 1099s with the IRS, they put that information into their databases. In other writings, we delve into “how” they catalogue the information,…
Someone recently asked me why so many accountants and tax pros — CPAs, EAs, etc. — tell single-member LLCs to enter the LLC’s EIN on a W-9 instead of the owner’s Social Security Number. Now, you might read that paragraph and wonder, “What are we even talking about here?” So, let’s start by breaking it…
What do you do when you discover an error on a 1099? Or perhaps you discover that you should have sent a 1099 to someone, and now the deadline has passed? This article will help you with the process and alleviate some of your concerns. Types of Errors Errors can come in many different varieties….
Last week, we looked at the 2026 drafts of Forms 1099-NEC and 1099-MISC. These new boxes refer to qualifying tips and qualifying overtime. The One Big Beautiful Bill (OBBB), signed into law in 2025, creates a new deduction for these items. The deduction is taken on personal tax returns by the worker who received qualifying…
The IRS has released drafts of the 2026 versions of Form 1099-NEC and 1099-MISC. 1099-NEC Draft There are still seven boxes on this form, but box 1 has some changes: 1. Box 1a: nonemployee compensation. This is pay to your contractor; previously, this was simply “Box 1.” 2. Box 1b: cash tips. These will be…
