Category Archives: 1099

1099 Mistakes to Avoid

Everyone knows that filing late or not at all will result in penalties, but not everyone knows that errors are costly as well. Mistakes are often made on 1099 forms and each particular error can rack up the penalties costing your company more money.

1099 Mistake #1: Sending them too soon: Most people assume that sending your 1099’s ahead of time is a good thing, but this is far from the truth. Sending your 1099 to the IRS before the due date can cause massive issues for your employees as well as yourself. Should there need to be corrections made, the “see corrected” box is often missed by the IRS and they count each 1099 separately and will send tax due notices to your employees.

1099 Mistake #2: Errors in amounts – It’s extremely easy when running through a stack of 1099s to skip a zero or add one. In this instance it looks as though your employees made more or less money than they actually did, and they run the chance of incurring extra expenses if the error is not recognized.

1099 Mistake #3: Missing an employee – When you have hundreds of employees it’s easy to make mistakes. Sometimes employers miss an employee, thus landing the employee in hot water with the IRS and cause a massive paperwork snafu for you as well.

The best way to avoid these common pitfalls is to have a professional service prepare your forms for you. At Online File Taxes, we pride ourselves on diligent work at a respectable cost. Check out our website for more information.

Penalties for Failure to File 1099 and W-2 Forms

The January 31^st deadline has passed for filing 1099 and W-2 forms to your employees, but you’ve still got some that haven’t been filed. So what happens now?

If you’ve forgotten to file, or simply become too bogged down with work to get all of your forms filed, there are penalties you will have to deal with. Within 30 days of the deadline, penalties will run about $30 per form that you haven’t filed or have incorrectly filed, with a maximum penalty of $250, 000 for larger businesses. If you’re running a small business, your maximum yearly penalty will be $75,000.

After 30 days, the penalties for not filing become much more expensive. With this set of penalties, you have until August 1 to file, but you will be charged $60 per correct return. The maximum charge for a large business is $500,000 and a small business is $200,000.

Once the August 1 deadline has passed, you’re looking at quite a costly endeavor. With fines weighing in at $100 per form and potential maximum penalties at $1.5 million for large businesses, this is absolutely a time sensitive situation. Even small businesses may have to deal with a maximum fine of $500,000, which has the potential to do serious damage to your bottom line.

We can still help! Online File Taxes is set up to easily and efficiently process your 1099 and W-2 forms even after the deadline has passed. We can help you right your failure to file before it becomes too expensive to correct. Our system is simple and affordable, and we’ve got the ability to process hundreds of forms.

At Online File Taxes, we pride ourselves on being a one stop solution for your form filing needs. Stop by our website today and save yourself from harsh penalties!

Deadline for 1099s and W2s: January 31st

The deadline to file 1099s and W2s is January 31, which is rapidly approaching! If you’re still at your desk buried under a mass of paperwork, no worries! Online File Taxes can help you, and quickly!

We want to simplify the process of filing taxes and alleviate some of the stress associated with this time of year! With computer software there is still a massive amount of work to be done on your end, so let us help! We can process, file, print, and mail all of your data in three easy steps! We’re ready and waiting to handle hundreds of forms in a short period of time.

Failure to file these forms or filing late can be a costly mistake. If the IRS feels that you don’t have reasonable cause for filing late, penalties start to add up. Penalties for filing late can be as much as $30 per form within the first 30 days. Those types of fees can add up, and the same penalty goes for mistakes as well!

If you’re a CPA and you’re overwhelmed at this point, please contact us. We have a wonderful referral incentive for you and your clients. Your clients will get a 10% discount on their first order, and we will give that 10% right back to you! You can’t lose!

For more information on what we do, and how we work please check out our helpful video: http://bit.ly/L4xWIA

For assistance will all of your tax filing needs, visit us on our website!

Form 1099: What you need to know

A 1099 form is a tax form about which is little known by the average person. At OnlineFileTaxes.com, e-filing 1099 forms are our specialty. Often, professionals are burdened with having to file many different 1099 forms due to different forms of income over the tax year. With our reporting system, your 1099 forms can be automatically sent to the IRS for your convenience.

The 1099 has quite a few different purposes. The first purpose is that of the independent contractor, which we’ve explored the details of in a previous blog post. Those who are self-employed or freelance are given 1099 forms by employers that pay them over a certain amount of money per tax year.

The 1099-MISC is used to signify income from such business ventures as rental properties, winnings from gambling and other lottery type contests, and other miscellaneous income.

Another type of the 1099 is the 1099-INT which specializes in reporting income earned from interest on interest earning checking accounts, savings bonds that you’ve redeemed, or savings accounts.

The 1099-C is for reporting cancelled debt. For example, if you’ve settled a debt for far less than the amount owed, you must file this form to report your savings to the IRS.

The form 1099-S is used for reporting money that you’ve earned from the sale of real estate.

The 1099-DIV is given to investors whose stocks and or bonds have paid out dividends over the tax year.

Another type of this form is the 1099-B which is used to report income acquired from the sale of stocks, bonds, and mutual funds.

The 1099-R is used for reporting monetary gain by way of IRA distributions, 401K liquidations, or pension payments.

At OnlineFileTaxes.com we specialize in the e-filing of all the variations of 1099 forms. We also specialize in convenient e-filing of many other forms. For more information regarding our services provided, please visit our website.

Resources:
Online File Taxes
About.com