Implications of IRS-ICE Data Sharing
The IRS-ICE data-sharing agreement, signed on April 7, 2025, marks a major change in U.S. tax and immigration policy. It […]
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.
Casino Compliance: Managing W-2G and 1042-S Reporting for Gambling Winnings
Casinos in the U.S. have specific IRS reporting obligations when it comes to gambling winnings. The two primary forms involved
How to Handle an IRS CP2000 Notice for Underreported Income
Receiving a CP2000 notice from the IRS can be unsettling. However, it is not an audit, and it does not
Cross-Border Payments Compliance: When to Issue Form 1042-S vs. Form 1099
Navigating U.S. tax reporting rules for cross-border payments can be tricky — especially when deciding whether to issue a Form
ACA Reporting Update: Federal Changes for 1095 Forms
Under the Affordable Care Act (ACA), employers and insurers must file information returns with the IRS and provide employees with
Restaurant Tip Reporting 101: Year-End Compliance with Form 8027
Restaurants that serve food and beverages where tipping is customary have specific year-end reporting requirements — and Form 8027 is
Mandatory E-Filing: Adapting to the 10-Form Threshold Rule
In an era where digital transformation is reshaping how businesses and organizations interact with the IRS, the new e-filing requirements
How Foreign Athletes and Entertainers Are Taxed Using IRS Form 1042-S
Foreign athletes and entertainers who earn income in the United States follow special tax withholding and reporting rules. Payers use
What Employers Need to Know About the IRS Form 8955-SSA Electronic Filing Mandate
The IRS now requires most employers to electronically file Form 8955-SSA starting with the 2024 plan year. This form reports
Do Fantasy Sports Winnings Get Reported on IRS Form W-2G?
Fantasy sports winnings are usually not reported on IRS Form W-2G. That form is designed for reporting gambling winnings from
Understanding IRS Form 1099-SA: How Health Savings Account (HSA) Distributions Are Reported
What Is Form 1099-SA? IRS Form 1099-SA is used to report distributions from a Health Savings Account (HSA), Medical Savings
Why You Might Receive Form 5498 in May Instead of January
IRS Form 5498, IRA Contribution Information, is used by financial institutions to report contributions, rollovers, and other transactions related to
IRS Form 1042-S: Withholding Tax Credit for Foreign Persons
Nonresident aliens (NRAs) can claim a withholding tax credit on Form 1040-NR, U.S. Nonresident Alien Income Tax Return using the
IRS Form 8027 vs. Form 4070: What Restaurant Employees and Owners Need to Know
For restaurant owners and employees, tip reporting is essential for both tax compliance and avoiding penalties. Two key IRS forms
Understanding Form W-2G for Slot Machine Winnings
Form W-2G is an IRS tax form used to report gambling winnings, including slot machines, poker, keno, and other games.
Paperwork Burden Reduction Act
As of 2024, a significant change has been introduced to the delivery requirements for Forms 1095-B and 1095-C. Employers are
How to File a 1099 for a Deceased Person or Business That Closed Mid-Year
If you need to file a 1099 for a deceased individual or a business that closed mid-year, you are still
Why would an Orchestra file Form 1042-S?
An orchestra must file Form 1042-S when it pays U.S.-source income to nonresident aliens. These can include performers, conductors, guest
How the IRS Matches 1099 Forms to Individual Tax Returns
RS 1099 matching is the process the IRS uses to compare 1099 forms against the information reported on individual tax
How to File 1099 Forms for Non-US Residents
When working with non-US residents or foreign contractors, businesses often wonder whether they need to issue Form 1099-NEC. The general
How the 1099 Reporting Process Has Evolved Over the Last Decade
The 1099 reporting process has transformed over the past ten years. Technology, IRS policy changes, and the growth of digital
1099 Forms for Deceased Individuals: What Executors Need to Know
Handling tax matters for a deceased individual can be complex, and 1099 forms are often part of the process. Executors
The Future of 1099 Forms: Will Digital Tax Reporting Replace Paper Forms?
As tax compliance evolves, the move from paper-based filing to digital reporting is accelerating. The IRS is tightening e-filing requirements,
What is blockchain?
Blockchain is a decentralized digital ledger that records transactions securely, transparently, and permanently across multiple computers. Unlike traditional databases, which
Cryptocurrency & 1099s: Tax Reporting for Digital Assets
Cryptocurrency transactions are now under close IRS scrutiny. With the introduction of IRS Form 1099-DA, reporting rules for digital assets
Do Influencers and Content Creators Need to File 1099 Forms?
If you’re an influencer, content creator, or digital entrepreneur, you may be required to file 1099 forms for influencers and
Are small businesses exempt from filing Form 8027?
Many small businesses wonder whether they need to file IRS Form 8027, the Employer’s Annual Information Return of Tip Income
Gradual rollout for new reporting rules on Form 1099-K
For 2024, the IRS has provided a transition relief period, raising the threshold for Form 1099-K reporting. Payment platforms such
IRS FIRE system file status
The IRS FIRE (Filing Information Returns Electronically) system allows businesses to check whether their electronically filed information returns are accepted,
What is IRS Form 15397?
IRS Form 15397 is a relatively new form that businesses can use to request extra time to furnish copies of
IRS FIRE File Types
The IRS FIRE (Filing Information Returns Electronically) System supports various file types for electronically filing information returns. Below is an
How do I attain a TCC number for the IRS FIRE System?
If you plan to electronically file information returns like Forms 1099, 1098, 5498, and W-2G, you’ll need a Transmitter Control
What information should be entered in Box 6 (Identifiable event code), and how is it determined?
Box 6 on Form 1099-C (Cancellation of Debt) requires an identifiable event code. This code tells the IRS the reason
What are the different income codes for various types of U.S.-source income?
In the context of Form 1042-S, which reports U.S.-source income paid to nonresident aliens, there are various income codes used
What steps should a recipient take if they believe the Form 1099-NEC they received is incorrect?
If a taxpayer believes that the Form 1099-NEC (used to report nonemployee compensation) they received is incorrect, they should take
Can Gambling Losses Offset Winnings on Form W-2G?
No. You cannot offset gambling winnings with losses directly on Form W-2G. This form only reports gross gambling winnings to
Is Form 1095-B still relevant after the individual mandate penalty was reduced to $0 federally?
Yes, Form 1095-B is still relevant despite the federal individual mandate penalty being reduced to $0 starting in 2019 under
Does a transmitter control code expire?
A Transmitter Control Code (TCC) is issued by the IRS and used for e-filing information returns. But many filers wonder:
Does Form 8027 apply to food trucks, catering services, or delivery-only businesses?
IRS Form 8027, Employer’s Annual Information Return of Tip Income and Allocated Tips, generally does not apply to food trucks,
How do I determine whether I am an Applicable Large Employer (ALE)?
To see whether your organization is an Applicable Large Employer (ALE), calculate last year’s average number of full-time employees plus
The data is not coded with a ‘G’ or ‘C’ in position 6 of the ‘B’ record(s).
The full error is: You have identified your file as a correction; however, the data is not coded with a
Form 1099-MISC ‘B’ records containing tax withheld appears excessive in relation to the income amounts reported.
If Form 1099-MISC ‘B’ records show tax withholding amounts that appear excessive in relation to the income amounts reported, this
IRS Error: ‘B Record Contains Non-Numeric Characters in the Payment Amount Fields’
If your IRS electronic filing submission returns the error “B record contains non-numeric characters in the Payment Amount Fields,” it
Late 1099 Filings: What to Do If You Miss the Deadline
Missing the IRS deadline for Form 1099 can lead to penalties, but acting quickly can reduce the impact. Here’s how
Difference between 1-step and 2-step corrections
When filing 1099 forms, mistakes happen. The IRS allows you to fix errors using either a 1-step correction or a
How to Fix a 1099-DIV Error with Qualified Dividends
A common 1099-DIV error qualified dividends issue occurs when Field 2 (Qualified Dividends) has an amount but Field 1 (Total
Are referral fees or finder’s fees reportable on a 1099-NEC?
Yes, referral fees or finder’s fees are generally reportable on a Form 1099-NEC if they meet certain conditions. Here’s what
What types of services qualify for 1099-NEC reporting?
Form 1099-NEC reports payments of $600 or more to nonemployees for services performed in the course of a trade or
Understanding Record T, A, B, C, and F in IRS FIRE System
When filing 1099 forms electronically through the IRS FIRE System (Filing Information Returns Electronically), your file must follow the formatting
Does an international winner receive a W-2G or a 1042-S form?
When it comes to gambling winnings, the tax reporting requirements differ depending on whether the winner is a U.S. resident