Get to Know the 1099s You Can E-file with ExpressIRSForms

If you’re looking to file a 1099 Form, then look no further because you’ve come to just the right place! ExpressIRSForms is a leader in the 1099 e-filing industry and provides stress-free, IRS-authorized e-filing.

Form 1099 has a few important deadlines coming up now that the 2016 tax filing season is in full swing. Recipient copies of Form 1099 must be postmarked and mailed to your recipients by January 31, 2017. If you’re paper filing, you’ll need to have your forms to the IRS by February 28, 2017. If you’re going the easier route and e-filing, you have until March 31, 2017.

So now that you know when to file, check out your options for filing Form 1099 with ExpressIRSForms:

Form 1099-MISC
Form 1099-MISC is used to report miscellaneous income received by an individual for services other than a wage-paying job. In other words, this form is used to report payments rendered to non-employees, like sub-contractors, renters, prize winners, etc.

Those filing Form 1099-MISC this year for the 2016 tax year will need to pay special attention to its new deadline. If you’re filing Form 1099-MISC to report non-employee compensation in box 7, the form is due to your recipient and the IRS by January 31, 2017.

Form 1099-INT
Form 1099-INT is used to report payments on interest income of $10 or more. Generally, this form is filed by banks or financial, mutual fund, or government institutions. There are certain exemptions for Form 1099-INT, however. You’re exempt from filing one for payments made to payees that are

• US agencies or states or possessions, including Washington, D.C.
• Corporations or tax-exempt organizations
• Archer MSA or Medicare Advantage MSA
• Health savings accounts (HSA) or Individual Retirement Accounts (IRA)
• Registered securities or commodities dealers, nominees or custodians, brokers, or notional principal contract (swap) dealers

Form 1099-DIV
Form 1099-DIV is for dividends and distributions. It’s provided to investors by bankers and other financial institutions to report dividends and other distributions, like capital gains and exempt-interest dividends, of over $10 to payees and the IRS. There are only two exceptions for filing Form 1099-DIV and they are:

• Taxable dividend distributions from life insurance contracts and employee stock ownership plans. These distributions should be reported on Form 1099-R.
• Payments received by a broker resulting from a loan of a customer’s securities, which are reported on Form 1099-DIV.

Form 1099-R
Form 1099-R is used to report distributions from pensions, annuities, retirement or profit-sharing plans, IRAs, insurance contracts, etc. of $10 or more during the year. Most public and private pension plans not included in the Civil Service System can use Form 1099-R to report as well. Additionally Form 1099-R can be used to report certain death benefit payments from employers and disability payments from retirement plans.

Can’t Forget the Corrections
While we have every feature in place to ensure your filing is error-free the first time around, it never hurts to have back-ups. That’s why we also offer e-filing for Form 1099 corrections. And even if you didn’t initially file with us, you can still file corrections easily with ExpressIRSForms.

Corrections should be filed as soon as you notice the error or receive word that the IRS did. There are two types of corrections that can be made:

• Type 1: incorrect tax amount(s), code, checkbox, payee name, or to void a return.
• Type 2: missing/incorrect payee TIN, incorrect name or address, or the return was filed on the wrong form.

Form 1096
Typically, when Form 1099 is sent to the IRS via postal mail, a transmittal Form 1096 must accompany it. When you e-file, Form 1096 isn’t required. However, since you may need a copy for your records, when you e-file with ExpressIRSForms, we generate a copy based on the forms you file, which you can access in your account’s print center at any time.


For questions about e-filing any of these forms, please don’t hesitate to reach out to our customer support team. We’re available by phone (704-684-4751) and live chat Monday through Friday, 9:00 a.m. to 6:00 p.m. EST. We also provide 24/7 assistance at support@ExpressIRSForms.com!

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E-filing 1099s for Your Independent Contractors

Did you know that by the year 2020, nearly half of America’s workforce (40%) will be made up of independent contractors? And if you look at the ExpressIRSForms numbers, that’s no surprise: a majority of the forms we process and transmit to the IRS are 1099s (the independent contractor version of a W-2 form). But whether someone is considered an independent contractor or an employee in the eyes of the IRS isn’t always as black and white as it may sound. So sit back and take a listen to what makes your contractors so independent that you have to file a Form 1099.

Independent Contractors: What are They?
There are three categories the IRS looks at when considering whether or not the person you’re filing for is an independent contractor:

• Behavioral: Do you control how, when, and where this person works?
• Financial: Do you provide necessary tools, reimburse expenses, or pay a salary to this worker?
• Relationship: Is this worker essential to daily operations of your business?

If your answers are mostly “yes” to these questions for a certain worker, the IRS considers that worker to be an employee, not an independent contractor. Typically, you’ll establish the status of your worker when you hire him/her, but these questions are good to keep in mind during filing time.

Still Not 1099% Sure?
If you need further classification on the differences between independent contractors and employees, you may need to consult with a tax or legal professional. The IRS also offers Form SS-8, which you can send to the IRS and, within six months, they’ll return it with the classification of your worker(s).

Misclassifying Workers
It’s important to make sure you know the status of your worker before you file anything for him/her, because the IRS isn’t too lenient when it comes to misclassifications. If you classify an independent contractor as an employee (or vice versa), you become liable for any:

• unpaid Federal, State, and Local Income Tax,
• Social Security & Medicare contributions,
• unpaid Workers’ Compensation, and
• Unemployment Insurance Premiums.

Additionally, beginning with the 2015 tax year, anyone with 50 or more employees who misclassified those employees will be assessed an additional penalty of $2,000 per employee.

E-filing Form 1099
So you’ve determined your workers are independent contractors, and you need to file a Form 1099-MISC (the miscellaneous revenue 1099 form) to report their wages. Now, all you need to do is e-file them with ExpressIRSForms, the most user-friendly IRS-authorized e-filing program around! Just log into your free account, select the big, orange Start New Form button, and the program takes you through the steps of quickly and easily transmitting your 1099 forms directly to the IRS.

Uhh...Whoops?
If you realize you filed a W-2 when you should have filed a 1099, then it’s time to act. If it hasn't been long since you hit the Transmit button, click the Correction button next to the incorrect form, and our program will be able to recall your form, which will then show as Unsubmitted on your Dashboard. You can then delete that form and file the correct 1099. If your form was already submitted to the Social Security Administration (SSA), you’ll need to contact the W-2 hotline for cancelations, 1-800-772-6270, and they can direct you on how to proceed.

If you filed a 1099 when you should have filed a W-2, you can try to recall your form like in the example above. If your form has already been sent to the IRS, you can e-file a 1099 correction to void the 1099 before e-filing the correct W-2 form.

The Customer Support Spiel
If you have any questions about e-filing, or employee/independent contractor classifications, you can get in touch with our friendly, US-based customer support team. We’re available by phone (704-839-2270) and live chat (www.expressirsforms.com) Monday through Friday, 9:00 a.m. to 6:00 p.m. EST. You can also send us an email anytime at support@expressirsforms.com.

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Miss the Paper Filing Deadline?

As many of our regular readers should know (we’ve only been posting about it all month), the paper filing deadline form 1099 and W-2 forms was this past Monday, February 29. For e-filers, it was just another Monday. But for scrambling, procrastinating paper filers, it was a Monday for the books.

Unfortunately, when it comes to leaving tasks until the last minute, other things tend to get in the way. And a lot of the time, only the very best of task-jugglers can pull off multiple last minute to-dos right before their deadlines. So what to do if you missed the paper filing deadline this past Monday?

First of all, don’t fret. If you’re not opposed to e-filing, just think of this as missing the practice test (that doesn’t count towards your grade) before the real exam. Sure, it might have helped to have gotten it done, but you’ve still got another chance to provide the information you have to the IRS.

If you decide to e-file instead of sending in your paper forms late, you don’t have to notify the IRS. All you have to do is e-file your forms by March 31, 2016. See? There're an extra 29 days to file without having to do anything at all! And you were going to start fretting.

BUT - and this is an MC Hammer sized “but” - if you’re staunchly against e-filing, you’ll need to complete and send in your paper forms AS SOON AS POSSIBLE because the IRS penalties have already begun.

You see, the IRS fines you for late forms based on when the forms are eventually, correctly, filed. If you get your forms filed within the first 30 days after your deadline (so, by March 29), you’ll only owe $50 per form. If you miss the 30-day deadline but file before August, your penalty goes up to $100 per form. And if you don’t file until after August 1 (or not at all), the IRS can charge you up to $260 per form. The maximum amount you can be fined by the IRS for late filing is $3,193,000 per year ($1,064,000 for small businesses).

Other than e-filing or paper filing as soon as possible, there’s not much else you can do to fix the fact that you’re filing late. There is, however, a small loophole in this whole late-filing-penalty-incurring process. Straight from the horse’s mouth (a.k.a. the IRS website):

“The penalty will not apply to any failure that you can show was due to reasonable cause and not to willful neglect...you must be able to show that your failure was due to an event beyond your control...You also must be able to show that you acted in a responsible manner and took steps to avoid the failure.”

In other words, get that excuse ready - and try to be a little more creative than just blaming the dog - because it could be the difference between paying $50 to $260 per form and paying $0 per form.

If you need help getting started e-filing, or have any questions about the tax filing deadlines, feel free to get in touch with ExpressIRSForms’s customer support team in Rock Hill, South Carolina. We offer support by phone, chat, and email, in English or Spanish, and we’re always happy to help!

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The 1099/W-2 Paper Filing Deadline is Coming Up

All right e-filers, it’s your turn to take the back seat on this one: our blog today contains information for the paper filers. True, ExpressIRSForms is an IRS-authorized e-file service provider, but we like to help all filers - big and small, young and old, paper and electronic - as best we can.

So, paper filers, now that we have your attention, it’s time to buckle down. You only have one week left to file your 1099 and W-2 forms with the IRS. Keep in mind you’ll need to include with your filing a transmittal form, either Form 1096 (with 1099s) or a W-3 Form 9 (with W-2s). If you have different types of Form 1099 to file (ex. 45 1099-MISC forms and 10 1099-INT forms), you’ll need a separate Form 1096 for each type of form.

And we don’t just have federal filing to think of here. You’ll need to know your state requirements. Most states’ paper filing deadlines are the same as the IRS, but some have already passed. And almost every state has a transmittal form or reconciliation requirement form that needs to be filed with your 1099s and W-2s. For more information about filing in your particular state, check out our 1099 and W-2 state filing pages, or contact your state Department of Revenue.

Now, sending your forms in is a little more in depth than just writing, “To The IRS, From Me,” on your envelope. You’ll need to send your forms to the appropriate IRS department, based on which form you’re filing and the state in which your principal business is done. W-2 filers in any state, you’ll send Copy A of Form W-2 with Form W-3 to:

Social Security Administration
Data Operations Center
Wilkes-Barre, PA 18769-0001

Form 1099 filers in AL, AZ, AR, CT, DE, FL, GA, KY, LA, ME, MA, MI, NH, NJ, NM, NY, NC, OH, PA, RI, TX, VT, VA, or WV (or if you’re outside the US) need to mail their forms and Form 1096 to:

Department of the Treasury
Internal Revenue Service Center
Austin, TX 73301

Form 1099 filers in AK, CA, CO, D.C., HI, ID, IL, IN, IA, KS, MD, MI, MN, MO, MT, NE, NV, ND, OK, OR, SC, SD, TN, UT, WA, WI, or WY mail their forms to:

Department of the Treasury

Internal Revenue Service Center
Kansas City, MO 64999

If you’re a little behind, and this seems like a lot to take on in a week, you might want to consider e-filing. There’s no need to alert the IRS you’ll be e-filing instead of paper filing this year; and when you e-file, you automatically get an extra month to file (the e-filing deadline is March 31st). Plus, when you e-file, there’s no need to worry about those pesky 1096 or W-3 forms (although we will generate one for your records when you e-file).

And as always, if you need help filing your 1099s or W-2s (or ACA forms or W-9s), you can reach out to the fabulous ExpressIRSForms support team. Our phone (704-839-2270) and live chat hours are Monday through Friday, 9 a.m. to 6 p.m. EST, and we offer 24/7 email support at support@expressirsforms.com.

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E-filing is Open for 1099 Filers

If you’ve already been around the ExpressIRSForms block this year with recipient filing, then you know that the 1099s are ready to be e-filed. But if this is your first time joining us, you should know that the 1099s are ready to be e-filed! So now that we’re past that quick taste of déjà vu let’s get to know a little more about the 1099 Forms that are available to be e-filed through ExpressIRSForms.

Form 1099-MISC
Ahh, one of the classics. Form 1099-MISC, Miscellaneous Income, is filed each year if you paid someone at least $10 in royalties or broker payments or at least $600 in:

• rents,
• services done by a non-employee,
• prizes/awards,
• other income payments,
• medical/health care payments,
• crop insurance proceeds,
• cash payments for fish,
• cash paid from a notional principal contract,
• attorney payments, or
• any fishing boat proceeds.

Needless to say, a majority of the e-filing orders we get are for the 1099-MISC. It’s the most common of the 1099s, and one to keep in mind if you make any payments to independent contractors, attorneys, or fishermen.

Form 1099-INT
Our next form is intriguing, to say the least: Form 1099-INT, Interest Income. This form is filed each year for every recipient of at least $10 in interest income you have. Keep in mind that Form 1099-INT is for tax-exempt interest reporting only; any interest you need to report that is taxable needs to be reported on Form 1099-OID.

Form 1099-DIV
Coming in at number three is Form 1099-DIV, Dividends and Distributions. This form can be a bit tricky, and it’s filed by banks and other financial institutions for their investors. A Form 1099-DIV is filed for each investor:

• who was paid $10 or more in dividends and other distributions on stock,
• who was paid at least $600 as part of a liquidation,
• “for whom you have withheld and paid any foreign tax on dividends and other distributions of stock,”
• “for whom you have withheld any federal income tax on dividends under the backup withholding rules.”

Form 1099-R
New to ExpressIRSForms this year is Form 1099-R, *deep breath* Distributions From Pensions, Annuities, Retirement, or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. Form 1099-R reports various distributions over $10 of retirement benefits, like any of the ones listed in it’s long, long name.

Keep in mind that for your 2015 1099 forms, recipient copies were due February 1, paper forms are due February 29, and e-filed forms are due March 31. And if you have more than 250 of any one 1099 Form to file, you’re required by the IRS to e-file those forms.

If you have questions about the 1099 Forms or e-filing them with ExpressIRSForms, just get in touch with our friendly customer support team. We’re available from 9 a.m. to 6 p.m. EST, Monday through Friday, by phone (704-839-2270) and live chat. We also offer 24/7 email support at support@expressirsforms.com.

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Paper Filing vs. E-filing with ExpressIRSForms

February is a lull of a month for the 1099 and W-2 e-filers. With the recipient deadline behind us, and the IRS e-filing deadline not until March 31, it’s not unusual for e-filers to put their IRS reporting on the backburner. But if you plan to paper file, don’t switch out pans just yet.

The paper filing IRS deadline for 1099s and W-2s is February 29, 2016. That means you have 26 days to fill out all of those little boxes on your paper forms, then print, stamp, and mail them to the IRS. But before you waste all that paper in the name of “that’s how we’ve always done it,” consider your alternative: e-filing.

E-filers Get an Extra Month to File
If you e-file your 1099s or W-2s, your deadline to file with the IRS isn’t until March 31. Whereas if you paper file, your forms need to be into the IRS by the last day of February (since this year’s a leap year, that’s the 29th). You’d think it would be the other way around since paper filing takes more time, but since there’s more to be done on the IRS’s end to process paper forms, they require them a month earlier. Which brings me to my next point…

Paper Filing Takes More Time
Your time is important. And while you understand the importance of reporting your 1099s and W-2s to the IRS, that doesn’t mean you should have to spend a lot of time on it. When you paper file, you have to take the time to gather your information, print all the forms you’ll need, fill out those forms perfectly (otherwise you’ll get a fine), package them up and stamp them, then send them through the mail. And heaven forbid you make an error: you’ll have to wait on your mailed notice from the IRS, then fill out more forms to correct it, starting the process all over again.

When you e-file with a site like ExpressIRSForms, there’s nothing to print, stamp, or mail. You just sign in, create a new form, enter in your information, then hit transmit. You’ll get email confirmations when you transmit, when the IRS receives your form(s), and when they’re processed and accepted or rejected. And if you need to make any corrections, you just log into your account, find the form, correct it, and retransmit for free. Sounds much easier, doesn’t it?

E-filing Leaves Less Room for Error
Based on research the IRS has done, just less than 1% of e-filers make the common errors that result in penalties that 25% of paper filers make. If you paper file, your best bets for having someone double check your forms before you file are: taking your forms to a CPA (and paying their fee), taking your forms to a local IRS office (and waiting in line), or having your coworker who took an upper level accounting class in college look them over (and probably still making the same mistakes). With ExpressIRSForms, your forms go through a series of error checks before you transmit to make sure you file everything correctly the first time around.

Paper Filers May Have to E-file Anyway
Like it or not, if you have 250 or more of either the 1099 or W-2 forms to file, the IRS requires you e-file them. This is just as much for your convenience as it is theirs. I mean, have you ever tried to fill out over 250 forms? Stubbornness won’t pay out here either: if you paper file more than 250 of one form, the IRS will fine you for it.

ExpressIRSForms E-filers Get the Best Support Team in the Nation
Here all year long instead of just during tax season, the ExpressIRSForms support team is happy to answer any of your 1099, W-2, ACA, and W-9 e-filing questions. Located in Rock Hill, South Carolina, we offer support in English and Spanish, by phone, live chat, or email. You can send us a live chat or give us a call (704-839-2270) Monday through Friday, 9 a.m. to 6 p.m. EST, or send us an email 24/7 at support@expressirsforms.com.

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One Month Down, Two to Go!

Welcome, ExpressIRSFormssIRSForms users! This is the last January blog we have time for now that the first month of the 2015 filing season is drawing to a close. So what does that mean for the typical 1099, W-2, or ACA form filer?

For the Rest of January
Before January is completely behind us, make sure you’ve sent out your recipient forms for your 1099s and W-2s. The deadline to have these forms to your recipients is next Monday, February 1 (since January 31 is a Sunday). It’s a common misconception that your recipient forms only have to be postmarked by the deadline. But according to the IRS’s rules and regulations, you can be fined any time after the January 31 deadline (or, in this case, February 1) if a payee reports that they haven’t received their forms.

That’s why we’re recommending sending out your recipient forms by tomorrow or Friday (if you’re mailing them) to ensure they receive them by Monday.

Coming Up In February
During the month of February, there’s not much to do unless you’re either a) paper filing or b) getting a jump start on other forms due in March.

If you’re paper filing, you’ll need to have your 1099s and W-2s prepared and sent to the IRS by February 29, 2016. Remember if you have more than 250 of either form, however, that the IRS requires you e-file.

Looking Ahead to March
March 31, 2016 is the e-filing deadline for 2015 tax year 1099s and W-2s. March 31, 2016 is also the recipient deadline for 2015 ACA forms 1095-B and 1095-C. Normally, this deadline will be the same as the 1099 and W-2 recipient deadline, so don’t forget to send those out all at the same time next year.

Another deadline to keep in mind in March that you might not have been aware of is the March 15, 2016 Business Extension Form deadline. Form 7004 can be filed through our sister program, ExpressExtension, by businesses for a 5-6 month extension of time to file their tax returns. This is not an extension of time to pay any taxes owed, but it can get you a little more time to get everything in order to file.

If you need any help over the next two months, we’re here for you! Well, we’re here for you all year long, but we’re especially here for you during tax season. Just give us a call (704-839-2270) or send us a live chat Monday through Friday, 9 a.m. to 6 p.m. EST. Or you can send us an email anytime at support@expressirsforms.com!

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