November 29, 2018

1099 Form filing

 

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Not long after Santa Claus comes ho-ho-ho’ing down the chimney comes something not so jolly: 1099 form filing. You’ve got a list of payers and vendors. We hope you’re checking it twice! There’s a lot to think about and to take care of when it comes to filing 1099 forms. To make matters more complicated, compliance regulations can change from year to year. It’s a lot to keep up with. That’s one reason why it’s important to partner with an eFile provider, a provider that makes keeping up with compliance regulations a top priority.

Tax1099, powered by Zenwork, will offer a joint webinar with the Latino Tax Professional Association. This session will be a “1099 eFiling Overview.” The session will be available for 1.0 hour of free CPE credit. In the session, Zenwork will provide filers with information on preparing and submitting 1099 forms. In particular, Zenwork will discuss the IRS form 1099-MISC. With over 75K users, and 10+ years of eFiling experience, Tax1099 is well-equipped to share information on this process.

WHAT DO FILERS NEED TO KNOW FOR TAX YEAR 2018?

Compliance changes on the federal level.

It not news to most seasoned filers that the IRS has been trying to tighten regulations and eliminate the gap between business-side and individual-side reporting. In an effort to decrease fraudulent tax return dispersals, the IRS has even changed the submission deadline on a form. In tax year 2016, the IRS bumped the deadline for box 7 non-employee compensation on 1099-MISC forms up from March 31st to January 31st.

In years past, filers could skirt around this new deadline with automatic extension form 8809. This form allows a 30-day extension on a filing, giving 1099-MISC box 7 forms a deadline in early March. This year, the IRS has phased out this automatic extension for 1099-MISC box 7 forms. If you have been relying on this safety net in the past, be aware that it is no longer available to you.

Of course, in typical IRS fashion, there are exceptions: if you have been the victim of a disaster, or if the person responsible for filing has unexpectedly become unable to complete the filing process, you may be eligible for a manual 8809 extension.

For more on the elimination of the automatic extension usage for box 7 NEC 1099-MISC forms, and for more federal compliance changes, register for a webinar with Tax1099, powered by Zenwork.

Compliance changes on the state level.

For a few years now, states have been trending toward adoption of the Combined Federal State Filing Program. Through this program, the participating state receives relevant information from the IRS. The IRS sorts through the information eFiled. Then, the IRS forwards the state their information. This allows filers to submit a single filing to the IRS, rather than submitting to the IRS, and to the state via eFile, paper filing, or magnetic media.

A great idea, in concept, but it’s not working out exactly how the states would have wanted. It can be mid-way through the year before the state gets their information from the IRS. This gap is causing the same type of issue the IRS seeks to avoid with the elimination of the 1099-MISC box 7 automatic extension.

So, what can you expect from state filing? First, if you’ve gotten used to a really simple state filing process, don’t count on it this year. There’s a good chance that your state filing requirements have changed. Second, and looking to the future, expect to see more states dropping out of the CFSFP if the IRS doesn’t streamline the information-sharing process.

For more on state filing, and state filing compliance changes, register for a webinar with Tax1099, powered by Zenwork.

 

Along with information about federal and state compliance changes, Zenwork will talk about best practice for filing corrected forms and for eDelivery of forms to vendors. You’ll also get a tour of the Tax1099 eFiling platform, and you’ll have the opportunity to ask questions about the 1099 eFiling process. Register for the webinar today!

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