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Form 1099-K, Part 3
Watch the companion podcast: This is the third and final installment in our 1099-K series. In prior parts, we touched on how, when paying expenses that could be subject to 1099-K reporting, you don’t issue a 1099. Usually we’re talking about contract labor/1099-NEC, but it could also be other types of payments. This requires tracking…
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FIRE, Extinguished
The IRS has announced the official end to the FIRE system — 3 pm Eastern Time on November 19. We knew this day was coming, but we didn’t know exactly “when.” Now, we do. Background The FIRE system — Filing Information Returns Electronically — started many years ago (40 years ago, according to this IRS…
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IRS Releases 2026 Substitute Forms Information
Podcast on this topic: 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 than…
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Ask the Experts, Volume 3
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…
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New IRS FAQs on Overtime Have One Mention of 1099s
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…
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Another Court Case Confirms: Attorney Fees are Included in Taxable Settlement
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…