Some people ask '1099 or W-2?' as if they were asking how
you take your coffee. With all the tax forms coming these days, it's good to
remember the difference. Form W-2 is for employees, and includes details about
tax withholding, remittance to the IRS and state taxing authorities. In
contrast, Form 1099 reports payments to independent contractors. Any Form W-2
or 1099 you receive also goes to the IRS. IRS uses Forms 1099 for easy computer
matching of Form 1099 data against tax returns. But how do you know which form?
We'll come back to that question.
The deadline is Jan. 31 for mailing Forms 1099 to taxpayers,
but the payer generally has until the end of February to send all its Forms
1099 to the IRS. This year (2017, for 2016 payments), the IRS moved up the
filing date for Forms 1099-MISC reporting non-employee compensation in box 7.
The reporting date to the IRS for those forms is January 31, the same as the
due date for forms to be issued to recipients. If there is an error on a Form
1099 tell the payer immediately.
Read More: https://www.forbes.com/sites/robertwood/2017/01/30/irs-form-1099-or-form-w-2/#6a944088133a
Questions: http://rehcpas.com/
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