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, […]
“First Four” Rule to TIN matching
In TIN matching, the IRS generally checks only the first four characters of a business name or last name when
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
What Do I Do If My Employer Hasn’t Sent Me My 1099 Form Yet?
1. Reach Out to Your Employer First, contact your employer or the company’s payroll/HR department to remind them. Employers are
Understanding a Sample 1099-K Situation: Freelancing Through PayPal
With the rise of the gig economy and digital payments, more freelancers and small businesses are receiving IRS Form 1099-K,
The Rise of the State Healthcare Mandates
The rise of state healthcare mandates reflects an increasing trend where individual states are enacting their own health insurance requirements,
IRS Letter 226-J and Follow-Up Letters: What Employers Need to Know
IRS Letter 226-J is a penalty assessment notice sent to employers with 50 or more full-time employees under the Affordable
1095-B and 1095-C Forms: How to Handle Ampersand (&)
When filing IRS Form 1095-B or Form 1095-C, special characters like the ampersand (&) can create validation issues in XML
System Authorization Error – SysError – 2 Header-005 Header-006
When electronically filing ACA Forms 1095-B or 1095-C, you may encounter an error message such as: System Authorization Error –
ACA Software Gateway Timeout Error: Causes and Fixes for IRS AIR System Uploads
About 5% of files uploaded to the IRS AIR System fail with a Gateway Timeout Error. This happens when the
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8027 Software: Allowable Characters
When filing IRS Form 8027 (Employer’s Annual Information Return of Tip Income and Allocated Tips) electronically, it’s important to understand
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ACA Safe Harbor Codes Explained: Line 16 on Form 1095-C
When filing Form 1095-C, employers must use Line 16 codes to explain why an employee did not enroll in coverage
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Form 1098-T : Student’s Taxpayer Identification Number
Colleges and universities use IRS Form 1098-T to report tuition payments and qualified education expenses. The form requires schools to
Social Security Number Masking: What It Is and Why It Matters
Social Security Number (SSN) masking protects taxpayers by hiding part of the SSN on recipient copies of IRS forms like
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Do I need multiple TCC numbers to efile 1095 forms?
The short answer is no. You only need one Transmitter Control Code (TCC) number to e-file ACA forms, including Form
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AIRER602 Payload attachment error (MTOM) – unable to read the attachment
When filing ACA data through the IRS AIR system, you may encounter the AIRER602 payload attachment error (MTOM). This error
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ACA Foreign Employer Addresses
The 1095 software can easily process foreign recipient or employee addresses.This article focuses on foreign employee addresses. However, the 1095
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AIRMF3014 Rejected transmission – File is a duplicate
When filing Affordable Care Act (ACA) forms electronically through the IRS AIR system, you may encounter the error code AIRMF3014.
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ACA: Apostrophes in Name or Address Fields
When filing ACA forms through the IRS AIR system, special rules apply to apostrophes in names and addresses. The IRS
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ACA Foreign Recipient Addresses
Please reinstall the 1904/1095 software from this link https://www.1099fire.com/try_now.htm Reinstalling will give you the most current version that can handle
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AIRTIN500 – TIN Validation Failed: How to Fix This ACA E-Filing Error
The AIRTIN500 – TIN Validation Failed error occurs in ACA e-filing when the last name and SSN of a 1095
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ACA Replacement and Corrections
Updated June 15, 2016. Please reinstall the 1094/1095 software from this link https://www.1099fire.com/try_now.htm Reinstalling will give you the most current version
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How to Correct a 1095-B or 1095-C Record Through IRS AIR
The IRS AIR (Affordable Care Act Information Returns) system does not provide a direct void option. However, you can still
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AIRMF3005 Error – Rejected Transmission in IRS Filing
If you receive the AIRMF3005 error when transmitting ACA forms to the IRS, it means: The value of the Manifest
IRS Form 1095-C : Line 15 and 16 Instructions
IRS Form 1095-C is required for applicable large employers (ALEs) to report health insurance coverage offered to employees under the
Valid and invalid TIN matching characters
When performing TIN (Taxpayer Identification Number) matching with the IRS or other authorized systems, it’s critical to use the proper
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IRS Form Data File Naming Convention Explained
When you submit ACA forms electronically, the IRS requires you to follow a very strict IRS Form Data File Naming
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ACA Application for a Transmitter Control Code (TCC Number)
Businesses that file 250 or more ACA information returns must e-file using a Transmitter Control Code (TCC). Without this code,
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When Businesses Need to Submit Form 1095-C and 1095-B Under the Affordable Care Act
The Affordable Care Act (ACA) introduced new filing requirements for businesses offering health coverage. Employers must use Form 1095-C and
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Form 1095-B and 1095-C: Avoiding Special Character Errors in IRS E-Filing
When e-filing Form 1095-B and Form 1095-C, data is transmitted in XML format to the IRS. To prevent rejections, it’s
1095 Forms
You Received Form 1095-C From Your Employer: Now What Do You Do?
When you receive Form 1095-C from your employer, it provides information about the health insurance coverage offered to you and
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The Affordable Care Act: Overview of Forms 1095-A, 1095-B and 1095-C
The Affordable Care Act (ACA) requires most individuals to maintain a minimum level of health insurance coverage. To enforce this,
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What to Do If You Receive IRS Form 1095-B
IRS Form 1095-B is issued to verify that you and your dependents had minimum essential health coverage under the Affordable
CA-592
CA-592: Non-Resident Income Withholding
Non-Resident Income Withholding on CA-592 refers to the process of withholding taxes on income earned by non-residents in California. The
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IRS Rule Change: Automatic Gratuities Now Count as Service Charges, Not Tips
In recent years, the IRS updated its rules on automatic gratuities for large parties in restaurants. Traditionally, parties of six
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IRS Forms 1095-C and 1094-C: Employer Health Coverage Reporting Explained
Under the Affordable Care Act (ACA), employers with 50 or more full-time employees must report health insurance coverage using Forms