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…
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…
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…
Listen to or watch the related podcast: https://podcasts.dinesenmedia.com/show/information-return-intelligence-1/1099-k-part-1-understanding-the-rules-and-the-reporting-gap/ This article will attempt to cut through some of the confusion surrounding Form 1099-K. This form has been in the news since 2022, with the reporting threshold being a moving target ever since. And now, the One Big Beautiful Bill (OBBB) has re-set the threshold back to…
Watch or listen to the related podcast: https://podcasts.dinesenmedia.com/show/information-return-intelligence-1/the-kwong-case-a-big-tax-deal-but-what-about-information-returns/ A recent ruling by the US Court of Federal Claims could open the door to relief from some penalties and interest refunds incurred during COVID. You may or may not have heard of this case, and at any rate, the news articles on it have centered on…
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…
