Form 1099 Archives - Tax2efile Blog

DEPARTMENT OF LABOR Set to define Employee or Independent Contractor

Independent contractors are those employees who are free from supervision and direction from their employers and do not have any control over the performance of their duties. They are generally in business for themselves, offering their service to the general public. Independent contractors have an established business, assume risks for their loss and profit, set up their schedule, and are also free to refuse work offers. The difference between the employer-employee relationship and the employer-independent contractor relationship...

Need to Know About Form 1099-NEC Non-Employee Compensation

Until the year 2020, the Internal Revenue Service made use of Form 1099-MISC to report their self-employment taxes and the revenue generated from their freelancing and self-employment jobs. From the year 2020, a new Form has been introduced to help businesses and taxpayers to report their income of $600 or more, generated from work outside their regular employment. The ultimate aim of this Form is to clarify separate filing deadlines while reporting different types of payments on...

This Week’s Top Story About E-filing Form 2290

The IRS Form 2290 is the Federal tax return Form for filing truck tax. It is also known as the Heavy vehicle use tax. It is a federal tax for heavy-weight highway vehicles, with a gross weight of 55,000 pounds or more. The owners of heavy vehicles should file their returns with the IRS annually, to get their stamped Schedule 1 copy.  Due Date to e-file 2290 HVUT Taxes The due date to file Form 2290 is...

Form 1099-QA, Distributions From ABLE Accounts

The IRS tax Form 1099-QA is used to report information about the distributions from the saving accounts of special-needs individuals, through their accounts that are been created through the ABLE (Achieving a Better Life Experience) Act. The Internal Revenue Service states that any agency that has established and maintains a qualified ABLE program, should file this Form with the IRS, every time it makes any distributions for each ABLE account or when it terminates them.  What are...

LLC vs. Incorporation: Which Should I Choose?

While registering a business, the decision is generally made whether it should be a corporation or a limited liability company. This decision depends on the type of the business, the tax consequences of the entity, and other similar considerations. Upon such registrations, the assets of the business will be protected from creditors. It also offers an additional layer of legal protection for the business. But what should you choose between incorporation or LLC? Let us discuss this...

Everything Your Nonprofit Needs to Know About the Form 990 Balance Sheet

Not-for-profit organizations generally stay tax-exempt but still have to file Form 990 to let the IRS know the way they use their donations and resources to stay exempted from tax. The Form 990 balance sheet statements testify to their financial position and are essential to substantiate the transparency of the Nonprofit business. This form is made public to make it easy for donors and other people interested in supporting the cause to evaluate the organization before supporting...

What happens if I file form 4868 late?

The tax filers of the United States can use Form 4868, to avail automatic extension of time to file the individual income tax return. By filling out this Form, the citizens can avail time extension only for the paperwork. It is important to note that filing Form 4868 does not entitle late payment of taxes. They should pay the tax amount they owe to the IRS, well within the deadline.  What if I file Form 4868 late?...

When can I file my 2021 taxes 2022?

The Internal Revenue Service announced that the Nation’s tax season will start on January 24th, 2022. The Tax agencies will begin accepting and processing the 2021 tax returns after this date. The IRS encourages the citizens to have all the information they require in hand, to complete and return the tax Forms accurately. Accuracy of the tax form helps in reducing processing delays, and delays in refunds as well.  The due date for filing 2021 tax returns:...

Form 1099-PATR, Taxable Distributions Received from Cooperatives

If you have received distributions from co-operative societies, the IRS considers this as taxable income and expects its citizens to report this revenue in the IRS tax Form 1099- PATR. This is a tax form that helps taxpayers to report their income from less-familiar sources. Taxpayers will receive this Form from the co-operatives if they were paid at least $10 as dividends or other distributions from the co-operatives in the previous tax year.  Apart from distributions the...

Form 1099-Q, Payments from Qualified Education Programs

Some students save up for their tuition fees and contribute money to some qualified tuition programs such as the Coverdell ESA or a 529 Plan. After they have saved up and when they withdraw money from the account to pay the school expenses for the year, then they should report this in Form 1099-Q. This is considered as taxable income and they will receive Form 1099-Q to report all the withdrawals that they have made through the...