Additional menu

eFile360.com

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

Form 1096

I Filed Form 1099 or W-2 With Errors. Now What?

By

If you filed a Form 1099 or W-2 with errors, then it’s critical that you file a correction ASAP to avoid additional fines and other penalties from the IRS. Step 1: Recognize Your Mistakes The most common errors include the following: Filing the wrong form type Reporting the wrong amount Reporting the wrong TIN or not including one at all Using a form for the wrong tax year Not using the correct form from the IRS (you cannot download or copy it) Tip: If the error is less than $100 for income or less than $25 for withholding, then you do not need to file a correction.  Also, find out more about deadlines here. Step 2: Fix Your Errors If you filed the wrong form, either type or year, or the wrong amount, then you can easily file a correction form with the information you already have.  If you reported an incorrect TIN or forgot to include one at all, then you need to speak to your contractor or employee to receive the correct TIN. Once you do, update the form and file the correction. You should also update the TIN in their personnel file.  Tip: Use eFile360’s TIN Checking service to avoid this penalty.  If you made a different error and need assistance preparing the correction, we recommend seeking out an accountant. Our team can answer some of your questions, but we are not a team of tax advisors and cannot provide any tax advice.  Please note that filing a correction does not necessarily mean that you will not be penalized or fined by the IRS. Filing a correction may only lower the amount you are penalized, but it is worth it to do so, not only for financial reasons, but also because those forms affect your employees’ tax returns.  Step 3: File a Correction for Each Form with Errors Once you have the correct information for the 1099 or W-2 form, you are ready to file a correction. Efile360 offers this service. If you are filing via paper, you will also need to file Form 1096. If you are e-filing, you do not need to include …

Continue Reading about I Filed Form 1099 or W-2 With Errors. Now What? →

Form 1099-NEC Best Practices for CPAs

By

As a CPA, if you’re preparing Form 1099-NEC for your clients, then you need to know the latest best practices. Start preparing for tax year 2020 now with these tips. Review How Your Clients’ Income is Mapped With the return of Form 1099-NEC, you will need to pay close attention to how you map your clients’ income. You will need to adjust how you map their income and adjust your routine from previous years to split non-employee compensation and other miscellaneous payments.  Ideally, you will map out whether your current process for Form 1099-MISC is accurate, adjust it accordingly, and then split off the necessary variables for Form 1099-NEC. Accurately mapping your clients’ income ensures that you report the correct amounts on the right forms at the right time. Specific situations that you may want to pay close attention to include: Lawyer payments Other income Real estate payments, such as rent Be Aware of Penalty Increases Among the many changes that the return of Form 1099-NEC brings, the penalties are changing, too. In general, they continue to increase for late or inaccurate reporting. Find out more about 1099 penalties here. According to Moss Adams, “For 2019 filings, penalties are applied at $50 for information return reports filed after the deadline but within 30 days, and they increase to $110 for returns filed after 30 days beyond the deadline but before August 1, 2020. Information return reports filed incorrectly after August 1, 2020, or not at all, will have a penalty of $270 per form.” Encourage Payment and Withholding Tracking Whether you’re meeting with clients before tax year 2020 or not, it’s important to inform them that they need to separately track nonemployee compensation and other 1099 payments. The sooner you tell your clients this and show them how to do so, the easier the next tax season will be for you and your clients. Equally as important is to note the difference for state income and withholding as it …

Continue Reading about Form 1099-NEC Best Practices for CPAs →

10 benefits of e-filing 1099 forms

By

You can e-file many Information Return forms, but what are the benefits for e-filing 1099 forms specifically? Let's dive in. Buy a bundle of 1099 paper forms, fill them out by hand, stuff each one in an envelope, seal, add postage, place in the mailbox, and wait. Or fill out the forms digitally and we do the rest when you choose to e-file. E-filing 1099 and other Information Return forms has many benefits because of the e-filing process. Traditional filing means you need to do the entire process with paper forms and wait to hear from the IRS that your forms are accepted or you made a mistake. E-filing speeds up the process because the e-file provider completes half of the process for you and you receive a confirmation for your forms, so you can trust that the IRS will receive accurate forms in a timely manner.  Here are 10 benefits of e-filing 1099 forms: No printing No mailing Improved security  Save time  Save money Fewer mistakes No need to file summary forms like 1096 or W-3 You don’t need to know the current tax rules Reuse data year after year  Verify TIN numbers with TIN Checking  No printing If you choose traditional filing with paper forms and fill them out by hand, you will still need to make copies for your recipients. If you print over the forms, you will still use your printer on the paper forms and to make copies. If you choose to e-file, you don’t need to print anything. Simply save the forms in PDF format from your eFile360 account in a safe place and our team will print and mail paper copies (or e-deliver digital copies) to your recipients for you.  No mailing With traditional paper forms, you need to mail the completed forms to the IRS and copies to your recipients. With e-filing, your e-file provider does that for you. No trips to the post office. No need to purchase more stamps or fold a bunch of paper forms. Just one click to order and we’ll take care of the mailing and e-delivery.  Improved security  Printing and …

Continue Reading about 10 benefits of e-filing 1099 forms →