Posts Tagged ‘1099’

President Signs Repeal of Expanded 1099 Requirements

Friday, April 22nd, 2011

On Thursday, President Barack Obama signed into law the Comprehensive 1099 Taxpayer Protection and Repayment of Exchange Subsidy Overpayments Act of 2011 (HR 4; 1099 Act), which repeals both the expanded Form 1099 information reporting requirements mandated by last year’s health care legislation and also the 1099 reporting requirements imposed on taxpayers who receive rental income enacted as part of last year’s Small Business Jobs Act (PL 111-240). The Senate approved the bill on April 5, and the House voted in favor of it on March 3.

Read More » [Journal of Accountancy]

Tax records: Save them or Shred them?

Friday, April 22nd, 2011

Tax day is over. Now it’s time to find the top of your desk.

If you’re like most people, your home office is littered with 1099s, W-2s, letters from charities and other detritus used to prepare a tax return. Most of us are terrified to dispose of these documents, and for good reason: In an IRS audit, “The dog ate my credit card receipt” is not an excuse. It’s not necessary to hang on to everything. In fact, keeping too many documents could make it difficult to find what you really need. Here’s a look at what you should save and what you can shred:

Read More » [USA Today]

IRS Audit Red Flags: The Dirty Dozen

Friday, January 7th, 2011

Here are twelve hot spots on your return that can raise the chances of scrutiny by the IRS.

Ever wonder why some tax returns are audited by the IRS while most are ignored? Well, there’s a whole host of reasons to this age-old question. The IRS audits only about 1% of all individual tax returns annually. The agency doesn’t have enough personnel and resources to examine each and every tax return filed during a year.

Read full article » [Kiplinger]

Rental Property Owners must issue 1099’s for certain 2011 expenses

Wednesday, January 5th, 2011

Update – President Signs Repeal of Expanded 1099 Requirements

Part of the recently passed Health Care Act contains a provision which will require rental property owners to start issuing 1099 forms for certain goods and services claimed as rental expenses. Starting in 2011, if an owner pays more than $ 600 per year to a single contractor or service provider the recipient (and the IRS) must be sent a properly completed 1099 form or the deduction may be disallowed.

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