Monday, January 25, 2021

TTB Form Online Permits portal, process

 

The Alcohol and Tobacco Tax and Trade Bureau appeared its new Permits Online entryway, and it's looking somewhat less awkward. Require four minutes of your time and watch this video to get comfortable with how allows are coordinated, how to utilize the extravagant new applications wizard and how to get to paper entries to revise on the web.

 

Here are a portion of the smooth updates (indeed, smooth the extent that administrative cycles go).

 

You can present various alterations all at once

 

In prior forms of Permits Online, you were restricted to submitting one change (or correction) at a time, and you needed to stand by until the TTB Form Online followed up on that revision prior to presenting another. While you'll actually need to trust that the TTB will act prior to mentioning extra changes, you may now present numerous corrections all at once. This will save you both time and exertion.

 

There is presently auto-endorsement of specific revisions

 

For most marking business trademark demands, the Workseer will concede programmed endorsement. In the event that the mentioned business trademark passes certain framework checks, your business trademark revision will be affirmed in a flash, in any case, the correction will get allocated to a TTB expert to measure.

 

Likewise, all street number changes are consequently endless supply of your revision. Not that it might require as long as 24 hours for these corrections to be thought about your endorsement records, yet the changes are viewed as affirmed when you get the robotized endorsement notice.

 

Paper filers can utilize Permits Online

 

Uplifting news, gramps, TTB has auto-moved the records for past applications that were submitted and affirmed on paper shapes into the new substance and item record structure in Permits Online. Except for the couple of utilization types that can't be documented through Permits Online, presently most industry individuals can present all new and changed applications for those organizations electronically utilizing Permits Online.

 

Here's the way to interface old paper records to your online record.

 

Farewell Environmental Information

 

Workseer established that it is not, at this point fundamental for it to gather the ecological data showing up on TTB Form 5000.29. This means you will presently don't see the natural data inquiries in new or corrected applications in Permits Online; anyway the inquiries relating to water quality remain.

Thursday, January 21, 2021

5 Easy Steps to eFile 1099-NEC Form Online through Taxseer

 Why are so many tax professionals and individual filers switching to the Taxseer platform in 2021 to e-file form 1099-NEC online?  Here’s what our users are telling us are the top ten reasons they choose Taxseer over other Form 1099-NEC e-File  service providers:

  • Cost-Effectiveness: Our prices are the lowest in the industry thanks to our use of an efficient and & well-designed application to e-file form 1099 NEC, 1099-MISC, 1099-Series, W-2, and 1095 B/1095-C online that consumes few resources.
  • High Security & Privacy: We use SSL-encrypted connections for transferring sensitive information and our payment processing service is certified as PCI Level 1, the most stringent level of certification in the payment industry. Your data is secure with us.
  • Automated Mailing: Our fully automated e-filing platform will automatically mail the recipient copy to the recipient.
  • 24/7/365 Availability: As part of our commitment to make e-filing easy and convenient, we are always available. Our cloud-based application allows users to access their files anytime, from anywhere, and from any device.
  • Easy User Management: If you’re a professional accountant, you can manage all of your clients through a single account. No need for multiple user names or multiple passwords.
  • Effective Chat & Email Support: Live chat support is available weekdays from 9 AM to 6 PM (EST). Email support is available 24/7/365 – just send your questions to support@taxseer.com.
  • Wizard-Driven e-filing: Taxseer is an easy-to-use platform thanks to our wizard-driven application. This guidance ensures smooth utility and error-free form submissions.
  • Bulk Upload Utility: Taxseer provides Excel upload feature to enable bulk upload of all supported forms to avoid manual data entry through Taxseer screens. Bulk Utility is used by all our large customers and Tax professionals to easily load hundreds of forms.
  • Stress-free Workspace: It’s easy to work within our dashboard. Our user interface has been designed with you in mind. It almost makes doing your taxes fun…we said almost.
  • Cloud-enabled Solution: Since our platform runs on the cloud, it allows for the latest in technology in the areas of security, availability, artificial intelligence, and user experience.
5 Easy Steps to EFile IRS Form 1099-NEC
5 Easy Steps to EFile IRS Form 1099-NEC through Taxseer platform

Taxseer provides form 1099 NEC e-File options to the filers through the online forms that mimic the paper forms. Filers generally used to perform Form 1099 MISC Online Box 7 for Non-Employee Compensation (NEC) will be filing Form 1099-NEC for the tax year 2020. The ease of filing Form 1099-NEC online, guided by the Taxseer wizard, makes Taxseer the leading IRS approved e-File self-service solution in the market.  Our vast base of returning customers has proven our success.

Filers can eFile Form 1099 NEC easily and securely through Taxseer by following these five easy steps:

Step 1: Create a free account with Taxseer

Create a free account on www.taxseer.com by just providing your email address and name. It just takes less than a minute to sign up and then you are ready to start filing Form 1099 MISC.

Step 2: Add the Filer/Payer information

Select the TIN type (EIN or SSN) that will be used for the filer record and enter the TIN information based on the selection. Provide the complete business address and other information including the email address and fax#.

Step 3: Add the Recipient/Payee information

Select the TIN type (EIN or SSN) that will be used for the Recipient record and enter the TIN information based on the selection. Provide the complete business address of the recipient and the email address. Email address is important for the recipients using the recipient portal to download the various forms submitted by the filers.

Step 4: Complete the pre-populated form through the online editable form

The filer and recipient are automatically populated on the form and the rest of the information can be manually entered using the editable 1099 NEC Online Form. The completed form can be confirmed and added to the shopping cart so that all completed forms can be checked out at the same time.

Step 5: Select the service type, pay the service charge, and submit the form for e-filing

Taxseer provides the following three service options for the 1099 NEC forms efile:

  • eFile only: In this case, the filer downloads the completed form and mails the recipient copy by itself while Taxseer performs the efiling with the IRS system.
  • eFile and mail the recipient copy: In this case, Taxseer performs the efiling of the Form 1099 NEC with the IRS system and mails the recipient copy.
  • eFile and Recipient portal: In this case, an email is sent to the recipient with the link for the form. The recipient logs into the Taxseer’s recipient portal to view and download the Form 1099 NEC submitted by the filer. Taxseer also eFiles the form 1099 NEC with the IRS system.

Taxseer’s e-Filing responsibility

Taxseer’s automated services will e-file your submitted 1099 NEC Form Online with the IRS systems and update the result (Accepted or Rejected status) back in the Taxseer after it is processed. For any rejection, a detailed rejection message will be provided so that the filer can edit the rejected forms and resubmit after correction. Taxseer maintains the filing history securely on the cloud for at least 7 years and it is accessible 24x7x365 from anywhere.

Sign up with TaxSeer today so you too can take advantage of these and other benefits of the best IRS Form 1099-Series, W-2, and 1095 B/C e-filing platform in the industry.

About Taxseer

Taxseer (www.taxseer.com) is a leading IRS-authorized e-file service provider offering you the best cloud-based solutions to perform online filings of Form 1099 NEC, 1099 MISC,  1099 Series, W-2, ACA (1095-B & 1095-C), 2290, 8849, 8809, W-9 and many more. We provide Wizard-driven e-filing for guided and error-free submissions and extend the security, intelligence, availability, and agility of the tax solution on the cloud. SSL-encrypted connections are used for transferring sensitive information and to provide a very safe environment for clients. As part of our commitment to making e-filing easy and convenient, we are always available.

Monday, January 18, 2021

Forms 1099 eFile Checklist for the Tax Year 2020

 Even though most of the businesses would prefer a static landscape, as far as the tax compliance rules are concerned, because that predictability would make planning so much easier. IRS tax rules, however, are dynamic and complex. The reward for getting it right is significant.

Ok, so it’s complex. How then can filers and tax professionals address this increasing complexity? That’s where modern Tax Compliance platform like Taxseer can help to gain an edge while greatly increasing efficiency and tax compliance. Best-in-Class companies find that a move towards a paperless, more automated tax compliance platform has produced higher productivity as it allows them better tax compliance, better visibility, the ability to collaborate, streamline processes, and avoid IRS penalties & damage to the brand reputation.

Form 1099 & W-9 online
IRS Form 1099 & W-9 online

The due dates for filing all 1099 forms with the IRS have been shifted from 31st March to the 1st February for the tax year 2020. It is a busy time for all businesses to gather the required information to file all 1099 forms, including the newly added 1099-NEC Form Online (Non-Employee Compensation). There is a clear distinction between the Form 1099s and W-2s and only the full-time employees get the W-2s. Any wrong filing of 1099s or W-2s could lead to IRS penalty and Taxseer will help you with the following checklist to e-file 1099 forms with the IRS.

IRS Form 1099 eFile Checklist for the Tax Year 2020

The following checklist will make sure that you have all the required information before you start filing and submit the 1099 electronic file to the IRS:

  1. Review your vendor list: As per IRS rules, any business should have the vendor’s TIN and the contact information before you start doing business with them. Review your vendor’s list and to make sure that this information is available in your database.
  2. Send Electronic W-9 to the vendors through the Taxseer platform: If you have the vendor’s TIN missing then use the Taxseer’s free W-9 portal to send the W-9 request to the vendors. Taxseer will send the email with a custom link to vendors to connect to the portal. This electronic method of W-9 submission vastly improves the time to get back the TIN from the vendors as well as maintain better compliance with the IRS rules.
  3. Receive & Review the vendor’s TIN: Recipients can submit the TIN through the online W-9 form in the portal and it will be directly updated in the recipient/payee database. Review the TIN before you start filing the 1099s.
  4. Fill the online 1099 forms on Taxseer platform: Taxseer provides very user-friendly online forms that mimic the IRS 1099 paper form to avoid any confusion when filers move from paper filing to the electronic option. The form filing is guided by the tax-wizard to ensure that filers can file the 1099 forms correctly and the validation engine makes sure that all entries pass the IRS validations to avoid rejections.

One of the important changes from the Tax Year 2020 is the introduction of the Form 1099 NEC Online for easy reporting of nonemployee compensation and eliminating confusion over the filing deadline. The IRS has moved all nonemployee compensation (NEC) income reporting from the traditional Form 1099 MISC Online Box 7 to the new form 1099-NEC. All other boxes to report different income types on the traditional Form 1099-MISC still remains the same. There is some shuffling of the boxes on the form 1099 MISC to account for Box 7 that was removed. Other than this, the Form 1099-MISC is mostly the same and can be used to report income types such as rent, other income, or royalties.

Form 1099-NEC has Payer’s information (Name, Address, and TIN), Receiver’s information (Name, Address, and TIN), and the boxes to report Box 1 (non-employee compensation), Box 4 (Federal Tax withheld), and Boxes 5-7 (State information). Use Box 1 to enter the Non-Employee Compensation for $600 or more. Use Box 4 to enter the backup withholding information.

You can view the updates to the 2021 General Instructions for Certain Information Returns (irs.gov) and the General Instructions for Certain Information Returns (2021) | Internal Revenue Service (irs.gov) here. For starters, learn the 5 Easy Steps to e-File Form 1099-NEC Online through Taxseer. Click here to understand the form 1099-NEC filing deadlines.

Taxseer has updated the eFile platform to include the new 1099 NEC Form Online as well as updated the Form 1099 MISC that has been impacted by the changes in the non-employee compensation reporting changes. A New Excel file upload option has been added to upload the form 1099 NEC through bulk upload. The bulk upload feature is used by filers having 20 or more 1099 NECs and it vastly reduces the filing effort for medium and large businesses.

  1. Review & submit the online 1099 forms: Taxseer provides the option to review all final forms with the edit option to make sure that all forms are filled correctly. The reviewed forms are added to the shopping cart so that all 1099 Forms can be submitted together.
  2. Mail the recipient copies to the recipients: Taxseer provides three service types to the filers for sending the recipient copies during the forms checkout from the shopping cart.
    1. eFile only: This option will only eFile the submitted forms with the IRS system. However, Taxseer provides a single PDF file for all recipient copies in the order so that the filer can easily print and mail the forms to the recipients.
    2. EFile & Mail: This option will eFile the forms with the IRS system as well as mail the recipient copies through a proven mail service provider for an additional charge of $1.25 / form. This is the preferred service opted by most of the filers as the efiling and mailing responsibility is handled by Taxseer.
    3. EFile & Recipient portal: This option will eFile the form with the IRS system as well as send an email with the link to the online forms to the recipients. A hint for the PIN is sent along with the link and this works as the password to view the recipient copy online. Recipients can download and print the form by themselves.
  3. Monitor the IRS filing status: Taxseer dashboard helps filers monitor the form filing statuses with the IRS and act for any rejections.
  4. Submit the online 1099 Corrections for any filing errors: Filers can submit the form 1099 correction forms for any filings that have been incorrectly submitted.

We hope that the form 1099 filing checklist will help you submit the correct form before the IRS due date to remain compliant with the IRS tax rules and avoid penalty. We will maintain your submitted file online for 5 years at no additional cost. For More Info

About Taxseer

Taxseer is a leading IRS-authorized e-file service provider offering you the best cloud-based solutions to perform online filings of Forms 1099 series, W-2, ACA (1095-B & 1095-C), 2290, 8849, 8809, and many more. We provide Wizard-driven e-filing for guided and error-free submissions and extend the security, intelligence, availability, and agility of the tax solution on the cloud. SSL-encrypted connections are used for transferring sensitive information and to provide a very safe environment for clients. As part of our commitment to making e-filing easy and convenient, we are always available.

Sunday, January 17, 2021

IRS Form 1099 NEC Filing Deadline for the Tax Year 2020

Whew…2020 is behind us and there is no denying the fact that it affected all strata of society. As we look forward to 2021 with hope and optimism, it is important to also remember the positives from last year. We fully witnessed resiliency and adaptability among everyone to cope up with the dire situation. That means it all gets easier now, right?

Not exactly. But in truth, it wasn’t all bad. As the novel coronavirus (COVID-19) continues to spread globally, its societal impact is reshaping the way businesses operate. As part of this, the IRS and States are amending their policies to make the reporting easier and avoid any complexities in the process. One of the important changes from the Tax Year 2020 is the introduction of Form 1099 NEC Online for easy reporting of nonemployee compensation and eliminating confusion over the filing deadline.

IRS Form 1099 NEC filing deadline for the Tax Year 2020
IRS Form 1099 NEC Filing Deadline for the Tax Year 2020

While all these adjustments are happening, it is important that you are aware of your IRS related tax compliance deadlines along with the new policy changes. There is a lot that needs to be done this tax year and things are not going to be easy at all with the addition of the new form 1099 NEC in the 1099 form series. You can view the updates to the 2021 General Instructions for Certain Information Returns (irs.gov) and the General Instructions for Certain Information Returns (2021) | Internal Revenue Service (irs.gov) here.

About the new Form 1099 NEC introduced in the IRS Form 1099 Series

From the tax year 2020, the IRS has moved all nonemployee compensation (NEC) income reporting from the traditional Form 1099 MISC Online Box 7 to the new form 1099-NEC. All other boxes to report different income types on the traditional Form 1099-MISC still remains the same. There is some shuffling of the boxes on the form 1099 MISC to account for Box 7 that was removed. Other than this, the Form 1099-MISC is mostly the same and can be used to report income types such as rent, other income, or royalties.

In recent years, IRS found significant fraud by individuals submitting tax returns with sizable refund requests using falsified Forms 1099-MISC. They were reporting small amounts of nonemployee compensation but large amounts of withholding. These tax returns used to be submitted and processed before the March 31 filing deadline for form 1099, making it impossible for the IRS to match recipient statements with payer copies of the form 1099.

To overcome this issue, the IRS made some policy changes regarding the 1099 filings and advanced the 1099-MISC IRS reporting deadline for nonemployee compensation to January 31. However, these changes created issues for filers as there were filing deadline confusion and filing errors in the IRS e-file system and wrongly penalized the filers.

To avoid further chaos, the IRS resurrected the 1099-NEC From Online the tax year 2020. It is to be noted that Form 1099-NEC is not a new form and it was used till early 1982 before it was replaced by Form 1099-MISC.

Purpose of Filing Form 1099 NEC Online

Businesses that pay $600 or more during trade or business to independent contractors for services will be impacted by this change. The form 1099-NEC will cover payments to consultants like architects, attorneys, accountants, and any non-employee sales commissions. Payments by federal, state, or local government agencies are also reportable but personal payments are not.

You must generally report a payment as NEC when you meet the following conditions:

  • You made the payment to an independent contractor who is not your employee. However, if the independent contractor is registered as a C corporation or S corporation, a 1099-NEC will not be required
  • You made payments of at least $600 to the recipient during the year
  • You made the payment for services in the course of your trade or business (including government agencies and nonprofit organizations)
  • You made the payment to an individual, estate, partnership, or, in some cases, a corporation

Tax Year 2020 Filing Implications

The resurrection of 1099 NEC Form Online For 2020 will have some complications for forms 1099 filers, and it will require significant effort to prepare for this filing season. Some of the important issues are:

State Reporting

Form 1099-NEC has not been included in the Combined Federal-State Filing Program by the IRS. A separate state filing will be required based on the format required by each jurisdiction.

Multiple Recipient Statements

From this year, filers must send two separate statements to the payees if the 1099 forms had payments for nonemployee compensation and other reportable income. In the previous years, these recipients received a single recipient statement. Under the rules listed in the IRS publication 1179, these statements should not be combined into a single recipient statement for 2020 reporting.

Due dates for the Form 1099-NEC

As of January 31, 2021, falls on a Sunday, the due date for filing the 1099-NEC Recipient copy, IRS e-file, and IRS paper filing is Feb 1, 2021.  There is no automatic extension

What is reported in the new Form 1099-NEC?

Form 1099-NEC has Payer’s information (Name, Address, and TIN), Receiver’s information(Name, Address, and TIN), and the boxes to report Box 1 (non-employee compensation), Box 4 (Federal Tax withheld), and Boxes 5-7 (State information). Use Box 1 to enter the Non-Employee Compensation for $600 or more. Use Box 4 to enter the backup withholding information.

E-File Form 1099 NEC for the Tax Year 2020 with Taxseer

No one enjoys the stress of tax season, especially when you’re running your own small business. But whether you’re filing taxes on your own or are supported by a small accounting team, TaxSeer.com is here to help.

Taxseer provides options to eFile Form 1099 NEC Online to the filers through the proven forms engine that mimics the paper forms. Filers generally used to perform form 1099 paper filing with the IRS find the Taxseer online editable forms very easy to use guided by the tax wizard to complete the error-free form. The ease of Filing 1099-NEC Form Online without any support from anyone makes Taxseer a truly self-service efile system for the filers or tax professionals.

As part of our commitment to making e-filing easy and convenient, we are always available. Contact us today to learn more about how our model is best suited to your small business needs.

For starters, learn the 5 Easy Steps to e-File Form 1099-NEC Online through Taxseer.

About Taxseer

Taxseer is a leading IRS-authorized e-file service provider offering you the best cloud-based solutions to perform online filings of Forms 1099 series, W-2, ACA (1095-B & 1095-C), 2290, 8849, 8809 and many more. We provide Wizard-driven e-filing for guided and error-free submissions and extend the security, intelligence, availability, and agility of the tax solution on the cloud. SSL-encrypted connections are used for transferring sensitive information and to provide a very safe environment for clients. As part of our commitment to making e-filing easy and convenient, we are always available. 

Tuesday, January 12, 2021

5 Easy Steps to eFile Form 1099-NEC Online through Taxseer

 Taxseer provides option to eFile Form 1099 NEC Online to the filers through the proven forms engine that mimic the paper forms. Filers generally used to perform form 1099 paper filing with the IRS find the Taxseer online editable forms very easy to use guided by the tax wizard to complete the error-free form. The ease of filing online Form 1099-NEC without any support from anyone makes Taxseer a truly self-service efile system for the filers or tax professionals.

Form 1099 NEC Online Filing
Form 1099 NEC Online Filing for Tax Year 2020

5 Easy Steps to e-File Form 1099-NEC Online

Filers can eFile Form 1099 NEC easily and securely through Taxseer by following these five easy steps:

Step 1: Create a free account with Taxseer

Create a free account on www.taxseer.com by providing your email address and name. It just takes less than a minute to sign up and then you are ready to start filing Form 1099 NEC or other IRS forms.

Step 2: Add the Filer/Payer information

Select the TIN type (EIN or SSN) that will be used for the filer record and enter the TIN information based on the TIN type selection. Provide the complete business address and other information including the email address and fax#.

Step 3: Add the Recipient/Payee information

Select the TIN type (EIN or SSN) that will be used for the Recipient record and enter the TIN information based on the selection. Provide the complete business address of the recipient and the email address. Email address is important for the recipients using the recipient portal to download the forms submitted by the filers.

Step 4: Complete the pre-populated form through the online editable form

The filer and recipient are automatically populated on the form and the rest of the information can be manually entered using the editable 1099 NEC Online Forms. The completed form is added to the shopping cart so that all completed forms can be checked out at the same time.

Step 5: Select the service type, pay the service charge, and submit the form for e-filing

Taxseer provides the following three service options for the 1099 MISC forms efiling:

  • eFile only: In this case, the filer downloads the completed form and mails the recipient copy by itself while Taxseer performs the efiling with the IRS system.
  • eFile and mail the recipient copy: In this case, Taxseer performs the efiling of the Form 1099 MISC with the IRS system and mails the recipient copy.
  • eFile and Recipient portal: In this case, an email is sent to the recipient with the link for the form. The recipient logs into the Taxseer’s recipient portal to view and download the Form 1099 MISC submitted by the filer. Taxseer also eFiles the form 1099 MISC with the IRS system.

Taxseer’s e-Filing responsibility

Taxseer’s automated services will e-file your submitted 1099 NEC Form Online with the IRS systems and update the result (Accepted or Rejected status) back in the Taxseer after it is processed. For any rejection, a detailed rejection message will be provided so that the filer can edit the rejected forms and resubmit after correction. Taxseer maintains the filing history securely on the cloud for at least 7 years and it is accessible 24x7x365 from anywhere.

About Taxseer

Taxseer (www.taxseer.com) is a leading IRS-authorized e-file service provider offering you the best cloud-based solutions to perform online filings of Form 1099 NEC, Form 1099 MISC Online, 1099 Series, W-2, ACA (1095-B & 1095-C), 2290, 8849, 8809, W-9, and many more. We provide Wizard-driven e-filing for guided and error-free submissions and extend the security, intelligence, availability, and agility of the tax solution on the cloud. SSL-encrypted connections are used for transferring sensitive information and to provide a very safe environment for clients. As part of our commitment to making e-filing easy and convenient, we are always available.

Sunday, January 10, 2021

1099 NEC Form Online For 2020

 As part of your growth strategy, you may have decided to hire independent contractors to be included in your business solution. Good idea – some of the best talent in our economy exists in the form of independent contractors. From graphic design, to landscaping, to administration, independent contractors can provide small businesses with a wealth of support. However, when tax season comes around, these independent contractors are seen differently than your regular employees in the eyes of the IRS.

IRS Form 1099 Non-Employee Compensation (NEC) Online Filing
1099 NEC Form Online For 2020

Independent contractors don’t receive a W-2 for the work they complete. Instead, they will use what is called the IRS 1099 NEC (Non-Employee Compensation) Form to calculate and file their taxes for the tax year 2020. If you’ve paid any independent contractors at least $600 in compensation over the course of the year, you must file a 1099 NEC form with the IRS in order to report their income. “But I’m the creative force behind our company’s growth!” you might say. “I need to spend my time (and money) focusing on our next big idea or how I’m going to tackle the challenges we’ll face in the coming year.” Fortunately, TaxSeer.com, a leading IRS-authorized online filing service provider, has you covered. Our low-cost, secure model for e-filing your 1099 NEC and other forms makes tax season easy and convenient for you.

What is Form 1099-NEC?

Form 1099-NEC Online is a variant of Form 1099 used to report Non-Employee Compensation to the contractors. Now, the IRS has moved all non-employee compensation (NEC), defined as payments of $600 or more to independent contractors, income reporting from Box 7 of the Form 1099-MISC to the new 2020 Form 1099-NEC. All other traditional Form 1099-MISC income types, such as rent, other income, or royalties will continue to be reported on the Form 1099-MISC. However, there are no changes in the rules for determining income that should be reported as non-employee compensation versus other income types such as rent, other income or royalties. The introduction of 1099-NEC Form Online in 2021 is simply a change in the reporting mechanism to avoid filing deadline confusion and plug any possible fraud through 1099-MISC filing.

The boxes have been now rearranged on Form 1099-MISC. Box 7, where nonemployee compensation was once reported, and now it shows the check box for direct sales of $5,000 or more. The deadline for filing the 2020 tax year’s 1099-MISC is March 31, 2021, if filing electronically.

The new Form 1099-NEC is not a major change; The renewed 1099-NEC Form Online separates out nonemployee compensation from other sections of the 1099-MISC Form Online and imposes a filing deadline of Feb. 1, 2021.

Purpose of Filing Form 1099 NEC

Businesses that pay $600 or more in the course of trade or business to independent contractors for services will be impacted by this change. The form 1099-NEC will cover payments to consultants like architects, attorneys, accountants, and any non-employee sales commissions. Payments by federal, state, or local government agencies are also reportable but personal payments are not.

You must generally report a payment as NEC when you meet the following conditions:

  • You made the payment to an independent contractor who is not your employee. However, if the independent contractor is registered as a C corporation or S corporation, a 1099-NEC will not be required
  • You made payments of at least $600 to the recipient during the year
  • You made the payment for services in the course of your trade or business (including government agencies and nonprofit organizations)
  • You made the payment to an individual, estate, partnership, or, in some cases, a corporation

Why was Form 1099 NEC introduced?

Form 1099 NEC was retired around 1983 and is being reintroduced in for the tax year 2020 for business and individual 1099 filing needs to address confusion created by the PATH (Protecting Americans from Tax Hikes) Act of 2015. The PATH act created different due dates for different types of income reported on Form 1099 MISC, leading to confusion for filers and possible penalties for late filings. It also increased the risk of tax fraud for many employers due to the urgency to file the forms with little attention to details. The IRS further required two filings of the 1099-MISC form from 2018: one filing for forms that contained information in Box 7 and another for the remaining boxes. Due to these multiple forms, there were penalties if a form with Box 7 information was filed incorrectly. To make matters more complex, there were multiple filing dates. Forms with Box 7 information were due the last day of January, while Forms 1099-MISC with no Box 7 information were due by the last day of February for paper filers and the last day of March for electronic filers.

From the tax year 2020, IRS decided to fix these complications by reintroducing the 1099-NEC and a consistent due date of the last day of January for both paper and electronic filers, with no option of automatic extension.

What is the required information to complete Form 1099-NEC?

Form 1099-NEC has Payer’s information (Name, Address, and TIN), Receiver’s information(Name, Address, and TIN), and the boxes to report Box 1 (non-employee compensation), Box 4 (Federal Tax withheld), and Boxes 5-7 (State information). Use Box 1 to enter the Non-Employee Compensation for $600 or more. Use Box 4 to enter the backup withholding information.

What are the due dates for Form 1099-NEC?

As January 31, 2021 falls on a Sunday, The due date for filing the 1099-NEC Recipient copy, IRS e-file, and IRS paper filing is Feb 1, 2021.

The new version of Form 1099 MISC, which will no longer include non-employee compensation, will follow the February 28 and March 31 filing deadline for paper and electronic returns, respectively.

What are the penalties for missing the Form 1099-NEC filing deadline?

The penalties for delay in filing form 1099-NEC are:

  • $50 if filed within 30 days
  • $100 if filed more than 30 days late, but before August 1
  • $260 if filed on or after August 1

About Taxseer

Taxseer is a leading IRS-authorized e-file service provider offering you the best cloud-based solutions to perform online filings of Forms 1099 series, W-2, ACA (1095-B & 1095-C), 2290, 8849, 8809 and many more. We provide Wizard-driven e-filing for guided and error-free submissions and extend the security, intelligence, availability, and agility of the tax solution on the cloud. SSL-encrypted connections are used for transferring sensitive information and to provide a very safe environment for clients. As part of our commitment to making e-filing easy and convenient, we are always available.

Wednesday, January 6, 2021

The Simple Way To e-File 1099 NEC Form Online In 2020-2021 (With Step by Step Instructions)

Make your life a whole lot easier by learning the easiest way to file Form 1099-NEC Online for the tax year 2020-2021.

 

There is no repudiating that filing tax forms is one of the most demanding experiences for business taxpayers, especially for the tax year 2020-2021 because of the resurrection of the 1099-NEC Form Online.

 

You get one structure wrong, and the IRS dismisses your recording. These outcomes in going through hours and days attempting to (indeed) sort out the correct structures that apply to your business and entering the correct data, stamping, lastly, documenting the administrative work.

 

Recording Form 1099-NEC Online is something that each business needs to do (charitable or for-pick up organizations the same) and should feel capable while doing as such.

 

Moreover read: A Complete Guide to the New IRS Form 1099-NEC Online

 

While you can't altogether skirt the way toward recording your 1099-NEC Forms, you can definitely make it much simpler.

 

How much simpler?

 

All things considered, with this straightforward device, you can:

 

Present your structures to the IRS with no actual administrative work.

 

Cut down on time spent on paper documenting by in any event half.

 

Set aside cash by in any event 25%.

 

This isn't one of those "takes", yet a sensible arrangement to help you document your tax documents to the IRS, without breaking your bank.

 

Moreover ? This is a straightforward way to deal with record your 1099-NEC Form Online frames safely. Which means, you are consenting to the state and central governments and the IRS.

 

In case you're searching for the right directions to record your 1099-MISC Form Online and 1099-NEC Form Online for the duty year 2020-2021, at that point we suggest perusing this article distributed by the IRS.

 

The Easiest Way to e-File Form 1099 NEC

 

The entire cycle of paper documenting Form 1099-NEC Online may appear to be confounded to organizations that are new or battling to locate a decent bookkeeper to do it for them. This is the reason changing to e-recording is the best and the most effective approach to put your assets at work.

 

The web has made some amazing progress. It's the lone significant instrument that organizations around the globe utilize each and every day regardless. Truth be told, with the lockdown limitations confining organizations to work at max throttle, in light of the Covid-19 worldwide pandemic, organizations are searching for approaches to bring all their business activities on the web.

 

What's more, this incorporates recording tax documents to the IRS. Furthermore, individuals are investing energy online now like never before, which is something beneficial for organizations that need to make the best out of this.

 

Presently, in case you're thinking on the lines, "I can't believe the web with my federal retirement aide subtleties. It's undependable."

 

You're correct.

 

Absence of online security is the single main motivation why individuals don't confide in e-documenting stages. All things considered, you are putting out some truly touchy data about your business on the web.

 

Nonetheless, not all things are as terrible as you may might suspect – in any event with organizations that take all the measures to give the best security principles.

 

There were numerous organizations that DID lose a considerable lot of client information since they didn't know about information hacking or capture attempt and its results.

 

To counter such digital wrongdoings and further convey a more secure and private experience to organizations and their clients, online security frameworks and guidelines were made accessible to organizations around the globe.

 

How can this assistance your motivation?

 

With upgraded security to e-documenting, your information is protected. Which means, nobody will see the data you're entering in your structures aside from you and the IRS.

 

You will make a protected exchange without putting your touchy data in danger.

 

e-Filing Form 1099-NEC Online with Taxseer

 

Taxseer is an amazing e-recording stage intended to help organizations document their tax documents on the web. This incredible stage is incorporated with information the executives and bookkeeping applications, for example, Zoho Books, Bill.com, QuickBooks Online, QuickBooks Desktop, Fresh Books, Entrata, and that's just the beginning.

 

With Taxseer's 206-digit bank-grade security framework, which is the most elevated security standard on the planet utilized by the US military and worldwide governments, you can be guaranteed that your information is seen by your eyes and the IRS as it were.

 

Taxseer makes the dreary cycle of e-documenting amazingly simple. We have eliminated all the superfluous advances engaged with e-recording tax documents by actualizing a basic 3-venture measure.

 

Step-wise Instructions to File Form 1099-NEC Online with Taxseer

 

Make your free Taxseer record to begin.

 

No shrouded costs. No Mastercard data is required.

 

Stage 1: Select Your Form

 

On your Taxseer dashboard, you can choose any structure that you need to e-document by essentially tapping on our Form index. Taxseer offers you 30+ IRS agreeable Form for e-documenting.

 

Presently, in the event that you need to mass document, you can import all the information with our mixes to our safe stage, and Taxseer will fill and create the structures for you naturally.

 

Stage 2: Enter the Information and Validate

 

Then again, you can physically enter the data and approve the entered data. In the event that the data is right, you should simply get to the following stage. On the off chance that the data is inaccurate, you ought to development with your sellers or concerned gatherings to hit the nail on the head.

 

Stage 3: e-File

 

Essentially present the documenting to the IRS. You have done your part and now, let the IRS hit you up. Intelligent filings ordinarily require a couple of moments to two or three hours for the IRS to audit and react. Build meetings require up to 24-36+ hours.

 

Taxseer likewise offers extra assessment agreeing administrations, for example, TIN coordinating, Address approval, and booked e-filings.

 

Before you record, in the event that you have any questions, you can converse with our help group here.