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…
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 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…
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 “What’s New” is a new backup withholding exemption…
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…
