What Is IRS Form 1042 and Who Must File It?
What Is Form 1042 Who Must File Form 1042 You must file Form 1042 if you are a withholding agent […]
Information Returns
Information returns report payments and other amounts to the IRS and to recipients. Common forms include 1099, 1098, 5498, 1042-S, and W-2G. This section explains who must file, thresholds and deadlines, state rules, and how to e-file originals and corrections.
1099s for Landscaping and Snow Removal Services
Property owners, management companies, and businesses often hire independent contractors to maintain their grounds — mowing lawns in the summer
Noncash compensation on 1099-NEC: barter, credits, in-kind work
Noncash Compensation Overview Noncash or “in-kind” compensation includes anything of value given for services instead of money — such as
1099s for U.S. territories payees (PR/VI/GU/AS/MP)
Puerto Rico (PR), U.S. Virgin Islands (VI), Guam (GU), American Samoa (AS), Northern Mariana Islands (MP) Step 1 — Classify
1099-NEC vs. 1099-MISC: A decision tree by payment type
Getting the form right comes down to what you paid for. Use this step-by-step decision tree, then check the quick-reference
NIL (Name/Image/Likeness) Deals: 1099 Rules
Core rule: Most NIL payments to student-athletes are business income to the athlete (independent contractor/sole prop). Payers typically issue Form
Babysitting & Lawn Care by Minors — Personal Payments
Core rule: If you’re paying personally for work at your home (babysitting, mowing, raking), you’re not a business payer. That
IRS Matching of 1099s to Individual Returns
Every year, the IRS processes billions of information returns, including Forms 1099, W-2, and 1095. These forms don’t just disappear
1099 Reporting for Crowdfunding and Online Fundraising
Crowdfunding platforms like Kickstarter, GoFundMe, and Indiegogo have opened new doors for entrepreneurs, nonprofits, and individuals. But along with the
IRS 1099 Reporting for Influencers and Content Creators
Social media influencers, YouTubers, and content creators are transforming digital marketing. But with that growth comes tax responsibility. Payments from
When Employers Must File Both 1095-B and 1095-C
Form 1095-B Overview Form 1095-B is used by insurance providers, including self-insured small employers, to report information about individuals who
1099 Reporting for Lawsuit Settlements and Attorney Fees
When a lawsuit results in a settlement, the tax reporting obligations depend on the type of damages paid. In general,
What Is Form 1099-CAP and When Must It Be Filed?
Form 1099-CAP, “Changes in Corporate Control and Capital Structure,” is an IRS information return. It is used when shareholders receive
What if I Get Both a W-2 and a 1099 From the Same Employer?
Why You Might Receive Both Forms There are legitimate situations where the same business issues you both a Form W-2
What If You Forgot to File 1099s for Last Year?
If you didn’t issue 1099s for last year, don’t panic — but don’t ignore it either. The IRS imposes penalties
1099 Forms, Information Returns
Will Congress Ever Raise the $600 1099-NEC Threshold?
Congress has already passed a law that will raise the $600 threshold for 1099-NEC, so this is more than just
1099 Forms, Information Returns
A Freelancer’s Nightmare: What Happens if You Don’t Get a 1099?
For many freelancers and independent contractors, tax season comes with one familiar form: the 1099-NEC. It’s the document clients issue
1099 Forms, Information Returns
Form 1099-PATR: What Farmers and Co-op Members Need to Know
If you’re a farmer or a member of an agricultural cooperative, chances are you’ll encounter Form 1099-PATR (Taxable Distributions Received
Information Returns
How to Handle Contractor Pushback on Providing W-9 Information
When you hire independent contractors, collecting a completed Form W-9 (Request for Taxpayer Identification Number and Certification) is one of
1099 Forms, Information Returns
IRS 1099-K Threshold Reinstated
Form 1099-K is issued by third-party settlement organizations and payment processors (such as PayPal, Venmo, Stripe, or marketplaces) to report
1099 Forms, Information Returns
State-Specific 1099-K Thresholds: What Businesses Should Know
Form 1099-K is used by third-party settlement organizations (such as PayPal, Stripe, and Venmo) to report payments to businesses and
1042 / Foreign Reporting
Hiring International Contractors? When to Use 1099 vs. 1042-S
Hiring international contractors requires following IRS reporting rules. Whether you issue Form 1099-NEC or Form 1042-S depends on the contractor’s
Countries With U.S. Income Tax Treaties for Form 1042-S Withholding Credits
The United States has income tax treaties with many countries that may allow nonresident aliens to claim a reduced withholding
Form 1095-C Coding Guide
Employers filing Form 1095-C must correctly report employee health coverage using Line 14 (Offer of Coverage) and Line 16 (Safe
IRS Forms 1095-B, 1095-C
What to Do If You Missed Filing ACA Forms for a Prior Year – and How 1099FIRE Can Help
Failing to file Affordable Care Act (ACA) information returns—Forms 1095-B, 1095-C, and transmittals 1094-B/C—for a prior year can be stressful.
1099 Forms, Information Returns
1099 Reporting for Real Estate Transactions Beyond Form 1099-S
Form 1099-S is the IRS’s primary form for reporting proceeds from real estate transactions, such as sales or exchanges of
1099 Requirements for Agricultural Businesses
Understanding the 1099 requirements for agricultural businesses is essential for farmers, ranchers, and agribusiness owners. Agricultural operations often rely on
Handling 1099 Reporting for Prizes, Awards, and Promotional Giveaways
Businesses often use contests, awards, and promotional giveaways to attract customers and reward employees or partners. While these incentives can
When Payments in Foreign Currency Require a 1099
U.S. businesses sometimes pay independent contractors, vendors, or professionals in a currency other than U.S. dollars. If those payments are
1099 Considerations During Mergers & Acquisitions
Mergers and acquisitions (M&A) are complex transactions that involve not only strategic and financial decisions, but also compliance with IRS
Estate Distributions & 1099 Reporting for Beneficiaries
When an estate distributes assets to beneficiaries, the executor or trustee may have to issue IRS information returns. Understanding when
What Types of Services Qualify for 1099‑NEC Reporting?
Understanding the services that require a 1099 is essential for business owners, contractors, and anyone making reportable payments. The IRS
1099 Forms, Information Returns
Case Scenario for IRS Form 3921 (Exercise of an Incentive Stock Option)
Form 3921 is used to report the exercise of Incentive Stock Options (ISOs). When an employee exercises options, the employer
What steps should a recipient take if they believe the Form 1099‑NEC they received is incorrect?
If someone receives a Form 1099-NEC (Nonemployee Compensation) that they believe is incorrect, the IRS expects them to take action
The Difference Between Information Returns and Tax Returns
When it comes to filing with the IRS, not all forms are created equal. Two major categories—information returns and tax
Why You Should Review Form 1042 Before Filing Form 1042-S
When it comes to withholding and reporting payments to foreign persons, many filers focus on Form 1042-S—the statement issued to
Understanding the Codes and Fields on IRS Form 1098-T
If you’re a student or the parent of a student, you’ve likely received IRS Form 1098-T, the Tuition Statement. This
1042-S Chapter 3 and 4 Status Codes
On Form 1042-S, the Chapter 3 Status Code (Box 12) and Chapter 4 Status Code (Box 13i) are used to
How to Minimize Penalties After a Missed Deadline
The IRS charges late filing penalties when businesses miss deadlines for information returns such as 1099s. However, you can take
Understanding the Differences Between Forms 1095-B and 1095-C
Under the Affordable Care Act (ACA), certain employers and insurers are required to provide forms detailing health coverage information to
State-Specific 1099 Filing Requirements: What You Need to Know
Navigating 1099 filing requirements across different states is crucial for businesses and individuals to ensure compliance and avoid penalties. Here’s
Form 1042-S vs. 1099: Correctly Classifying Payments to Foreign Contractors
When working with independent contractors, one of the most important tax compliance steps is ensuring that payments are reported on
What Is IRS Form 8955-SSA and Who Must File It?
If you sponsor or administer a retirement plan, you may be required to file IRS Form 8955-SSA, but many plan
Form 1095-C Line 14 Codes: Understanding Offer of Coverage Indicators
Employers subject to the Affordable Care Act (ACA) must file Form 1095-C each year to report the type of health
Real Estate Professionals: Navigating 1099-S Reporting Requirements
If you’re involved in real estate transactions—whether as a broker, title company, attorney, or closing agent—you may be responsible for
Form 1099-Q: Understanding Education Savings Plan Distributions
Paying for education is expensive, but thankfully, certain tax-advantaged savings plans can help. If you’ve contributed to or used a
You have identified your file as a correction; however, the data is not coded with a ‘G’ or ‘C’ in position 6 of the B record(s).
When filing corrections through the IRS FIRE system, you may see the error:“You have identified your file as a correction;
Application Process for a FIRE TCC
If you plan to electronically file information returns with the IRS, you must complete the application process for IRS FIRE
How to Reconcile Form 1042 With Your 1042-S Filings
Reconciling Form 1042 (Annual Withholding Tax Return for U.S. Source Income of Foreign Persons) with your Form 1042-S filings is
State of Tennessee and Form 1099-K compliance
Understanding the Tennessee 1099-K filing requirements is essential for payment processors, settlement entities, and businesses that fall under this rule.