Tag Archives: 1098-T

Online File Taxes Launches New Site

online tax servicesJust in time for the tax season Online File Taxes launches a new user friendly website!

Some new features include:

  • Corresponding buttons to each of the forms we process to make information gathering and filing a snap!
  • Testimonials from our clients so you know what to expect from Online File Taxes!online tax services
  • A quick access “Start Filing” section for your convenience.
  • A handy deadline calendar to keep you posted on upcoming tax deadlines.
  • An FAQ section for helpful advice and answers to your questions
  • Our pricing schedule for added simplicity

Easy filing is just around the corner with our new site!  Stop by today and check it out!

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3 Year-End Tax Tips

2013 taxes file onlineNow’s the time for business owners to take stock in preparation for the end of the 2013 tax season. We want to make sure your I’s are dotted and T’s are crossed, so we’ve compiled a list of the top three tips for your reference.

Confirm your employees W-2 and 1099 information.  When it comes to the IRS, mistakes are costly and can add unnecessary red tape to the process.   Also notify your tax preparation specialist as soon as possible so they can update the information as well.

Know the difference between employees and independent contractors.  The difference is crucial in terms of what your responsibilities are.  For more information on the topic, please reference our blog http://bit.ly/18rOYbW.

Know your deadlines.  Know when your forms are due to the IRS and know when the forms are due to your employees.  Otherwise, there could be penalties accrued for late filing.  IRS penalties can be costly, so stay informed of new rules and deadlines.

For assistance with your W-2 and 1099 forms, we are here to provide seamless and efficient filing.  Check out our website for more information.

Resources:

http://entrepreneurs.about.com/od/beyondstartup/a/Avoiding-Mistakes-With-Your-Small-Businesss-Tax-Planning.htm

http://www.adp.com/media/press-releases/2012-press-releases/adp-offers-year-end-payroll-tax-tips-to-small-business-owners-and-their.aspx

http://ais-ss.usc.edu/empldoc/faq/faq9.html

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Tax Preparation Software: What You Need To Know

Every year we see hundreds of commercials promising simple tax preparation.  Yet, many tax softwaresay the process has not been simplified. It’s still complicated and time consuming.

With the looming January 31 deadline for filing W-2s and 1099s, tax preparation software is in review by professionals to evaluate ease of use.  According to tax preparation professionals, the best programs feature the ability to mail copies of forms straight to employees. They also tout the benefits of everyone’s main concern – accuracy.

E-filing is considered to be far more accurate than the standard paper filing option.  As a business owner, you still have the option to file W-2s and 1099s by hand, but the potential for mistakes increases greatly.  Reviewers of 2012 tax software found it rife with problems that caused for a great deal of hassle in software preparation specialists systems.  The software also did not allow for business owners to file prior to January 30, causing great inconvenience to businesses across the country.

One system that allows for ease of use is the system offered at OnlineFileTaxes.com.  Business owners can effortlessly file thousands of forms with no complications and can eliminate the need to purchase complicated or expensive tax preparation software.

This service also features a print and mail option.  We offer the most economical and efficient way to e-file your tax forms.  Check out our website for more details.

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Tax Season Delayed

Government shutdownOur government recently made history with the first government shut down in over a decade and a half. The shutdown cost close to two billion dollars over sixteen days, due to the amount of workers that were temporarily out of work.  Sixteen days may not seem like a great deal of time to those not employed by the government, but it certainly gummed up the works for the tax system.  The tax season is going to be delayed by a little over two weeks in 2014.

While two weeks sounds like next to nothing, it certainly isn’t.  So what does the delay mean for you the business owner?  Because of delays in their day to day operations during the shutdown, they feel the two week extension is necessary to successfully get their programs up to date.  The IRS will not begin accepting tax returns until January 28, 2014 at the very earliest.

Does this mean you have two extra weeks to file your taxes?  Certainly not, the delay is solely for the benefit of the IRS, not the taxpayer.  The IRS states that they are working to shorten this delay as quickly as possible but details the process as necessary.  American taxpayers will be notified of all changes in this delay by December, at the traditional start of the tax season.

Delay or no delay, processing your tax forms in a timely fashion in necessary.  If you’ve been avoiding that stack of forms on your desk in hopes that the tax season stoppage would allow you some extra time, don’t wait any longer.  We are here to help with a team, ready to e-file your 1099, 1098 and W-2 forms efficiently and accurately.  Contact us today to get started!

Sources:

http://www.irs.gov/uac/Newsroom/2014-Tax-Season-to-Start-Later-Following-Government-Closure;-IRS-Sees-Heavy-Demand-As-Operations-Resume

http://www.convey.com/1099-news-tax-blog/irs-regulation-updates/tax-season-will-be-delayed-in-2014/#axzz2k0nkzdiT

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Tax Penalties for Not Filing

Online File TaxesWith everything you encounter in life, there are rewards if you complete a task and penalties if you don’t.  The IRS is no exception.  Failure to file or filing your 1099 forms and W-2s will cost you and the punishment is pretty serious.

Filing a W-2 a day late probably won’t cost you all that much, but file it thirty days late and you may be looking at a fine of up to $30 per W-2.  This fine is only counting on the W-2 being correct when it is filed too.  If you file your W-2s between 30 days after the due date and August 1, the rate of penalty increases to $60 per W-2.  Anything filed after August 1st, and you’re looking at $100 per W-2.  The maximum penalties for these items range from $250, 000 to $1,500, 000 per year.  Can your business afford that?

Filing 1099 forms is no exception.  There are stiff punishments doled out for those failing to file these forms as well.  With these, you’re looking at a $50 fine per unfiled form.  Should the IRS believe you haven’t filed intentionally?  Well then the rate increases to $100 per form or 10 per cent of the tax amount that should have been filed.

Essentially, penalties will happen both for late filing and failure to file at all.  The IRS allows extensions to be granted for those having issues meeting deadlines, so they are hesitant to accept excuses from businesses that are failing to file.

Fortunately, we’re here to help!  We take the hassle out of filing your tax forms so you don’t have to worry about extensions or penalties.  We have the ability to e-file large numbers of W-2s and 1099s thus avoiding any punishments from the IRS.  Stop by our website and check out the numerous services we offer to help you prevent penalties.

Sources:

http://www.irs.gov/instructions/iw2w3/ch01.html

http://smallbusiness.chron.com/penalties-company-face-not-filing-1099s-subcontractors-31665.html

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Online File Taxes

Online File TaxesTax forms and filing are a necessity, there’s no way around it.  In the past, you may have seen an accountant or even tried to file the forms yourself.  You are likely well aware of the hassle and hardship of trying to file the forms on your own.  There’s an easier way!

We offer the ability to e-file not one, but hundreds of forms with ease.  We also simplify the process by eliminating the need to purchase expensive software and upgrades.  We allow you to import your information so you can avoid the tedious process of filling out extensive forms by hand.  Another simple convenience offered by Online File Taxes is that the forms you file will automatically be e-filed with the IRS and your 1099 forms will be mailed to the recipients.

At Online File Taxes, we provide our customers with online access to your account as well, so filing and updating your information is a snap.  Through our account management system, you not only have the ability to keep your personal information current, but you can also manage your recipients and view files you’ve already submitted.

We can provide filing services for dozens of different IRS forms, for your added convenience.  Online File Taxes can file any manner of 1099 forms, 1098’s, and W-2 forms.  We have the ability to ensure all paperwork is properly filed and sent off immediately to the IRS.  All of our programs are made for simple, secure, and efficient use.

Our pricing structure makes for affordable filing, but in order to maximize discounts, be sure to file all of your forms at the same time.  We can process over a thousand forms at any one time to allow for larger businesses to have maximum convenience and ease.

During tax time, please think of us for all of your filing needs.  We can simplify the process and make your business life easier!

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E-File Your W-2

w-2 formsIf you’re over the age of 16 and working, then you most likely already know what a W-2 is, but do you know all of the rules and regulations behind them?  Do you know what’s new as of 2013? As an employer, are you aware of the deadlines for filing and getting W-2’s to your employees?  No worries, we can help simplify the process!

If you’re an employer, you owe a W-2 to any employee who earned over $600 while working for you.  As an employer it is recommended that you e-file your W-2s for more accurate and faster information.  If you’ve got more than 150 employees that require a W-2 from your company, you are required to e-file.  We can help!

As an employer, it is also important that you know the changes made to the W-2 as of January 2013.  There was a limit placed on the amount of flex spending contributions that an employee could make pre-tax.  There was also an increase in the Medicare tax withholding amount for any employee that makes in excess of $200K during the year.

The IRS has strict penalties for employers that do not meet the deadline for filing W-2s or file incorrect W-2s.  Penalties start at $30 per W-2 for large businesses.  Fines are applicable for small businesses as well, but can be avoided in both cases by filing for a 30 day extension.

If you’re an employee, your employer must have a copy of your W-2 mailed to you by the end of January for your tax filing purposes.  Should your employer fail to meet this deadline, the IRS penalizes your employer for their neglect.

As always, we are here to help.  Don’t let the hassle of late filing effect your bottom line.  Be sure to E-file your W-2 with us and allow us to e-file the federal copy, mail the recipient copy, and create a PDF form of the payer copy!

Sources:

http://www.onlinefiletaxes.com/

http://www.irs.gov/pub/irs-pdf/iw2w3.pdf

http://smallbusiness.chron.com/businesses-fined-not-mailing-w2s-26359.html

http://taxes.about.com/od/formw2/a/IRSFormW2.htm

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Do you need to file a 1098?

File taxes onlineEvery apartment dweller has heard they are wasting their money paying rent, and that the benefits of home ownership extend far beyond the investment potential.  Owning your own home also has tax benefits and ramifications.  Be well informed about your requirements as a home owner before jumping in with both feet!

A 1098 is a form to report interest paid to a lender throughout the year.  The items listed on this form include interest paid on your mortgage, points paid at the time of the purchase, some mortgage insurance items, and any reimbursements for overpayment you may have received.

This form must be filed for any interest over $600, and it must be filed whether or not interest can be used as a deduction.  If multiple mortgages secure a property, a different form must be filed for each mortgage.  As always, there will penalties for not filing these forms.  All interest paid to a lender via a borrower must be filed by the normal tax deadlines.  The only exceptions to filing the 1098 come when the interest is paid from a corporation, trust, or an estate.

Education is paramount for success in the world today.  Fret not, your tuition payments are not all in vain.  Another common form is the 1098-T.  The 1098-T is used to report tuition paid to a college, university, or vocational school by a student.  The student may then use the 1098-T to report tuition paid for possible deductions and educational tax credits.

Any eligible educational institution must file a 1098-T for each student from whom they receive tuition.  The form need not be filed for non-credit courses, scholarship students, or non-resident students.  This form must also be filed by the standard IRS deadlines or face penalties.

These two forms and more can be e-filed at your convenience by Online File Taxes!  Visit our website for more information about the many other forms we can easily and quickly e-file for you!

Sources:
http://www.irs.gov/pub/irs-pdf/i1098.pdf
http://www.irs.gov/pub/irs-pdf/i1098et.pdf

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Requirements And Information On The Various 1099 Forms, And When To Use Which One

Almost all businesses will only have to worry about the most common 1099, the 1099-MISC. This form will be used for the most part to pay for labor and services by small businesses, independent contractors, doctors or health clinics.

Corporations are for the most part exempt from this, except for legal and medical corporations. You also must file a 1099 form for any monies paid to an attorney or crew members of a fishing vessel.

Payouts of substitute dividends, royalties or tax-exempt interest will also demand a 1099, as well as the sale of products for resale worth $5000 or more to a retailer who does not have a permanent establishment.

The forms must be filed by February 28th in 2013. This date usually falls in the last week of February if you are filing by paper, and 30 days later if filing electronically. The electronic filing date for 2013 falls on April 1, 2013.

You will need the Social Security Number or the TIN of the business with whom you are filling to form out to. Many small business owners use their SSN, so don’t be surprised if that happens. The TIN is a federal Tax Identification Number.

The 1099 form is the way the government is trying to track income which had been very hard to trace previously, and while there is some extra paperwork, the reporting data is not that hard to adhere to. Online File Taxes can help you with every aspect of your 1099 situation, and help you to make sure that you file the correct 1099 and that their reporting is accurate.

Some of the other 1099 forms are below:

• 1099-INT

• 1099-R

• 1099-B

• 1099-DIV

• 1099-C

• 1099-S

The letter designation behind the 1099 usually gives a clue as to what the form is for. 1099-INT, for instance, is issued by banks and other financial institutions to show how much interest income you’ve had – for instance, from a CD.

If you are forgiving, or canceling a loan, you will issue a 1099-C whether or not the person who had the loan can count that as income. The 1099-S deals with the sale of real estate, while a 1099-DIV deals with dividend income.

Also, as you draw money out of a retirement or pension plan, a 1099-R will be issued so that the taxes can be paid on the money drawn out.

The 1099 form, if used properly can be a good thing to your taxes – it is a much more reliable form of record keeping for expensing purposes. The penalties can be stiff, but if you are keeping decent records the 1099 reporting requirements will not add a huge amount of effort to your tax routine.

Online File Taxes can make sure that all your 1099 requirements are being met, and can do it in paper or e-filing form. Remember, if you have over 250 1099 forms, you must file them electronically.

Go to our website now to see how we can help you with the new 1099 requirements, and any tax service you may need!

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