Beginning 2020, IRS has a new form, 1099-NEC , for reporting payments to independent contractors . An independent contractor is anyone whom you have paid to perform services for your business without their being on your payroll. The deadline for filing with the IRS and providing a copy to the contractor is generally January 31 (though this year we get one additional day because of the weekend), and IRS can hit you penalties if you’re late. Form 1099-MISC still exists and you may also need to file those if you made other types of reportable payments, including attorneys, rent on business property, and certain other payments. The 1099-MISC deadline remains March 1 (March 31 if filing electronically). Prior to the end of the year, you should: Make sure you have a W-9 form from any potential person or company who falls into either category (independent contractor or other payee). Plan to have your bookkeeping updated by early January so the forms can be filed before the deadline. ...
Scammers have taken advantage of the huge number of new unemployment claims to slip in fraudulent claims. Taxpayers often have no warning their identity has been stolen until they receive a tax form from the unemployment office. New York residents may be extra vulnerable because the state doesn’t mail the 1099-G tax forms. Instead, unemployment recipients must log into their unemployment account to retrieve the form electronically. Of course, taxpayers who haven’t claimed unemployment won’t know that an account was set up in their name by the scammers, and would not know the password to access it. If you receive a 1099-G for benefits you did not receive or, after filing your return, an IRS letter for unreported benefits should contact the state agency to get a corrected 1099-G and omit any income you did not received when filing your tax return. You don’t need to wait to receive the corrected form before filing. Read more on irs.gov .
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