Most common mistake is failure to prepare Form 1099-MISC
The IRS 1099-MISC form is one of the very important forms that need to be filled by a number of entities such as businesses, estates, trusts and non-profits at the end of each calendar year.
The IRS 1099-MISC is filed and filed for each person to whom a payment has been made during the year:
- royalties or payments made to brokers for a value of at least $ 10 in place of dividends or interest that is tax-exempt;
- payment of not less than $600 in the following categories:
- services carried out by a non-employee
- awards and prizes
- income payments from other sources
- payments for healthcare and medical items
- proceeds from crop insurance
- payments made in cash to buy aquatic creatures from a person who is in that business or trade
- payment made from a notional principal contract to either an estate, partnership or individual;
- attorney fees
- proceeds from a fishing boat
- Direct sales of consumer products of a value of not less than $5,000 made to a buyer and meant for resale in any outlet that does not qualify to be a permanent, regular retail establishment.
Areas in which mistakes are made in filling up IRS 1099-MISC
The fact is that the IRS 1099-MISC form is the IRS 1099 form that comes with the maximum errors. Why is this so? What are the kinds of errors that people who file the IRS 1099-MISC are most prone to?
Among the most important areas in which people make errors most commonly in the IRS 1099-MISC form are these:
– Mismatch between the payee’s name and the payee’s Identification Number, with confusion over the Social Security Number, or Taxpayer’s Identification Number, or Employer’s Identification Number. In many cases, the amount is seldom entered incorrectly in the provided boxes
– Many people make errors in preparing Form 1099-MISC for payment of services of a value of over $600
– Another major area in which errors occur in filling up IRS 1099-MISC is in the section in which to fill up the requisite amount, whether in Block 3, Block 7 Nonemployee Compensation, or Other Income.
Get to understand the proper method of preparing, filling and filing IRS 1099-MISC
It is to help overcome these fallacies that Compliance4All, a leading provider of professional trainings for all the areas of regulatory compliance will be organizing a learning session. At this webinar, which will be spread over 90 minutes, Greta Hicks, a former IRS Revenue Agent and Regional Training Coordinator, the author of IRS Examination and Appeals Procedures, and pilot tester of on-line continuing education courses for Checkpoint Learning, will be the speaker.
Want to gain insights into the workings of the IRS 1099-MISC?
Then, please register for this webinar by logging on to http://www.compliance4all.com/control/w_product/~product_id=501195LIVE?Wordpress-SEO
At this session, Greta will equip participants with the timeframe required for preparing to file for IRS 1099-MISC. She will state the correct methods of preparing for and filing these forms. By the time participants complete this course, they will have had a clear understanding of how to evaluate the W9 and prepare an IRS 1099-MISC with all the blocks appropriately ticked and completed, with suggestions about the content of each of these boxes. They will be able to select the entities and payments reported on Form 1099-MISC, will gain the confidence required to ensure that the Name and EIN, ID, and SSN match, and also be able to ensure that amounts are in the correct block.
To help participants get a clear idea of filing for IRS 1099-MISC, she will explain the following:
o Review W-9 for accuracy and completeness
o Match W-9 SSN, EIN, and TIN to IRS records
o Entities that should send 1099 MISC
o Entities who should receive a 1099-MISC
o Block by block instructions of 1099-MISC.
At this webinar, Greta will cover the following areas:
o What name and EIN/SSN goes on the 1099-MISC?
o How do I know what amount goes in which block?
o Example: Block 3, Other Income, versus Block 7, Non-Employee Compensation
o Example: Block 7, Non-Employee Compensation Paid to Attorneys or Block, 14, Gross Proceeds Paid to an Attorney
o Example: Block 6, Medical and Health Care Payments
o Select the entities and payments reported on Form 1099-MISC.