Emerge Financial Group to Assist With 1099 Reporting

Forms 1099 are for reporting certain types of income other than wages, salaries, and tips, such as interest earned and consulting fees received. They are sent by payers and the IRS. There are many varieties, and each one is used for a specific type of income.

Some of these varieties include 1099-DIV for dividends, 1099-INT for interest, 1099-G for tax refunds, 1099-MISC for miscellaneous income, and 1099-R for pensions. As a tax, accounting, and financial services firm, Emerge Financial Group can answer any question relating to Forms 1099 and can offer different strategies and solutions to help individuals with their tax preparations. 

The most common Form 1099 is 1099-MISC, and it covers practically any kind of income. Consulting income or non-employee compensation goes under the 1099-MISC. Those in business, even as sole proprietors, may have to issue Forms 1099-MISC. 

Forms 1099 are very critical to an individual’s tax return. If it is not reported, individuals are almost guaranteed a tax notice or an audit. Since Forms 1099 are matched to Social Security numbers, the IRS can easily send a tax bill if they are not reported. 

Forms 1099 are to be mailed out by January 31^st, and most of them arrive by early February. Some companies, however, issue Forms 1099 when they issue checks throughout the year. The initial deadline is January 31^st, but the form issuers are not required to file all Forms 1099 with the IRS until the last day of February. Most companies take their time in filing their IRS copies. 

The one month delay can turn out to be very helpful, since during this time, individuals may be able to address errors if they receive a Form 1099 they believe is in error. If this is the case, they should contact the issuer about the error before it goes to the IRS. 

There are several things to remember when it comes to Forms 1099. One of them is that individuals need to make sure that payers have their correct address so they get a copy. Addresses may be updated directly with payers, but individuals should also file an IRS change of address Form 8822. 

It may be best not to ask for a Form 1099 if an individual does not receive one. This is because the payer may issue it incorrectly, or issue two—one they issued originally and one you asked for.

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Source: http://newswire.net/newsroom/pr/00091782-keith-towns-emerge-financial-group-to-help-with-irs-forms-1099.html