TaxBandits’ Coffee Break Series: Brew-Up Your Forms on Time to Serve the IRS/SSA.
Order’s up! The IRS and SSA are waiting for you to complete and serve up accurate year-end forms for the 2023 tax year!
The aroma of year-end deadlines is wafting through the air, and if you’re still stirring through your business filings or craving a sip of reassurance, you’ve found the perfect pour!
Don’t worry, we are about to pour you a big cup of tax filing tips to help you stir up your perfect blend by January 31st.
Ingredients for IRS/SSA Tax Compliance – Required Forms
The deadline for filing and/or distributing all of these forms is January 31, 2024:
Form W-2:
Employers must file This essential wage statement for each employee from whom taxes were withheld during the tax year. Filed with the Social Security Administration (SSA), this includes W-2 PR for employers in Puerto Rico.
Form 1099-NEC:
A 1099 information return is used to report payments of $600 or more made to non-employees throughout the tax year. “NEC” covers non-employee compensation, encompassing payments to freelance workers and independent contractors. This form is filed with the IRS.
Form 1099-MISC:
This form, previously used for reporting nonemployee compensation before the introduction of the 1099-NEC in 2020, now focuses on reporting specific miscellaneous payments totaling $600 or more annually. This form must be completed and distributed to payment recipients by January 31st.
Additionally, Form 1099-MISC is used to report:
- Rents
- Prizes and awards
- Other income payments
- Medical and health care payments
- Payments to an attorney
- Crop insurance proceeds
- Cash paid from a notional principal contract
- Fishing boat proceeds
- Section 409A deferrals
- Nonqualified deferred compensation
- Additionally, the form is utilized to report:
- Direct sales of at least $5,000 in consumer products to a buyer for resale, particularly when these sales occur outside a permanent retail establishment.
- At least $10 in royalties or broker payments, excluding dividends or tax-exempt interest.
Additional 1099 Series Forms
The 1099 Series consists of a large number of forms. Here are a few of the less common forms that your business may need to file. They must be completed and distributed to recipients by January 31st as well.
Form 1099-INT (interest income) – The deadline to distribute this form is January 31st.
Form 1099-R (retirement distributions) – The deadline to distribute this form is January 31st.
Form 1099-K (payment card transactions and payments through third-party networks) – The deadline to distribute this form is January 31st.
Form 1099-DIV (distributions and dividends) – The deadline to distribute this form is January 31st.
This quarterly payroll form reports Medicare, Social Security, and income taxes withheld from employee wages throughout the quarter. The deadline for the fourth quarter falls on January 31st and is filed with the IRS. Employers in Puerto Rico should file Form 941-PR.
Filed annually with the IRS, this form reports FUTA taxes, which are the federal unemployment tax act amounts an employer pays during the tax year. Employers in Puerto Rico should file 940-PR. Other payroll forms due today include Forms 943, 944, and 945.
A Tall Order – The IRS Reduces E-filing Threshold for Businesses
The IRS is causing a stir that will affect the filing process of almost every business. That’s right – in their continued efforts to phase out traditional paper filing, the IRS is implementing a new threshold for 2024.
Starting in 2024, businesses are limited to filing a maximum of 10 paper copies of information returns throughout the year. Yes, that includes those year-end forms due to the IRS on January 31, 2024.
If you find that your cup runneth over – over 10 tax forms that is, you will need to file electronically this January. Don’t worry, you may only have a few days, but TaxBandits is here to help!
Setting Up Your TaxBandits Account for Success
Let’s start at the beginning – setting up your account and bringing in your filing information. Are you filing for just your own business, or maybe you’re filing across multiple EINs, getting started is simple. After creating your account, be sure to add your business to the address book, you can also add your recipients here.
You have the option to upload businesses and recipients in bulk if you have more than just a few of each. Then, they will be in your Address Book, just waiting for you to file forms with the IRS/SSA on their behalf.
Now add your team to the account. Multi-user Access allows you to securely collaborate with your staff in the same account.
Remember, if you are a tax preparer, be sure to indicate this when you create your account, this will allow you to take advantage of Pro features such as Client Management, Advanced Staff Management, and more!
Start Concocting Accurate Forms with TaxBandits
There you have it, now that you’ve laid the foundation of your TaxBandits account, and all you need to do is gather your information for filing. Once you have all of this handy, you can file forms manually or in bulk.
You can find all of the TaxBandits Bulk Upload Templates here.
You can also take advantage of a new feature for tax year 2023 – this is the Smart Upload feature! This allows you to use your own file to bulk upload and generate Forms 1099-NEC. TaxBandits harnesses the power of AI to map the file and generate forms for your review.
Once your forms are completed it’s time to e-file them with the IRS/SSA. After transmitting them, you can easily track their status from your account dashboard. We will also send you emails as the forms are processed and accepted by the respective agencies.
You can also add state filing and services for distributing your recipient copies through mail or online access. Stay tuned for more information on these options in our coming Coffee Break blogs!
In the meantime, Create your TaxBandits account and get started today, you’ll be serving the IRS/SSA delightful accurate filings before you know it!
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