Tax Season is upon us and the deadlines for many IRS forms are less than two weeks away. These deadlines include Form W-2, Form 1099, Form 941, and Form 940 to name a few. While TaxBandits offers solutions for all of these forms, let’s focus on Form 1099.
Form 1099 has become a source of stress for many business owners and tax professionals alike. Form 1099-MISC has been used to report non-employee compensation for many previous tax years, however, for the tax year 2020, this is no longer the case.
Instead of reporting non-employee compensation on Box 7 of Form 1099-MISC, there is a completely different form on which this information must be reported, Form 1099-NEC.
The Form 1099-NEC is designed solely for the reporting of nonemployee compensation and must be both filed with the IRS and distributed to your recipients by February 1, 2021.
1. Make an Informed Filing Decision
Many employers are struggling to determine whether they need to file Form 1099-MISC or Form 1099-NEC. Filing the incorrect form can cause issues for both you and your recipient when it comes time for them to file their own income tax returns.
TaxBandits offers FAQs, blog posts like this, and a full knowledge base of information to help users determine which of these forms to file under which circumstances.
That’s right! If you have all the information that you need to file your Forms 1099, but would like to leave yourself sometime before IRS transmission. This is the perfect feature for you. You can complete your filing and schedule it in time for the deadline.
If you need to update or make any corrections, you can simply pause and edit your forms. This reduces the chances that you will need to file any 1099 corrections down the road.
3.File Across Multiple EINs
At TaxBandits we are all-inclusive, we offer solutions that will help businesses large and small as well as tax professionals. Tax professionals are able to take advantage of a variety of special features.
The CPA control panel is a great tool for tax professionals. You can easily view each client whose information you have added as well as the forms you have filed for them. From your dashboard, tax professionals can view, track, and e-file forms on their client’s behalf.
You can also manage and offer your clients’ online access to view and download their forms. Be sure to take advantage of the Bulk Upload feature, this allows you to upload large amounts of your clients’ data in one go.
Don’t forget your prepaid credits this tax season! It’s not too late to lock in your best pricing. Your credits also help you speed up your filing process! Learn more about prepaid credits in this video!
4.A Simple Solution for Recipient Copies
TaxBandits is equipped to handle high volume printing of your recipient copies. Whether you need to mail out 10 copies or 10,000, TaxBandits is here to help. Avoid the pesky copy that is marked “return to sender” this year. We run USPS validations to ensure that all of your recipient copies arrive at registered addresses.
The Online Access Portal is a secure portal where your employees and recipients can view and download their form copies of Forms W-2, 1099, and 1095. You can choose this option in addition to postal mailing or instead if you want to go paperless this year.
This is a great way to ensure that your employees and recipients have access to their forms when it comes time to file their income tax returns. This is a great option for businesses that are operating remotely due to the pandemic.
5.Easy 1099 Corrections
We know that your goal is to avoid any errors on your initial Forms 1099, but they are sometimes just a fact of life. While TaxBandits software is designed to help you prevent simple errors by running your form against the IRS Business Rules, we also support 1099 corrections.
You can file 1099 corrections whether you have filed your original Form 1099 with us or not! Within minutes you can complete and transmit your 1099 Corrections Form to the IRS. You can also easily track this correction, much like you would any original form that you file with TaxBandits.
Are you ready to begin filing your 1099s for the February 1 deadline? To get started, simply login to your account or create your free account now!
Filing multiple forms? Don’t forget to purchase prepaid credits! It’s not too late to lock in your best pricing of the tax year 2020.