Monthly Archives: October 2018

What To Do If You Miss The Deadline For Filing Your 1099s

What To Do If You Miss The Deadline For Filing Your 1099s

No one enjoys filing tax forms, but for a business owner, this task is a must. While procrastination can happen to the best of us, failing to file your 1099s in a timely manner can be a costly mistake. If you are facing down tax season and you aren’t sure what deadlines you need to meet or what happens if you miss them, we are here to help. Our goal is to make filing 1099s a simple and fast process so that you never have to face the dilemma of missed deadlines. Read on to learn more about what deadlines you need to meet and what will happen if you do not get your paperwork in on time.

January 31: An Important Date To Remember

One of the most important deadlines for you to keep in mind in regards to filing 1099s is January 31. This is the date by which most of your forms will be due. Not only is it vital that you have submitted and filed these forms with the IRS by January 31, but this will also help ensure that recipients receive their copies by the proper date as well.

While it may feel like an overwhelming task, procrastinating filing your 1099s is a disastrous choice with hefty consequences. Be sure that you clearly understand all relevant deadlines and that you start the process early. You can begin filling out all the information in December to prevent missed deadlines.

Reasons You Might Be Penalized

There are multiple reasons why you might wind up being penalized by the IRS in regards to your 1099s. If you miss the January deadline, you will be hit with fines for every late 1099 form. This can quickly add up if you have hundreds of 1099s to submit, which is why handling it in a timely manner is vital.

Another reason you might be penalized is for not providing adequate information to the IRS. Make sure that you fill out the forms completely and that you do not skip over any vital information. Missed information can also lead to hefty fines.

Finally, you can be penalized for filing 1099s with incorrect information. Any corrections you need to submit after the January deadline will cost you in fines and fees. Learn more about the specific penalties you might be subject to on our Penalties for 1099s page.

Reasonable Exceptions

While submitting your forms late, incomplete, or with incorrect information can all be the cause for major fines from the IRS, there are situations where you can get out of these fines. In the case where you had a viable reason for messing up the forms or submitting them late, you can get the fees waived. In order to do this, you will need to document your reasoning and submit it to the IRS. You will need to prove to the IRS that your mistake was due to a reasonable cause, not because of your own negligence. Unfortunately, forgetfulness or procrastination will not be enough cause for the fees to be waived. You will have to convince the IRS that you did your due diligence but that something outside of your control prevented you from submitting the correct information on time.

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Take Action Right Away

If you have missed the deadline for filing 1099s, the best thing you can do is take action right away. Submit any missed forms or corrected information immediately. You can then work on submitting information to the IRS in an attempt to prove that this was not due to your negligence. The longer you put off rectifying the situation, the more fines you will be penalized with.

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One of the best ways you can prevent the unfortunate mistake of forgetting to file 1099s or filling them out incorrectly is to utilize our simple platform at OnlineFileTaxes.com. We make filing 1099s simple, fast, and affordable. Avoid missing the deadline, sign up for free today.

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Guide For Choosing The Right Company For Online E-Filing

Guide For Choosing The Right Company For Online E-Filing

When it comes to online e-filing, not all options are the same. Choosing the right company to handle your online tax forms is a big decision. You want to ensure that everything is handled in a timely manner and that your forms are all filed properly with the IRS. In order to choose the right tax filing website, you will need to spend some time doing research and understanding what specifically you are looking for help with.

As you go about the process of finding the right company for online e-filing, we invite you to check out the following guide to choosing the ideal service for your needs.

Consider How Many Forms You Need to File

Not all businesses have the same needs when it comes to online tax forms. Perhaps you only need to file a handful of 1099s or maybe you are looking to file hundreds at a time. Not all online filing systems can handle large orders and some are specifically designed for massive corporations.

Ideally, it is wise to find a company that can handle any amount of tax forms, no matter how large or small. This will allow you to continue to utilize the same platform for years to come, even as your business grows. Sticking with one platform will allow you to spend less time in coming years searching for records and documentation.

Make Sure They Handle The Entire Process

Some companies will simply sell you packets of 1099s to download and fill out on your own. Others will allow you to prepare them online, but they can’t handle the actual filing process. Make sure you opt for a company that will cover the process from start to finish. For example, you should be able to fill out the forms online, e-file them with the IRS, as well as have copies sent out to the respective parties.

Choosing a company that handles every step of the process is convenient and time saving, as well as more cost effective than piecemealing it out. Look for a simple, one-stop platform.

Look For Affordable Pricing

Filing hundreds of 1099s can start to add up. Make sure that you look for a company that offers you affordable pricing options if you have numerous forms to file. The less money you can spend on this process the better for your business. Avoid platforms that are designed for massive corporations with higher costs. Many of these platforms have more bells and whistles than you actually need. Don’t waste your money on the unnecessary, instead, look for an affordable platform that meets your basic needs.

Find A Company Backed With Customer Support

Does the company you are considering offer any customer support? While ideally, everything will go smoothly and filing will be an error-free process, it is nice to know there is someone you can reach out to for help in case of an issue. Look for a tax filing service that is backed by customer support. Having support when you need it could mean the difference between missing an important deadline or getting your forms in on time.

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Be Sure They Are IRS Approved

Finally, make sure you opt for a company that is backed by the approval of the IRS. This will ensure that your forms are actually received by the IRS in a timely manner. An IRS approved e-file provider can quickly submit your forms, allowing you to rest easy with a greater peace of mind.

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Here at OnlineFileTaxes.com, we provide a simple, easy-to-use platform for online e-filing. If you are interested in finding a faster, more effective way to file 1099s, we invite you to sign up for free today. Whether you are filing a couple 1099s or hundreds, our affordable pricing and simple steps will make the entire process less stressful. Reach out today to learn more or visit our Frequently Asked Questions page for more information about our services.

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5 Important Facts To Know Before Filing Your 1099s

5 Important Facts To Know Before Filing Your 1099s

When it comes to filing 1099s, you probably don’t relish the process. However, filing all your 1099s will be critical for your business. Failing to do so can result in fines and a big headache. If you are in the throes of 1099s preparation, we are here to help. Our easy online platform makes filing 1099s much simpler than ever before.

As you get ready to work on this project, check out the following five important facts that will help you file your 1099s like a pro.

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#1: There Are Numerous Types Of 1099s

When referring to the 1099 form, there are actually a large variety of 1099s that might be in play. Each 1099 form is utilized for a specific situation or payout. For example, a contractor will receive a different 1099 from your business than a person who received dividends from your company. Understanding which form to fill out for each unique situation will go a long way in the successful filing of all your tax forms. Some of the common 1099s you might encounter include the following:

  • 1099-MISC: the most commonly used 1099, this form reports commission paid to a freelancer or contractor who is not your employee.
  • 1099-DIV: this tax form reports dividends and distributions paid to a person.
  • 1099-INT: utilize this form when you pay someone more than $600 in interest.
  • 1099-B: file this form to document proceeds from broker and barter exchange transactions.
  • 1099-C: in the case of a cancellation of debt equally more than $600, this form will be utilized.
  • 1099-R: fill out this form to report distributions of pensions, annuities, retirement plans, and other related distributions
  • 1099-S: this tax form will be used to report process from real estate transactions.

As you can see, there are a variety of 1099s that you might need to fill out during tax season. Be sure you are clear on exactly which 1099s you are required to file and ensure you handle the process in a timely manner.

#2: Deadlines Must Be Met

When it comes to filing 1099s, one of the most important factors is your timing. There are strict deadlines that you need to meet in order to avoid penalties. File all appropriate 1099s by January 31, ensuring you provide documentation to both the IRS and the party in question. If you fail to meet the deadlines outlined by the IRS, you can face severe penalties. The more 1099s you have to file, the costlier procrastination will become. Not only will the IRS penalize you for being late, but you can also cause frustration to those who need to receive their 1099s prior to filing their own taxes.

#3: Don’t Skip Any Forms

It can feel overwhelming when you stare down the pile of tax forms you need to fill out. Due to the variety of 1099s, it can be tempting to just skip ones you are uncertain about. However, not filing the right forms can be a costly mistake. The IRS requires extremely accurate reporting, which means that overdoing it in regards to forms is better than underdoing it. Make sure that if you are in doubt about what 1099s you are required to file you seek the help of an experienced professional. While filing 1099s might not be your favorite activity, it is critical that you don’t skip a single form.

#4: Multiple Parties Receive The 1099

Don’t forget, in order for the 1099 process to be complete, the party in question needs a copy and you need to officially file the 1099s with the IRS. Skipping either side of this task could result in penalties, not to mention could be extremely frustrating for contractors and freelancers who depend upon receiving 1099s in order to file their own taxes. Be sure that you handle both filing with the IRS and mailing out copies to the respective parties at the same time to guard against forgetfulness or procrastination.

#5: Filing Online Provides Faster Results

One important fact to keep in mind during the upcoming tax season is that filing 1099s online will save you a massive amount of time. Rather than purchasing 1099s, printing them off, filling them out, and manually filing them with the IRS, you can utilize online e-filing to make the process simple.

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For example, here at OnlineFileTaxes.com you can fill out anywhere from one single 1099 to hundreds through our platform. We make it simple to not only fill out all your 1099s in one place, but we also make filing a breeze. As an IRS approved e-file provider, we can automatically file your 1099s with the IRS as well as send out copies to the appropriate parties. This prevents you from remembering multiple steps and saves you copious amounts of time and money. File all your 1099s today in one easy place at OnlineFileTaxes.com

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