IRS Forms come with detailed instructions, but they can sometimes be hard to understand if you aren’t a tax expert. Let’s break down some of the general IRS Forms 1098 and 1099 instructions.
General Instructions for Information Returns
There are several information returns listed in this 31-page general instructions sheet from the IRS for the tax year 2022. And much like the Terms and Conditions pages, IRS instructions aren’t the most exciting or easy-to-read material.
They do make it as straightforward as possible, but tax codes are long and tedious, and difficult for veteran tax experts to understand – so the first thing you should remember about how to file IRS forms is that they change often. That’s why having a dedicated resource like eFile360 can be beneficial: you’ll always have a real person to reach out to with questions.
The 1098 and 1099 instructions also work for a number of other information returns, like 1096, 1097, 3921, 3922, 5498, and W-2G. You’ll find a table of contents that directs you to the latest changes, who, where, and what to file, and much more.
This instructions sheet is now labeled for “continuous use,” which means you can click this IRS link and it should reflect the latest changes for those information returns and the filing process to use.
There are a few big 1099 instructions to pay attention to when you start the filing process for these IRS forms.
The first thing to remember is that right now the electronic filing threshold is set at 250 forms. That means if you have 250 or more 1099s, 1098s, etc., to file for the tax year 2022, you must file them electronically.
But that’s only for right now. If new instructions or updated articles are shared by the IRS, that threshold could change, which may affect your filing process. It’s best to use electronic filing and organization like the services eFile360 offers, both for accuracy and in case the threshold changes in a way that impacts you or your business taxes.
Another important aspect of the 1099 instructions is the due date. For example, the deadline for providing your information returns to recipients for the tax year 2022 is February 15, 2023. Many of the 1099 forms are due to the recipient around the end of January, and due to the IRS at the end of February. Because these deadlines are often subject to change, we always recommend reaching out to a trusted tax expert or checking the IRS website to make sure you aren’t missing any important due dates.
Each form has the following Copies:
- Copy A – goes to the IRS and is filed with the rest f the taxpayer’s (your business’s) paperwork by the filing deadline
- Copy 1 – goes to the state tax department
- Copy B – for recipients to keep in their files
- Copy 2 – should be submitted with the recipient’s state income tax returns
- Copy C – is for the employer to keep for their record. eFile360 makes this easy by allowing you to organize and store all returns from past years in your account on our platform.
The TIN (Taxpayer Identification Number) is the fingerprint of each individual and business that files taxes with IRS forms. The process of TIN Matching ensures that the right forms, returns, and refunds are attributed to the correct recipient or tax filing entity.
eFile360 offers TIN checking as an add-on service. This service keeps you and your company from having to comb through – and pay for – error corrections and other difficult processes that come with submitting IRS forms with errors or missing TINs.
eFile360 Can Help You with Information Returns Filing, Corrections, & More
Are you unsure where to start when it comes to filing IRS forms and information returns? Are you responsible for filing your employer’s tax forms but need assistance or faster processes? eFile360 can help.
We support all 1099, 1098, W-2, and Affordable Care Act forms. We can help you create paper or electronic copies of your information returns for eligible recipients, and we’ll even carry out the e-delivery for you.
We can also help you take advantage of the Combined Federal and State Filing Program, which saves you time and money by allowing you to simultaneously submit information returns to federal and state government agencies.
And, when the inevitable error happens, eFile360 can jump in and help you navigate the difficult process of Corrections Filing, both for the current year as well as the previous three years.
Our eFile360 experts can also work with you to create custom outsourcing solutions for your business when you need additional guidance with e-filing.
For assistance with or questions about IRS Forms 1098 and 1099 instructions, sign up for a free eFile360 account today.