In Greenshades' latest installment of our Year-End series, “Navigating 1099 Reporting,” we were joined by our in-house tax expert Jason Kools and sales engineer Amber Manual. This comprehensive session delved into the intricacies of 1099 reporting, addressing the various forms, common filing errors, compliance updates, and the role of technology in simplifying these processes.
Watch the full webinar above or download the complete webinar deck here.
Jason Kools provided an insightful overview of the essential 1099 forms for businesses. Attendees learned about various forms including the 1099-MISC form used for reporting miscellaneous income like fees and commissions, the 1099-NEC for non-employee compensation over $600, and the 1099-DIV for reporting dividends from investments. These forms are crucial for accurate financial reporting and compliance.
A key focus was the upcoming changes in e-filing requirements, effective from January 1, 2024. The threshold for e-filing is set to lower from 250 forms to just 10, impacting a broader range of businesses. The IRS's new Information Return Intake System, designed to facilitate this increase in e-filing, was also discussed. Jason noted the necessity of a Transmitter Control Code (TCC) for accessing this system, a requirement waived if filing through a partner like Greenshades.
The audience also learned about the common challenges in 1099 filing, emphasizing the importance of correct timing. Filing too early or too late can lead to processing delays or fines. It is also important to verify Taxpayer Identification Numbers (TINs), which must be accurately provided on all tax-related documents. Additionally, correct vendor addresses are essential to avoid delays in the delivery of year-end forms like W-2, 1099, or 1095c, especially if you rely on postal delivery.
Participants gained insights into how tax filing software can significantly streamline the tax process. They learned that employing a comprehensive checklist, which not only verifies information but also sends timely alerts for deadlines and conducts essential compliance checks like verifying Social Security Numbers and TINs, can greatly enhance both the efficiency and accuracy throughout the filing season.
The webinar concluded with a reminder of the importance of determining the correct 1099 forms, staying on top of filing deadlines, and partnering with expert year-end technology providers like Greenshades to reduce errors and avoid penalties.
If you're interested in leveraging Greenshades' to enhance your year-end form filing season, reach out to us today.