Form 1042-S Basics for Small Business

If you are a US based company reporting income paid to a U.S. citizen, you would use one of several 1099 tax forms, such as a 1099-NEC or 1099-MISC. But what’s the protocol for reporting income paid to workers based elsewhere in the world? That answer is form 1042-S. The IRS deadline for both paper… Read more »

IRS Lowers eFile Threshold to 10 Forms for Tax Year 2023

IRS Lowers eFile Threshold to 10 Forms for Tax Year 2023 The Treasury Department and IRS announced changes this week to electronic filing requirements for a number of 1099 forms and Form 1042 (Annual Withholding Tax Return for U.S. Source Income of Foreign Persons). This notice provides final confirmation on the timeline for implementation of many… Read more »

You may have 2022 Affordable Care Act (ACA) state filings due. Is your organization ready?

In addition to federal ACA filing, it’s important to remember that some states have implemented their own mandates that require reporting employee health care coverage directly with the state. Applicable Large Employers (ALE) must also provide copies of 1095-C forms to their employees. Here are a few quick tips to help guide you through the… Read more »

A new experience is here is now part of the Sovos family of tax compliance solutions. Our depth of experience in 1099, W-2, and ACA reporting has been boosted with the knowledge and expertise of Sovos to deliver an even smoother eFiling experience for you. We’ve completed tax year 2022 form updates and made a number of improvements that… Read more »

IRS Delays 1099-K Reporting Threshold Changes until 2023

IRS Delays 1099-K Reporting Threshold Changes until 2023   The IRS issued Notice 2023-10, delaying the implementation of the 1099-K reporting threshold and transaction limit change until 2023. As a result, third-party settlement organizations (TPSOs) should only report 2022 Form 1099-K to payees when the aggregate of transactions was in excess of $20,000 paid over… Read more »

Demystifying ACA Reporting

Since the Affordable Care Act went into effect, sorting out the associated reporting obligations has continued to confuse many filers. We’ll attempt to clarify some of the questions in the following post. When it comes to understanding the reporting obligations associated with the ACA, knowing where the individual receives healthcare coverage is the first place… Read more »

What does a lower eFile threshold mean to you?

The Taxpayer First Act of 2019 authorized the Department of the Treasury and the IRS to issue regulations that reduce the 250 return requirement for electronic filing of information returns. The IRS has previously signaled that the eFile threshold would be reduced to 100 returns for tax year 2021 and 10 returns for tax year… Read more »

Form 1099-NEC & Direct to State Reporting

In 2020, 1099-NEC was resurrected to replace box seven on Form 1099-MISC. This means the 1099-NEC is now the form for reporting non-employee compensation for services amounting to $600 or more. As a result, this form has had a significant impact on all types of businesses and their 1099-MISC reporting processes. With the initial release… Read more »

3 Tips for More Successful 1099 Reporting

Tax information reporting and withholding requirements are constantly changing. You cannot assume that specific requirements will stay the same from one year to the next (or be the same from one state to the next). Here are three keys to staying on top of your 1099 reporting: The IRS and state Departments of Revenue (DOR)… Read more »