1099 Reporting

Member Guide to 1099-MISC & 1042-S on the AP & P2P Network

  Income paid in the calendar year other than wages, tips and salaries must be reported to the IRS on Forms 1099 and 1042-S. The following links lead to information and tools related to 1099-MISC and 1042-S reporting available to members on Accounts Payable & Procure-to-Pay Network. Definitions and Explanations BasicsForm 1099-Misc Filing Basics1099: What and Who... Read more »
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Responding to a 972CG Penalty Notice

If you filed an information return late, with the wrong TIN or none at all, you might receive a 972CG Penalty notice from the Internal Revenue Service. Recipients of a penalty notice have 45 days to respond and either pay the penalty or write an explanation as to why the penalty should be abated. It... Read more »
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Update: The Consolidated Appropriations Act and New Dates for 1099 Filing

Accounts payable professionals need to be aware of an important piece of new tax legislation that affects filing dates for IRS Forms 1099, the series of information returns used to report income types other than wages, salaries, and tips (Form W-2 is used for those). The 2016 Consolidated Appropriations Act combines federal government funding appropriations... Read more »
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Form 1099-Misc Filing Basics

  Contents Nonemployee compensationIndependent contractor or employeeTaxpayer identification numbers (TINs)Backup withholdingReporting exceptionsPayment to attorneysForm of filing and deadlinesStatements to recipientsCorrected returnsPenaltiesIRS Guide to Information ReportingNew dates for 1099 filing Introduction In addition to wages paid to employees and reported on Form W-2, Wage and Tax Statement, certain nonemployee compensation must be reported to the IRS,… Read more »

Update on IRS TIN Matching Program

The Internal Revenue Service (IRS) recently implemented corrections to its Taxpayer Identification Number (TIN) Online Matching Program. The changes took effect in November. TIN Matching is part of a suite of Internet-based pre-filing e-services that allows “authorized payers” the opportunity to match 1099 payee information against IRS records prior to filing information returns. Mary Kallewaard,... Read more »
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A New Take on Independent Contractor vs. Employee

By Pam Miller, APMD Independent contractor vs. employee—AP knows the IRS rules. AP has been determining which vendors are 1099-reportable—and which are not—for years now. As we know, control and relationship are determining factors: behavioral control, financial control, and the type of relationship established between the parties. But the IRS rules determining whether a potential... Read more »
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Responding Correctly to ‘B’ Notices

Companies that receive “B” Notices from the Internal Revenue Service (IRS) must respond in a timely and appropriate manner to avoid costly penalties. The IRS sends B Notices—technically referred to as CP2100 or CP2100A notices—in the spring and/or fall to payers (companies/organizations) that filed 1099 forms containing errors earlier in the year. “The IRS sends... Read more »
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Payers Are not Required to Report, on a Form 1099-MISC, Payments to a Government Payee

Form 1099-MISC payers are not required to report, on a Form 1099-MISC, payments made to a government payee, according to IRS Instructions for Form 1099-MISC, reminds Marianne Couch, Esq., Principal of Cokala. Government payees include the United States or any of its agencies or instrumentalities—as well as a state, the District of Columbia, a possession... Read more »
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IRS Voices Concerns About 1099 Processing

  The IRS reports that a recurring issue showing up in employment return tax audits is a failure of payers to backup withhold on 1099 reportable payments without TINs, reports 1099 expert Marianne Couch, JD, Principal, COKALA Tax Information Reporting Solutions, LLC. “This is one of the top concerns turned up by the IRS National... Read more »
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A Member Shares 1099 Compliance Tips

AP managers need to provide staffers with the tools and knowledge necessary to successfully and effectively manage 1099s. “Accuracy is critical, so while you need a level of trust that the work will be done effectively, you still need to verify the accuracy of employees’ work often,” stresses Tabitha L. Morgan, APM, Business Analyst, Memphis... Read more »
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