In an attempt to decrease the number of fraudulent individual tax returns, the IRS has decided to do away with automatic extensions for Forms 1099-MISC with NEC Reporting in Box 7.
Extensions may still be requested using Form 8809, but they will not be automatically granted and must fall within certain allowances such as first-year filing or catastrophic events. Continue reading IRS Eliminates Automatic Extensions for Forms 1099-MISC with NEC Reporting
The IRS updated Publication 1281, Backup Withholding for Missing and Incorrect Name/TIN(s), last month to reflect a key change as part of the Tax Cuts and Jobs Act (TCJA). Effective January 1, 2018, the backup withholding tax rate dropped from 28 to 24 percent.
Among other circumstances, backup withholding applies when a taxpayer fails to provide their correct taxpayer identification number (TIN) to a payer or when a taxpayer underreports interest or dividend income on their federal tax return. Continue reading IRS: Reduced Backup Withholding Rate Applies to Small Businesses
Before you begin preparing your Form 1099-MISC reporting, it is important that you know what information you need to gather. This step-by-step guide identifies 5 key topics that will help you correctly and timely file your Form 1099-MISC. Continue reading Preparing Form 1099-MISC: A Step-by-Step Guide for Tax Year 2018