1099s Repealed for Corporations! So Do You Need to File Them at All?

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By Stacey Gorowitz, CPA, MBA Although the IRS officially repealed the onerous expanded information reporting requirements for payments made to corporations, the stakes are higher with enhanced penalties for failing to file 1099s when required. Here’s a brief summary explaining when and to whom you do need to file Form 1099 for 2013: When: 1099s are required to be sent to vendors by January 31, 2014 and the corresponding 1099s and summary form 1096 are required to be sent to the IRS by February 28, 2014. Who: All individuals and partnerships including certain corporations to whom you’ve paid $600 or more during the year must be issued a 1099. Individuals would include nonemployees (EX:  Day laborers or subcontractors), etc. Additionally, 1099 reporting is also required for: Rental payments for office space, as well as equipment and machinery. Royalties paid of $10 or more are also included in the 1099 reporting requirement. There are a few exceptions to the general … [Read more...]

If You Fail to Plan…Plan to Pay Taxes!

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By Candace Spencer, CPA, MAFM and Certified QuickBooks ProAdvisor Have you ever been surprised with a large tax bill? When is the last time you received tax planning and/or projections and knew where you stood before year-end? Do you realize that those two questions are closely related? By getting solid financial information and acting on it in a timely fashion, you can prevent unpleasant surprises come filing season. With December right around the corner, time is running out. The good news is that it’s not too late; however, it’s now a race against the clock. If you need more motivation to start thinking about such annoyances as taxes this far before April 15, here are three reasons why you may want to consider tax planning. First, if you haven’t already heard, there have been major changes in the tax law for 2013. Therefore, you can expect the 2013 tax year will NOT be like last tax year. Here are just a few changes you need to be aware of: In 2012 100% of itemized deductions … [Read more...]