It’s no secret that taxes can be complicated; whether you’re a business or a private citizen, it’s not easy navigating tax laws. Things get even worse when you’re unsure how to verify the information and you end up with unexpected fines from the Internal Revenue Service (IRS).
Errors in tax information reporting can lead to potentially costly mistakes. Every 1099 form transmitted to the IRS is a potential time bomb ready to blow up in your face if things aren’t handled properly.
The most common cause for 1099 reporting errors stems from mismatching recipient and payee names (contractors) with Tax Identification Numbers (TINs). If the name and TIN reported on a 1099 form don’t match up with the IRS database, an error occurs. One missing or incorrect digit or letter on a form can lead to an improper filing, which is all that it takes to trigger withholding and potential penalties.
We verify that your contractor’s business name and TIN match the IRS database. If there’s an issue, we will work directly with your contractors and walk them through the issue and provide resources if they are unsure of the proper information. Not only that, but we follow up with the contractor at least three times to ensure that the process is moving along on time and that the process is being completed as it should be. Even after the contractor completes the process, we check again to verify the accuracy of information resubmitted.
As with all of our services, we go above and beyond to make sure that things are handled correctly and that you are protected. If you’ve ever made use of any of our other services, such as our license tracking, insurance management, or contractor background screenings, you know just how seriously we take our roles, put you first and go the extra mile.
If you’re ready to optimize your contractor 1099 processing, reduce errors, and protect yourself and business from the IRS, contact us for a free consultation.
Errors in reporting inaccurate 1099-Misc forms during tax reporting time can potentially...Read More