Have You Started Your 1099-M Tax Forms? Pay Now or Pay Later

File the 1099-M’s you must file, or now you pay penalties:

1099-M's are tax forms that the Internal Revenue Service, or the IRS, requires people to file if they have paid more than six hundred dollars to an independent contractor. The paperwork procedure for this type of tax form filing essentially consists of the small business owner or landlord that has hired the services of independent contractors for more than six hundred dollars will need to fill out their part of a 1099-M and send it to each of the contractors by the end of January. These contractors must then send the forms in to the agency by the end of February, although if they are filing each of the forms electronically, they have until the third of March.

                              

It is highly recommended to hire the services of a company that specializes in filing such forms because they will be able to ensure that the filing procedure is performed correctly. This could include making sure that there are no duplicate forms in the system, which would confuse the IRS and make them more likely to perform an audit. It is also highly recommended to purchase software that will be able to take each of the independent contractors to whom the 1099-M's are being sent and process them in the accounting system automatically. This will ensure that all of the necessary forms are sent out on time.

If the forms are not filed by the deadlines, there are certain penalties depending on how late each for was filed. Thirty dollars is charged for the first thirty days that a form is filed late, up until March 30, with a maximum charge of $250,000 per year. The second thirty days incurs a charge of sixty dollars with a maximum penalty of $500,000, and one hundred dollars if the charges are filed after August 1.

Essentially, to avoid having to pay these penalties, it is crucial for a small business or landlord to file the forms on time. Hiring the services or purchasing software that has been designed for such a purpose will make the overall procedure go much more smoothly, with less frustration.

 For More Information Please Visit - omgtax.com

What is an ITIN and who needs one?

What is an ITIN?

ITIN stands for Individual Taxpayer Identification Number. The IRS issues it to individuals who cannot get a Social Security Number but who must file federal tax forms, like aliens who earn income while in the US. ITIN is a nine-digit number, much like a SSN, but the first number starts in a “9.” 

What is Alien Status? 

Aliens are people from other countries who come to the US for education or work. For example, students, visiting teachers and foreign laborers are aliens. Their resident or non-resident status is determined by factors like length of time in the country. While in this country, they often earn income and the IRS requires they pay their taxes, just like regular citizens.

                                        

Who needs an ITIN? 

You need to get an ITIN if you make wages, tips or a salary while you are in the US. If you earn money from investments, receive gifts, or win prizes from US sources while you are in the US, you must file a federal income tax form, so you need an ITIN. In addition, if you make money form the sale of investments or other transactions in the US, you must file a federal income tax form. 

Everyone is required to file and pay his or her taxes. In many instances, an alien should want to file taxes because their employer withdrew taxes from their payroll check, and they are eligible for a refund. Without an ITIN number, they cannot file for a refund. 

The immigration status of aliens is of no interest to the IRS. The IRS collects taxes. They do not enforce immigration laws, but the IRS does expect people living in a gray area between alien and citizen status to pay their taxes. The OMG Tax Services have been dealing with the IRS and back taxes from over 50 years. They could impose fine on aliens who do not. 

Compliance 

Sources say that compliance with the tax laws of the US help aliens in transitional immigration status gain citizenship easier, and that non-compliance with the IRS could hurt the process of gaining citizenship. When an alien gets an ITIN number, it does not legitimize any claim to citizenship, but it might help aliens gain citizenship. If you pay your taxes in the US, the IRS likes you and that may help you become a citizen. For More Information Please Visit - omgtax.com