Informational Returns

regular gambling withholding

24% applicable when gambling winnings exceed $5000 for sweepstakes, wagering pools, or lotteries Poker tournaments are "wagering pools" For other wagering transactions (like blackjack or similar table games), regular gambling withholding does NOT apply unless winnings are AT LEAST $600 AND 300 times the amount wagered If withholding replies, a taxpayer who does not provide an SSN or TIN is subject to backup withholding

Form 1099-MISC, Miscellaneous Information

A business taxpayer uses this form to report certain business payments. Generally, payments to a corporation are excluded from this reporting requirement, but the exemption from reporting payments made to corporations does not apply to payments for legal services Common items include rents and prizes and awards of $600 or more, royalty payments of $10 or more, gross proceeds paid to an attorney of $600 or more, fish purchased for resale of $600 or more, any fishing boat proceeds, nonqualified deferred compensation of $600 or more

Form 1099-NEC, Nonemployee Compensation

A business taxpayer uses this to report payments of $600 or more (and the amount is fixed and determinable) for services performed for one's business by people NOT treated as employees, such as vendors, subcontractors, independent contractors, attorneys, accountants, or directors. Generally, payments made to a corporation are excluded from this reporting requirement, unless the payments are made to a corporation for attorneys' fees.

Form W-2, Wage and Tax Statement

After the calendar year is over, each employer must furnish copies of THIS to each employee who earned wages during the year. The employer must also send a copy to the Social Security Administration

Form W-2G, Certain Gambling Winnings

An organization conducting gaming activities must report certain gambling transactions to taxpayers and the IRS. This reflects winnings and federal tax withholding. In general, the gambling organization must use this if any tax is witheld or the taxpayer has winnings equivalent to the following: 1. bingo or slot machine: $1200 or more (NOT reduced by the wager) 2. keno: $1500 (reduced by the wager) 3. poker: more than $5000 (reduced by the wager) 4. all others: $600 or more AND at least 300 times the amount of the wager

payer made direct sales

totaling $5,000 or more, a taxpayer may either file NEC or MISC for sales of consumer products to a person on buy-sell, deposit-commission, or other commission basis for resale

Form 1099-NEC

used by a business taxpayer to report certain business payments These payments include payments of $600 or more for services performed for one's business by people NOT treated as employees, such as subcontractors, attorneys, accountants, or directors Generally, payments to a corporation are excluded from this reporting requirement, but payment to someone like an attorney is reportable payment to a corporation

Form 1099-INT, Interest Income

Financial institutions that pay interest must report details regarding those payments in the following circumstances: 1. the interest payments are at least $10. Certain types of interest have a higher threshold of $600 2. if the institution withheld and paid any foreign tax on interest 3. if the institution withheld and did not refund any federal income tax under the backup withholding rules regardless of the amount of payment

backup withholding rate

a business taxpayer reporting payments to a US person must withhold 24% from a payment that is subject to Form 1099 reporting if that person does NOT provide a TIN in the manner required OR if the IRS provides notification that the TIN furnished by the employee is incorrect, there has been a notified payee underreporting, or there has been a payee certification failure Generally, a person provides a TIN on Form W-9

attorney 1099-MISC and 1099-NEC difference

attorneys' fees paid to attorneys are reportable on 1099-NEC, but gross proceeds paid to attorneys are reportable on 1099-MISC The exemption from reporting payments made to corporations DOES NOT APPLY to payments for legal services. Therefore, a business that made payments to corporations that provide legal services must report gross proceeds paid to attorneys of $600 or more on Form 1099-MISC and must report attorneys' fees paid to attorneys of $600 or more on Form 1099-NEC

Form 1120

corporate income tax return NOT an information return

informationa return

tax document that businesses are required to file in order to report certain business transactions to the Internal Revenue Service Any person, including a corporation, partnership, individual, estate, and trust, with reportable transactions during the calendar year must file THESE to report those transactions to the IRS Persons required to file must also furnish statements to the recipients of the income Filers who have 250 or more returns must file the returns electronically The recipient of one of these does NOT send copies to the IRS unless required. A taxpayer must attach Form W-2 to the front of their Form 1040 series tax return. A taxpayer should also attach Forms W-2G and 1099-R, but ONLY if federal income tax was withheld

Form 1099-DIV, Dividends and Distributions

A corporation must generally send these forms to the IRS with Form 1096 BY FEBRUARY 28 of the year follwing the year of distribution. Generally, a corporation must furnish this form to shareholders by January 31 of the year following the close of the calendar year during which the corporation made the distributions It is necessary to file this with the IRS for each person in the corporation: 1. paid dividends (including capital gain dividends) and other distributions on stock of $10 or more, 2. withheld and paid any foreign tax on dividends and other distributions on stock, 3. withheld any federal income tax on dividends under the backup withholding rules, or 4. paid $600 or more as part of a liquidation

Form 1098, Mortgage Interest Statement

A person (or organization) engaged in a trade or business that receives at least $600 or mortgage interest (including certain points) on any mortgage in the calendar year must report the mortgage interest on this form to the payor and the IRS Report prepaid interest (other than points) only in the year in which it properly accrues. The form is not filed if the interest is received from a corporation, partnership, trust, estate, association, or company other than a sole proprietor

taxpayer form attachment

A taxpayer must attach Form W-2 to the front of their Form 1040 series tax return. A taxpayer should also attach Forms W-2G and 1099-R, but ONLY IF FEDERAL income tax was withheld The requirement to attach these is eliminated with electronically filed returns, but taxpayers should keep records of these attachments with their tax returns.

Form 1099-K, Payment Card and Third Party Network Transactions

Payment settlement entities (PSEs) are required to report on this form the following transactions: 1. all payments with cards 2. payments in settlement of third-party network transactions IF (in 2021): - gross payments to a participating payee exceed $20,000, AND - there are more than 200 transactions with the participating payee

Form 8300

Report of Cash Payments Over $10,000 in a Trade or Business provides information to the IRS and the Financial Crimes Enforcement Network (FinCEN) in their efforts to combat money laundering