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eFile360.com

Where e-filing information return forms comes full circle. We support 1099, 1098, W-2, and Affordable Care Act forms.

Archives for December 2019

How to deliver 1099 forms to recipients

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If you’re a larger business, the tax filing season can be a stressful time of year. You have many forms to deliver and need to make sure everything is completed accurately.  For companies that pay additional compensation apart from typical wages or salary payments, a 1099 form is required in order to report income to the IRS. Apart from employees and nonemployees, other company payments also require reporting specific details via 1099. Keep reading to learn more about the specific reporting requirements of the 1099-MISC. 1099-MISC Reporting Requirements  Box 1: Rental payments, including equipment, property, real estate, or vehicles might be reported here. Box 3: Awards and prizes not directly related to services, or other income payments, such as punitive damages. Box 6: Any payments made to doctors, suppliers, or providers of any medical services. This could include physical exams, lab work, hospital fees and charges, and other services.  Box 7: Professional fees for services provided by engineers, accountants, attorneys, and so on, or services such as repairs, landscaping, marketing, and so on. This includes nonemployee compensation, as well as any prizes awarded to those nonemployees in exchange for their services. Box 14: If you are involved in a legal settlement and have made payments to an attorney, the service fees are usually reported here. Ensure accuracy with bulk e-filing. Once you’ve figured out which 1099 forms you need to deliver and there is a large number of them, a bulk uploading service is your best bet. An efficient e-filing service will help you to ensure that your information is accurate, and help to prevent any penalties or inaccuracies. Your e-filing and mailing delivery options Since the IRS requires form recipients to consent to electronic delivery (and if no consent is given, they must receive a paper form), eFile360 offers this e-delivery service. When you select the e-delivery service option, recipients receive an …

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How to avoid penalties on 1099-MISC forms

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For every employee and nonemployee that an employer hires and pays compensation outside of the usual wage or salary, a 1099-MISC form must be completed. The 1099-MISC form reports income earned by independent contractors, self-employed, government payments, interest and dividends, debt cancellations, and retirement account withdrawals.  The IRS also requires nonprofit organizations, trusts, cooperatives, and federal, state, and local government agencies to report payments through 1099-MISC forms. Let’s walk through the important dates, penalties related to the 1099 form, and learn how you can file your 1099-MISC forms accurately and efficiently. One of the most basic penalties that can be easily avoided is submitting forms on time.  Deadlines to know for Copy A of Form 1099-MISC: January 31st of the following year Box 7 nonemployee compensation payments are reported (paper and electronic) The final day of February of the following year when not reporting non-employee compensation in Box 7 (when filing by paper)  March 31 if filing electronically when not reporting non-employee compensation in Box 7.  1099-MISC Penalties In recent years, penalties have increased across the board. If you’re hit with penalties for misfiling 1099 forms, you’ll have to resolve them quickly and efficiently. The later the returns are filed, the greater the fine grows. For small businesses grossing $5 million or less, the penalty for returns filed 31 days late is $110 per return. The max on these penalties taps out at $1,113,000 for small businesses if filed after August 1st.  For large businesses grossing more than $5 million, 31 days late on your returns will also get you a $110 late fee, with a max of penalties at $3,339,000 if filed after August 1st. IRS Code Section 6721 may apply if Information Returns are not filed by the due dates. These penalties can be imposed if you do the following: Fail to file a correct information return by the deadline …

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Understanding your e-filing delivery options

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The way you decide to utilize an E-Filing system will depend on your industry, type of department, and the size of your company. Even if specific tax forms must be mailed, there are still options that will help to reduce your global footprint and rely less on a paper-only system and its potential issues.  Aside from saving on time and resources, E-Filing can also include services such as TIN verification and correction filing. With E-Filing, you’ll also be less at risk for penalties from the IRS. Find out more about 1099 filing penalties here. eFile360 supports 1099, 1098, W-2, and Affordable Care Act forms. Depending on the filing needs of your department and company, you can choose the relevant add-on services to fulfill your needs. If you file with eFile360, you can choose from the following services: Mailing and E-filing E-Delivery Outsourcing TIN Checking Corrections Filing Combined Federal and State Filing Correction Filing Need a correction on a form from this year or the last three years? Don’t sweat it. eFile360 provides complete correction filing, whether you need it now or in the future. This service is offered for the same price as an original form filing. TIN Checking With our TIN Checking service, you’ll be helping yourself in preventing any penalties, tax withholdings, or B-Notices. Verifying the correct Tax ID of a recipient is crucial to submitting tax forms without issue.  As an add-on service, you’ll simply select the option for TIN Checking when you submit your forms. Prior to filing your forms, we check the tax IDs to verify that they match the correct ID and name. If there are any issues, we send the files back to you for additional verification. Once the IDs and names match, the forms are e-filed. This simple clarification can save loads of time on verification and eliminate the possibility of withholdings or other issues. E-Delivery Since the IRS requires that recipients receive either electronic or …

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Saving on administrative and IT costs with e-filing

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Even the best organizational filing system in the world can’t account for natural human mistakes. During tax season, small errors can cause the filing process to become much more complicated and expensive if important personal information doesn’t match up and delays in filing incur penalties from the IRS. An e-filing service can be just one small, but crucial, step in streamlining the complex tax season process. With e-filing, you’ll be able to bulk upload dozens of forms in a matter of minutes, saving time during year-end information return processing. Along with secure data storage, TIN checking, and other e-filing services, a cost-effective e-filing partner can be your best bet in ensuring a stress-free tax season. No need for new, pricey software You won’t need to train administrative employees on complicated new software or put your busy IT department to the task of onboarding a new software, saving you additional time. You’ll become far more efficient in your yearly filings and help to avoid any potential tax withholdings, B-Notices, or IRS penalties.  Worry less about form delivery eFile360 offers several delivery options: e-filing and print & mail, e-file only, and print & mail only. Check out our supported forms here. We provide secure online access or can mail print forms, or both. Depending on the chosen service and the way the recipient decides to access their form, we automatically mail a form if the recipient does not access their forms online.  Prevent against costly, time-consuming tax errors An e-filing service like eFile360 can also assist with any discrepancies on tax forms by using TIN Checking. In addition, a TIN checking Add-On Service can help you to match tax IDs to the correct name combinations.  All you’ll need to do is choose the TIN Checking option when you submit forms with us. We check for discrepancies and let you know if there are any. Otherwise, if all the information matches, we go ahead and e-file your forms. …

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E-Filing for entrepreneurs

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If you’re an entrepreneur, you might find yourself playing a guessing game when it’s time to file year-end taxes. How will you file? Which forms do you need? Where are you sending your tax information? Which regulations have changed, and what’s new this year? Do you have all your information, like TIN numbers, ready to go?  When you’re looking for convenient tax services, you want to be sure that you choose the ideal e-filing service to submit your information tax return forms on time and accurately. It’s important to choose a provider highly versed in 1099 and related tax forms, IRS deadlines, regulations, and all the important information you need to know during tax season. An e-filing service also keeps your information securely within your account, so you won’t need to input it every year.  Cost-effectiveness As a sole proprietor, you’re in charge of all the elements of your business. You decide your work hours, you pay for your own office and supplies, keep track of your deductions, and of course, you also file your taxes. You likely want to cut costs as well. Human error happens. Unfortunately, IRS regulations can mean simple human error has costly and time-consuming consequences. All important details must match up before forms are filed, like the Taxpayer Identification Number (TIN). However, TIN checking can help to ensure that recipient statements are mailed out accurately. You also likely have multiple vendors who need to be issued information return forms. With our Excel upload process, you’ll simply upload multiple forms rather than fill them out manually, which minimizes the risk of making small mistakes and helps to prevent delays.  Convenient delivery An e-filing service will mail and e-file forms where necessary, another cost and time-saving benefit. All you’ll need to do is check a couple of boxes while filling out your forms. Check out our supported forms here. You can file most 1099 forms up to January 31st at 5 PM with eFile360. …

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