Get Ready For 1099 Season
As the year draws to a close, it's time to gear up for the 1099 season. Whether you're a seasoned pro or a first-time filer, we're here to help you navigate the complexities of tax reporting. In this blog post, we've put together essential information and resources to ensure a smooth and stress-free 1099 season.
Understand Key Dates:
January 31, 2024: Deadline to send 1099-MISC and 1099-NEC forms (paper & electronic) to recipients.
February 28, 2024: Deadline for paper of 1099-MISC filing with the IRS.
March 31, 2024: Deadline for electronic filing of 1099-MISCwith the IRS.
Gather Necessary Information:
Collect W-9 forms from your owners and contractors, if not already done.(Consider using tools such as https://getw9.tax/ to request these form securely, keeping your owner and vendor data safe.)
Ensure you have accurate recipient details and Taxpayer Identification Numbers (TINs).
Choose the Right 1099 Form:
Use the 1099-NEC for non-employee compensation (this will be the form used to report payouts to contractors/vendors who provided a service)
Use the 1099-MISC for other types of payments, such as rent, royalties, and prizes (this will be the form used to report rent paid to your owners)
Stay Compliant:
Keep records of all payments to contractors.This includes payments made from your trust account as well as payments made from your operating account. There will likely be a few vendors that you’ll need to combine the totals paid from both systems to create one 1099. You don’t want to issue two 1099s to the same vendor, so this step is important.
Familiarize yourself with any changes in tax regulations.
E-Filing for Efficiency:
Consider e-filing with the IRS using the FIRE system. You can do this directly from Track!
Utilize IRS-approved e-filing services for a hassle-free experience, if you decide to not file from within Track, but using tools such as https://www.tax1099.com/.
Seek Professional Assistance:
If in doubt, consult with a tax professional or accountant.
They can help you navigate complex tax laws and ensure accurate filing.
Resources You Can Trust:
Plan for Next Year:
Implement systems to streamline the process for the next 1099 season
Ensure your owner and vendor tax information is updated in Track regularly
Attach their completed W-9s to the owner/vendor documents within Track
Request updated W-9 if you receive a notification from the IRS stating that there was a mismatch of any kind with the information they have compared to what was reported.
Contact Us:
Our team is here to assist with any questions or concerns you may have.
Remember, staying organized and informed is the key to a successful 1099 season. Don't let the process overwhelm you—be proactive, and you'll file with confidence.
Wishing you a smooth and stress-free 1099 season!
Disclaimer: This email is for informational purposes only and is not a substitute for professional tax advice. Always consult with a qualified tax professional for specific tax-related guidance.