Am I Required to File a Form 1099 or Other Information Return?

If you made or received a payment during the calendar year as a small business or self-employed (individual), you are most likely required to file an information return to the IRS.

Do not file Copy A of information returns downloaded from the IRS website. The official printed version of the IRS form can be scanned, but the online version of it [printed from the website] is not. A penalty may be imposed for filing forms that cannot be scanned.

Made a Payment

If, as part of your trade or business, you made any of the following types of payments, use the link to be directed to information on filing the appropriate information return.

  • Payments, in the course of your trade or business: (1099-MISC) (Note: It is important that you place the payment in the proper box on the form, as shown below.) 
    • Services performed by independent contractors or others (not employees of your business) (Box 7)
    • Prizes and awards and certain other payments (see Instructions for Form 1099-MISC, Box 3. Other Income, for more information)
    • Rent (Box 1)
    • Royalties (Box 2)
    • Backup withholding or federal income tax withheld (Box 4)
    • Crewmembers of your fishing boat (Box 5)
    • To physicians, physicians’ corporation or other supplier of health and medical services
      (Box 6)
    • For a purchase of fish from anyone engaged in the trade or business of catching fish (Box 7)
    • Substitute dividends or tax exempt interest payments and you are a broker (Box 8)
    • Crop insurance proceeds (Box 10)
    • Gross proceeds of $600 or more paid to an attorney (generally, Box 7, but see instructions as Box 14 may apply)
  • Interest on a business debt to someone (excluding interest on an obligation issued by an individual. (1099-INT)
  • Dividends or other distributions to a company shareholder. (1099-DIV)
  • Distribution from a retirement or profit plan or from an IRA or insurance contract. (1099-R)
  • Payments to merchants or other entities in settlement of reportable payment transactions, that is, any payment card or third party network transaction. (1099-K)

Received a Payment and Other Reporting Situations

If, as part of your trade or business, you received any of the following types of payments, use the link to be directed to information on filing the appropriate information return.

  • Payment of mortgage interest (including points) or reimbursements of overpaid interest from individuals. (1098)
  • Sale or exchange of real estate. (1099-S)
  • You are a broker and you sold a covered security belonging to your customer. (1099-B)
  • You are an issuer of a security taking a specified corporate action that affects the cost basis of the securities held by others. (Form 8937)
  • You released someone from paying a debt secured by property or someone abandoned property that was subject to the debt, (1099-A)  or otherwise forgave their debt to you. (1099-C)
  • You made direct sales of at least $5,000 of consumer products to a buyer for resale anywhere other than a permanent retail establishment. (1099-MISC)

Not Required to File Information Returns

You are not required to file information return(s) if any of the following situations apply:

  • You are not engaged in a trade or business.
  • You are engaged in a trade or business and
    • the payment was made to another business that is incorporated, but was not for medical or legal services, or:
    • the sum of all payments made to the person or unincorporated business is less than $600 in one tax year.
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SINCERE ADVICE: START EARLY

Accu-Tax Services strives to SIMPLIFY your income tax filing experience. Ensure smooth processing for 2017, in 2018, by following three things you, as taxpayer, can do early:

1) Locate and set aside your previous year’s income tax return

If you are a new client, one step that is easily overlooked or forgotten is this:

For a tax preparer to have the least questions, be sure to bring your last year’s [2016] tax return to your appointment. If you cannot find the return, let us know early. A copy of last year’s tax return can be requested from the IRS.

Having your last-year’s return readily available is time-saving, and stress-saving … but also, by creating an accurate flow of your information from year to year, any confusion on the part of federal and state agencies is greatly reduced, once your current year’s return preparation is submitted. (Relieving stress tip #1).

2) It’s important to gather documents

Together with your previous year’s return, make sure you have all the needed documents for 2017 before filing. This includes:

  • Forms W-2 from employers.
  • Forms 1099 from banks and other payers.
  • Forms 1095-A from the Marketplace (for those claiming the Premium Tax Credit).

Usually these forms begin arriving in your mail in January. Be sure to check them over carefully – and if any of the information shown is wrong, contact the payer right away for a correction. Keep them all together, in one place, until you are sure you’ve received everything.


3) Taxpayers with expiring ITINs should renew promptly

If you’ve been issued an Individual Taxpayer Identification Number, you may need to renew it before the end of the year to avoid a refund delay and possible loss of key tax benefits.

These [ITINs] expire Dec. 31, 2017:

  • ITINs not used on a tax return in the past three years.
  • ITINs with middle digits 70, 71, 72 or 80.

Contact ATS if you think you need to file for an ITIN renewal prior to completing your tax return in 2018. If you need to renew, a form must be completed and mailed, along with original identification documents or copies certified by the issuing agency. Once done, it takes about seven weeks to receive an ITIN assignment letter from the IRS.

Welcome to our new blog

This is the post excerpt.

Over the last 35 years, Accu-Tax Services has existed as a personal service company [at one time or another, in three different states!] offering accounting, bookkeeping, payroll and income tax services to individuals and small businesses. Owner Deborah Bilyew has enjoyed assisting people just like you, and learning from many different situations along the way.

This year we’re introducing a new service. You can choose to have us file your tax return each year, OR you can choose to have us file your income taxes THIS YEAR, and next year we’ll turn it over to you. We show you how to “recall” your information and data stored in 2018, for use in preparing your income taxes in 2019 yourself.  This saves you time, stress and money!

Imagine!  You could file your future income tax returns, complete with electronic filing and direct deposit of your refund, for as little as $15. Because your previous years’ data is stored for recall when you’re ready to finish this year’s filing, you save time. Because you choose the time you want to sit down and do it, you can experience less stress. Accu-tax Services gets you started. And if you need assistance, we’re here for you.

Personal assistance

Accu-Tax Services Is Your Personal Tax Adviser

We’re here when you need us! Accu-Tax doesn’t close just because the current tax filing season is over.  We’re available to you, whether you need:

  • to file an extention
  • to file a previous year’s return
  • to file business returns
  • accounting or payroll services using Quickbooks
  • answers for your questions on your tax return filings in future years

IMPORTANT!  Also be aware that, unlike many service bureaus, Accu-Tax Services does NOT use Internet-based accounting or payroll processing, and your data is NEVER stored “in the cloud.”  ATS processes your paperwork in-house to local files stored and backed-up, right here in the office. Your information is never on the Web, in any form.