TPE1132 – Failed Due To Checksum Validation Error
The TPE1132 – Failed Due To Checksum Validation Error occurs in the IRS AIR system when the checksum validation of […]
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.
TPE1101 – XML is not well formed
When filing ACA information returns, you may encounter the TPE1101 error in the IRS AIR (Affordable Care Act Information Returns)
Transmission Processing Errors in IRS AIR System
Transmission Processing Errors (TPE) in the IRS Affordable Care Act Information Returns (AIR) system occur when submitted files do not
What Do the “Series 1” and “Series 2” Codes on Form 1095-C Mean?
The Series 1 and Series 2 codes on Form 1095-C provide details about the health coverage an employer offers to
What constitutes a “reportable policy sale”?
A reportable policy sale happens when the ownership of a life insurance policy is transferred in exchange for money or
What Are Cash Tips, and Are They Included in Form 8027 Reporting?
Cash tips are gratuities customers give directly to employees. They can be in the form of bills, coins, or checks.
What’s the difference between Form W-2 and Form 1099-NEC?
The main difference between Form W-2 and Form 1099-NEC lies in who receives them and how they report income. Here’s
When was Form 1099-NEC reinstated, and why?
The IRS brought back Form 1099-NEC for the 2020 tax year after nearly forty years. Businesses now use the form
What is the difference between gross receipts and total receipts?
When filing IRS Form 8027, it’s important to understand the difference between gross receipts vs total receipts. Both terms apply
The Rise of ACA State Mandates
The Affordable Care Act (ACA), passed in 2010, aimed to expand access to affordable health insurance. While the federal mandate
Can You File W-2C Prior Year Corrections?
Employers can file W-2C prior year corrections to fix mistakes on previously filed W-2 forms. If wages, withholdings, or employee
ACA Compliance for Businesses With 49 or Fewer Employees
Businesses with 49 or fewer employees generally have no Affordable Care Act (ACA) compliance obligations. The ACA’s employer mandate applies
What vehicles qualify for 1098-C reporting?
Form 1098-C, “Contributions of Motor Vehicles, Boats, and Airplanes”, is used by charitable organizations to report the donation of vehicles
What Is Considered a Large Food or Beverage Establishment Under Form 8027?
The IRS defines a large food or beverage establishment under Form 8027 based on employee count. Specifically, the business qualifies
How does the IRS match 1099 forms to individual tax returns?
The IRS uses a process called document matching to compare information reported on Form 1099 to the taxpayer’s individual income
Is Form 3922 Required If Stock Is Sold Immediately?
If you’re an employer, you may wonder: Do I still need to file Form 3922 if an employee sells their
Reporting Non-Cash Gambling Prizes on Form W-2G
Non-cash gambling prizes, such as cars, trips, or other valuable items, must be reported on Form W-2G (Certain Gambling Winnings)
Who Doesn’t Need a 1099-NEC?
Certain types of payments and recipients are exempt from receiving Form 1099-NEC (Nonemployee Compensation). In general, you don’t need to
Are seasonal or temporary workers included in the ACA employee count?
Yes, seasonal and temporary workers are generally included in the Affordable Care Act (ACA) employee count when determining whether an
What to Do if a Contractor Refuses to Provide a W-9
When hiring contractors, you must collect Form W-9 before issuing payments. This form provides the contractor’s Taxpayer Identification Number (TIN)
Are winnings from online gambling subject to Form W-2G reporting?
Yes, winnings from online gambling can be subject to Form W-2G reporting if certain thresholds are met, just like with
Form 1042-S Gambling Winnings for Non-U.S. Residents
When a non-U.S. resident (nonresident alien) wins a gambling prize in the United States, specific tax rules apply. Winnings are
Directly vs. Indirectly Tipped Employees: Key IRS Differences
The IRS distinguishes between directly tipped employees and indirectly tipped employees based on how tips are received and reported. Knowing
Form 8027 Reporting Requirements for Employers
Form 8027 reporting requirements apply to certain businesses in industries where tipping is customary. The IRS uses Form 8027, Employer’s
What is the “employer mandate” under the ACA?
The employer mandate under the Affordable Care Act (ACA), also known as the Employer Shared Responsibility Provision, requires certain employers
ACA Dependent Coverage: Do Employers Have to Offer It?
Under the Affordable Care Act (ACA), employers with 50 or more full-time employees must provide health insurance coverage to their
Who is Considered a Full-Time Employee Under ACA?
Under the Affordable Care Act (ACA), the definition of a full-time employee is critical for determining whether an employer must
Form 1095-C: What Employees Should Do When They Receive It
If you receive Form 1095-C, don’t worry—you do not need to attach it to your tax return. However, it’s important
Can I Email Copy B of 1099 Forms to Recipients?
Yes — the IRS allows you to email Copy B of Form 1099 to recipients instead of mailing paper copies.
Understanding Key Boxes on Form 1099-DIV
Understanding Key Boxes on IRS Form 1099-DIV Form 1099-DIV reports dividend income and distributions to taxpayers. Here’s a detailed breakdown
Decoding the Codes: How to Interpret Distribution Codes on Form 1099-R
When you receive a Form 1099-R for a retirement or pension distribution, you’ll notice that Box 7 contains a distribution
Chapter 3 vs Chapter 4 on Form 1042-S: Key IRS Withholding Differences
IntroductionIRS Form 1042-S is used to report certain U.S.-source income paid to foreign persons, along with any U.S. federal tax
Chapter 4 FATCA Explained: Preventing Tax Avoidance & Form 1042-S Reporting
The primary purpose of Chapter 4 (the Foreign Account Tax Compliance Act (FATCA)) was to address the issue of U.S.
What is IRS Form 1099-SB and why it matters?
IRS Form 1099-SB, titled “Seller’s Investment in Life Insurance Contract,” is a tax form used to report the sale, transfer,
Real-Life Case Studies: Reporting Gambling Winnings with Form W-2G
Here’s an example of a real-life situation involving IRS Form W-2G that illustrates how it works, who’s responsible for what,
Real-Life Case Studies: Reporting with Form 1099-B
Understanding how to report transactions using IRS Form 1099-B is crucial for taxpayers engaged in trading securities or cryptocurrencies. Here
Real-Life Examples: Case Studies of Form 1098-F
Here are a few hypothetical examples based on the form’s purpose, which is to report payments made for fines and
Step-by-Step Guide to Reporting Charitable Vehicle Donations with Form 1098-C
Donating a vehicle to charity can provide a significant tax benefit, and IRS Form 1098-C, Contributions of Motor Vehicles, Boats,
IRS Form 1098: What It Is and Why It Matters for Homeowners
IRS Form 1098, also known as the Mortgage Interest Statement, is a tax document provided by mortgage lenders to report
Reporting requirements for Form 1097-BTC
Form 1097-BTC reports tax credit allocations for certain bonds, such as Build America Bonds and Qualified Zone Academy Bonds. Accurate
What is the difference between Form 1099-MISC and Form 1099-NEC?
Form 1099-MISC and Form 1099-NEC are both IRS forms used to report income paid to individuals or businesses outside of
Does everyone who files a 1042-S have to file a 1042 as well?
Yes. If you are required to file Form 1042-S, you generally must also file Form 1042. These forms work together
What is a qualified intermediary for a 1042-S form?
A qualified intermediary (QI) for a 1042-S form is an intermediary, usually a foreign financial institution, that has entered into
1042-S Scenario: Casino and Foreign Winner’s Gambling Winnings
When a foreign tourist wins money at a U.S. casino, the IRS requires reporting through Form 1042-S. Gambling winnings for
1042-S Scenario: Book Publisher and Foreign Author Royalties
When a U.S. publisher pays royalties to a foreign author, those payments count as U.S.-source income. The publisher must report
How can I get refund from the total withholding credit on Form 1042-S?
To get a refund from the total withholding credit on Form 1042-S, follow these steps: 1. Complete Your U.S. Tax
IRS Form 1095-C: Understanding Boxes 14, 15, and 16 for ACA Reporting
RS Form 1095-C is used by Applicable Large Employers (ALEs) to report health insurance coverage offered to employees under the
IRS Form 1099-DA: Digital Assets
IRS Form 1099-DA, also known as the Digital Assets form, is a recent addition to the IRS reporting system. It
What is the difference between IRS Form 1042 and 1042-S?
Forms 1042 and 1042-S are both related to tax reporting for payments made to foreign persons, but they serve different
IRS Form 1042-S: What is a Withholding Agent?
A withholding agent is any person, business, or organization (U.S. or foreign) that is responsible for paying income to a