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
Do I Need to Submit Form W-2C if an Employee’s Address Changed?
You do not need to file Form W-2C (Corrected W-2) just because an employee’s address changes. Form W-2C is used
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
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
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
Form 1099-HC Due Date: January 31 & March 31 Deadlines
Form 1099-HC Due Date Requirements Form 1099-HC due date is January 31 for recipients and March 31 for Massachusetts state
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
How do I correct an error on Form CA-592?
For Form CA-592 (Resident and Nonresident Withholding Statement), the California Franchise Tax Board (FTB) requires that corrections be made by
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
Does Form 1099-HC Apply to Non-Massachusetts Residents?
Form 1099-HC Massachusetts is required for state residents to verify health insurance coverage under the individual mandate. If you live
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.
Key Components of a B-Notice
Notices CP2100 and CP2100A are known as “Backup Withholding Notices” and are sent when a payee’s name or Taxpayer Identification
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
Purpose of IRS Letter CP2100A
IRS Letter CP2100A is a notice the IRS sends to businesses and other payers when it finds mismatches in taxpayer
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.
Understanding Massachusetts Form 1099-HC: Codes and Fields Explained
Understanding the codes and fields on Massachusetts Form 1099-HC helps you file your state tax return accurately. This guide breaks
Why Doesn’t Massachusetts Form 1099-HC Require a Social Security Number?
Massachusetts Form 1099-HC does not require a recipient’s Social Security Number (SSN). Instead, the state verifies health insurance coverage using
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,