How Will the Health Care Bill Affect Your Taxes?

By Holly · Comments (0)
Thursday, April 22nd, 2010

On March 23, 2010, President Obama signed into law the new health care legislation.  The legislation will affect virtually every individual in one way or another and will significantly impact tax returns in the future.  The following overview of the tax-related provisions of the legislation is based upon the House of Representatives’ version and the one signed by President Obama on March 24, 2010.  At the time this article was prepared, the Senate was taking up the measure, but it is expected to pass without changes since only a simple majority is required.
• Penalty For Not Being Insured – Beginning in 2014, taxpayers will be penalized for failing to maintain the minimum essential coverage.  The penalty will be phased in beginning in 2014 and the fully-implemented penalty in 2016 will be the greater of:

  • 2.5% of household income over the threshold amount of income required for income tax filing, or
  • $695 (indexed for inflation after 2016) per uninsured adult in the household ($348 if under age 18).

Maximum Penalty – The total household penalty cannot exceed 300% of the per-adult penalty ($2,085) or national annual premium for the “bronze level” health plan offered through the Insurance Exchange that year for the household size.  Penalties are based upon the months that the required insurance is not in force.

Penalty Phase-In – The maximum penalty will not be imposed until 2016.  The phase-in rates are:

2014           2015
Per-adult annual penalty                  $95            $325
% of income penalty                           1%               2%
Family maximum                              $285           $975

Taxpayers Exempt from the Penalty – Individuals are exempt from the penalty if either their employer’s sponsored coverage or the lowest cost “bronze” coverage exceeds 8% of household income.  Also exempt are individuals residing outside of the U.S., those exempted for religious purposes, and those whose income is below the threshold for having to file a return.

• Low-Income Health Exchange Participation Credits – Beginning in 2014, tax credits will be available for low-income individuals and families with incomes up to 400% of the federal poverty level that are not available for Medicaid, employer-sponsored insurance, or other acceptable coverage.  To qualify for the credits, these individuals and families would have to obtain coverage in the newly-established insurance exchange.  Based upon the current poverty levels, the credit would phase-out at $42,420 for individuals and $88,200 for a family of four.  Additionally, a cost-sharing subsidy will be provided for low-income individuals to help pay for their coverage.

• Large Employer Responsibilities – Beginning in 2014, large employers, generally those with 50 or more full-time employees in the prior calendar year, that:

  • Do not offer coverage for all its full-time employees,
  • Offer minimum essential coverage that is unaffordable, or
  • Offer minimum essential coverage where the plan’s share of the total allowed cost of benefits is less than 60%,

Would be required to pay a penalty if any of its full-time employees were certified to the employer as having purchased health insurance through a state exchange and qualified for either tax credits or a cost-sharing subsidy discussed previously.

Penalty – The excise tax penalty for any month would be $167 times the number of full-time employees in excess of 30.

• Free Choice Vouchers – Beginning in 2014, employers who offer minimum essential coverage through an eligible employer-sponsored plan and pay a portion of that coverage will be required to offer an equivalent value voucher, allowing a qualified employee the option of purchasing coverage through the Insurance Exchange.  An employee qualified to make this choice is an individual with a required contribution to the employer plan that exceeds 8%, but does not exceed 9.5% of the household income and has income that does not exceed 400% of the poverty line for the family.

• Tax Credits for Small Employers Offering Health Coverage – For tax years 2010 through 2013, qualified small employers, generally those with no more than 25 full-time employees with an average annual full-time equivalent wage of no more than $50,000, will be eligible for a tax credit of up to 35% of the cost of non-elective contributions to purchase health insurance for its employees.  The maximum credit is available to employers with no more than 10 full-time equivalent employees with an annual full-time equivalent wage from the employer of less than $25,000.

2014 and Later – In 2014 and later, eligible small employers who purchase coverage through the Insurance Exchange would be eligible for a tax credit for two years of up to 50% of their contribution.

• Dependent Coverage – Effective March 23, 2010, the exclusion for reimbursements for medical care expenses under an employer-provided accident or health plan to any child of an employee is extended to children who have not attained age 27 as of the end of the tax year, provided the child also is eligible to be claimed as a dependent for tax purposes.

• Excise Tax on High-Cost Employer-Sponsored Health Coverage – Beginning in tax year 2018, there will be a 40% non-deductible excise tax on insurance companies and plan administrators for any health coverage plan where the premiums exceed the following amounts:

Single Coverage:                                                                                             $10,200
Single Coverage, high-risk employment or retired age 55 and older:  $11,850
Family Coverage:                                                                                             $27,500
Family Coverage, high-risk employment or retired age 55 and older:  $30,950

The tax would apply to self-insured plans and plans sold in the group market, but not to plans sold in the individual market (except for coverage eligible for the deduction for self-employed individuals).  Stand-alone dental and vision plans would be disregarded in applying the tax.  The dollar amount thresholds may be later adjusted for inflation.

• Employer W-2 Reporting Responsibilities – Beginning in tax year 2011, employers will be required to disclose the value of the benefit provided by them for each employee’s health insurance coverage on the employee’s annual Form W-2.

• Taxpayers Earning Over $200,000 – Beginning in 2013, higher-income taxpayers will be subject to the following additional taxes:

  • Additional Hospital Insurance Tax – The Hospital Insurance (HI) tax rate (currently at 1.45%) would be increased by 0.9 percentage points on an individual taxpayer earning over $200,000 ($250,000 for married couples filing jointly).
  • Surtax on Unearned Income – A 3.8% surtax, called the Unearned Income Medicare Contribution, would be placed on the net investment income of a taxpayer earning over $200,000 ($250,000 for a joint return).  Net investment income includes interest, dividends, royalties, rents, gross income from a trade or business involving passive activities, and net gain from disposition of property (other than property held in a trade or business).  “Net” investment income is investment income reduced by allowable investment expenses. Distributions from qualified retirement plans and IRAs will not be subject to the surtax.

• Employer Flexible Health Spending Plan Contributions Limited – Beginning in 2013, the maximum that can be contributed to an employer’s health flexible spending accounts (FSAs) would be limited to $2,500 per year.  The amount will be indexed for inflation after 2013.

• Over-the-Counter Medication Restriction for Employer-Provided Plans – Beginning in 2011, over-the-counter medications, except for doctor prescribed over-the-counter medication and insulin will no longer qualify for reimbursement.  This restriction applies to health reimbursement accounts (HRAs), health flexible savings accounts (FSAs), health savings accounts (HSAs), and Archer medical savings accounts (MSAs).

• Increased Tax on Nonqualifying HSA or Archer MSA Distributions – Beginning in 2011, the additional tax for HSA withdrawals for other than qualified medical expenses before age 65 are increased from 10% to 20%, and the additional tax for Archer MSA withdrawals for other than qualified medical expenses is increased from 15% to 20%.

• Medical Itemized Deductions Limited – Beginning in 2013, the itemized deduction for medical expenses will be limited in the following manner:

o AGI Threshold – The AGI threshold for claiming medical expenses on a taxpayer’s Schedule A is increased from 7.5% to 10%, which is the same as the current alternative minimum tax (AMT) rate.  Individuals (and their spouses) age 65 and older will continue to use the 7.5% rate through 2016.

o Deduction for Employer Part D would be Eliminated – The deduction for the subsidy for employers who maintain prescription drug plans for their Medicare Part D eligible retirees is eliminated.

• Expansion of Information Return Reporting – Currently a business paying more than $600 per year to a noncorporate service provider who isn’t an employee is required to file an information return (Form 1099-MISC). The new law expands the return filing requirement to include both corporate and noncorporate providers of property and services, beginning with tax years beginning in 2011.

• Adoption Credit Limit Raised, Made Refundable and Extended – One of the non-health care related items included in the new law is an increase in the dollar limitation for the adoption credit to $13,170 (adjusted for inflation after 2010) and an extension of the credit through 2011. The credit also is changed from being nonrefundable to a refundable credit.

If you have questions related to taxes associated with the new health care bill, please give this office a call at 888-564-5777.

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Categories : Tax Information
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Expensing Limits Boosted For 2010

By Holly · Comments (0)
Tuesday, April 20th, 2010

Generally, taxpayers can elect under Sec. 179 to expense the cost of business machinery and equipment placed in service during the tax year, instead of depreciating it over a number of years.  As part of the stimulus legislation, these amounts had been temporarily increased for 2008 and 2009 and were scheduled to return to normal levels in 2010.

The HIRE Act of 2010 has extended the higher amounts for one additional year (through 2010).  Thus, for tax years beginning in 2008 through 2010, the maximum amount that can be expensed each year is $250,000.  The maximum deductible expense is reduced (i.e., phased out, but not below zero) by the amount by which the cost of property placed in service during the tax year exceeds $800,000.

Qualifying property for purposes of the expensing election is depreciable, tangible personal property purchased for use in the active conduct of a trade or business, including “off-the-shelf” computer software placed in service in tax years beginning before 2011.

Barring any additional legislation, the maximum amount will drop approximately to $134,000 in 2011.

If you have questions related to expensing purchases and the tax benefit of business acquisitions during 2010, please give this office a call at 888-564-5777.

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Categories : Bookkeeping
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Husband and Wife Businesses

By Holly · Comments (0)
Wednesday, April 14th, 2010

One of the advantages of operating your own business is hiring family members.  However, the employment tax requirements for family employees may vary from those that apply to other employees.  Below are some issues to consider when operating a husband and wife business.

How spouses earn Social Security benefits – A spouse is considered an employee if there is an employer/employee type of relationship, i.e., the first spouse substantially controls the business in terms of management decisions and the second spouse is under the direction and control of the first spouse.  If such a relationship exists, then the second spouse is an employee subject to income tax and FICA (Social Security and Medicare) withholding.  However, if the second spouse has an equal say in the affairs of the business, provides substantially equal services to the business, and contributes capital to the business, then a partnership type of relationship exists and the business’s income should be reported as a partnership on IRS Form 1065 or as a qualified joint venture (see below).

Both spouses carrying on the trade or business – A provision of the tax code generally permits a qualified joint venture whose only members are a husband and wife filing a joint return not to be treated as a partnership for Federal tax purposes.  A qualified joint venture is a joint venture involving the conduct of a trade or business, if: (1) the only members of the joint venture are a husband and wife, (2) both spouses materially participate in the trade or business, and (3) both spouses elect to have the provision apply.

Under the provision, a qualified joint venture conducted by a husband and wife who file a joint return is not treated as a partnership for Federal tax purposes.  All items of income, gain, loss, deduction and credit are divided between the spouses in accordance with their respective interests in the venture.  Each spouse takes into account his or her respective share of these items as a sole proprietor.  Thus, it is anticipated that each spouse would account for his or her respective share on the appropriate form, such as Schedule C.  For purposes of determining net earnings from self-employment, each spouse’s share of income or loss from a qualified joint venture is taken into account just as it is for Federal income tax purposes under the provision (i.e., in accordance with their respective interests in the venture).

This generally does not increase the total tax on the return, but it does give each spouse credit for social security earnings on which retirement benefits are based.  However, this may not be true if either spouse exceeds the social security tax limitation.

One spouse employed by another – If your spouse is your employee, not your partner, you must pay Social Security and Medicare taxes for him or her.  The wages for the services of an individual who works for his or her spouse in a trade or business are subject to income tax withholding and Social Security and Medicare taxes, but not to FUTA tax.

If you have questions related to the tax treatment of your specific husband and wife business, please give this office a call at 888-564-5777.

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Categories : Business
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2010 Brings Increased Deduction for Domestic Production Activities

By Holly · Comments (0)
Thursday, March 25th, 2010

The domestic production deduction was created to encourage manufacturing and production within the U.S., and it provides a substantial business deduction equal to 9% (up from 6% in 2009) of the lesser of:

  1. the taxpayer’s net income from qualified production activities or
  2. the taxable income (modified adjusted gross income for individual taxpayers) without regard to this deduction for the tax year.

The deduction is further limited to 50% of the W-2 wages of the employer for the tax year allocable to the activities eligible for the deduction.

Domestic Production Activities – Although the definition of “domestic production activity” is a little elusive, it generally does not include retail sales or purely service activities. Among the more common eligible activities are:

  • manufacturing and production activities in whole or in significant part within the U.S.,
  • construction of real property in the U.S., and
  • performance of engineering or architectural services in the U.S. in connection with real property construction projects in the U.S.

The following example, one that was used in a Congressional hearing, does a good job of defining what is and is not a qualified domestic production activity: Suppose you are a baker and in the business of producing donuts. Some of the donuts you sell retail directly to the consumers, and some you sell in bulk to hotels and restaurants. The production costs of the donuts sold at retail do not qualify for the deduction, while the costs associated with the wholesale sales to the hotels and restaurants do.

Computing the Deduction – The following is an example of how this deduction works: Suppose your business manufactures a product that you wholesale to retailers. Your net income from sales of that product for the year is $800,000, and the wages you paid to your employees to manufacture that product totaled $200,000. Your deduction for 2010 would be the lesser of 9% of the $800,000 in revenue or 50% of the $200,000 wages. Thus, the domestic production activities deduction for your business would be $72,000 (.09 x $800,000). The deduction is allowed for both regular and alternative minimum tax purposes.

Who Gets the Deduction – This deduction is allowed to all taxpayers, including individuals, C corporations, farming cooperatives, estates, trusts, and their beneficiaries. The deduction is allowed to partners and owners of S corporations (not to partnerships or the S corporations themselves) and may be passed by farming cooperatives to their patrons. And, despite the deduction’s history, it is fully available to taxpayers who do not export.
The foregoing is only an overview of this deduction. If you have questions related to how the domestic production deduction might apply to your specific circumstances, please give this office a call at 888-564-5777.

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Categories : Tax Information
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The New Vehicle Sales and Excise Tax Deduction

By Holly · Comments (0)
Tuesday, March 23rd, 2010

If you purchased a new vehicle in 2009, you may be entitled to a special tax deduction for the sales and excise taxes on your purchase.

Here is some important information you should know about this deduction:

  1. State and local sales and excise taxes paid on up to $49,500 of the purchase price of each qualifying vehicle are deductible.
  2. If a vehicle costs more than $49,500, you still receive a deduction for a prorated amount of sales tax and excise taxes.
  3. You can deduct the sales tax for more than one vehicle purchased during the year.
  4. Qualified motor vehicles generally include new cars, light trucks, motor homes and motorcycles.
  5. To qualify for the deduction, the new cars, light trucks and motorcycles must weigh 8,500 pounds or less.  New motor homes are not subject to the weight limit.
  6. Purchases must have occurred after Feb. 16, 2009, and before Jan. 1, 2010.
  7. Purchases made in states without a sales tax — such as Alaska, Delaware, Hawaii, Montana, New Hampshire and Oregon — may also qualify for the deduction. Taxpayers in these states may be entitled to deduct other qualifying fees or taxes imposed by the state or local government.  The fees or taxes that qualify must be assessed on the purchase of the vehicle and must be based on the vehicle’s sales price or as a per unit fee.
  8. This deduction can be taken regardless of whether the buyers itemize their deductions or choose the standard deduction.  Taxpayers who do not itemize can add this additional amount to the standard deduction on their 2009 tax return.
  9. The amount of the deduction is phased out for taxpayers whose modified adjusted gross income is between $125,000 and $135,000 for individual filers and between $250,000 and $260,000 for joint filers.

If you purchased a car in 2009 and have questions about how this deduction will affect you, please give this office a call at 888-564-5777.

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Categories : Bookkeeping, Tax Information
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Substantial Penalty for Late Partnership and S-Corporation Returns

By Holly · Comments (0)
Thursday, March 18th, 2010

Income from both partnership and S corporation returns passes through to the partners or stockholders. Therefore, filing these returns late creates hardships for the partners or stockholders to timely meet their own filing obligations. As a result, the government has imposed some substantial penalties for failure to timely file partnership and S corporation returns.

The penalty is a statutory dollar amount times the number of partners or shareholders for each month (or fraction of a month) that the failure continues, up to a maximum of 12 months. The base amount on which a penalty is computed is $195 per partner or shareholder for returns due for tax years starting in 2010. This is a substantial increase from the previous amount of $89 per partner or shareholder that applies if the entity’s tax year began in 2009. As an example, if your partnership files its 2010 return late and has four partners, the penalty will be $780 ($195 x 4) per month. The IRS may waive the penalty if there is reasonable cause for the late filing.

If you have questions relating to the above, please give this office a call at 888-564-5777

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Categories : Tax Information
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Many Business Tax Breaks Expired at the End of 2009

By Holly · Comments (0)
Tuesday, March 16th, 2010

Although there is some talk of extension, unless Congress acts to retroactively restore them, the following business tax breaks that expired on December 31, 2009 will not be available in 2010:

  • The additional first-year 50% bonus depreciation for qualified property, generally equipment, machinery, electronics, etc.
  • The $8,000 increase in the first-year depreciation limit for passenger automobiles used in business
  • The Sec 179 expense deduction for 2010 is substantially reduced. The maximum amount that may be expensed is $134,000 (down from $250,000 for 2009). The maximum annual expensing amount generally is reduced dollar-for-dollar by the amount of property placed in service during the tax year in excess of $530,000 (down from $800,000 in 2009).
  • The five-year depreciation for farming business machinery and equipment
  • The fifteen-year straight-line cost recovery for qualified leasehold improvements, qualified restaurant buildings and improvements, and qualified retail improvements
  • The credit for construction of new energy-efficient homes (this provided a credit up to $2,000 for site-built homes and $1,000 to $2,000 for manufactured homes)
  • The enhanced (greater than cost) charitable deduction for contributions of food inventory by a non-corporate taxpayer from its trade or business of apparently wholesome food inventory for the care of the ill, needy, or infants
  • The enhanced charitable deduction for contributions of book inventories to public schools
  • The enhanced deduction for corporate contributions of computer equipment for educational purposes
  • The seven-year straight-line cost recovery period for property used for land improvement and support facilities at motorsports entertainment complexes
  • The film and television producers’ election to expense the first $15 million of production costs incurred in the U.S. ($20 million if the costs are incurred in economically depressed areas in the U.S.)
  • The credit for eligible small business employers equal to 20% of the sum of differential wage payments to activated military reservists

If you have questions relating to any of the above, please give this office a call at 888-564-5777

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Categories : Tax Information
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Little-Known – But Important – Credit Card Rules for Merchants

By Holly · Comments (0)
Thursday, March 11th, 2010

Businesses that accept credit and debit cards must comply with privacy laws that aim to protect customer identity.  There are regulations that even the most seasoned of merchants aren’t always aware of.  It’s important for merchants, as well as consumers, to be aware of these little-known credit card rules to protect themselves and their information.

Stay Compliant with Federal Laws – The Fair Credit Reporting Act is the federal law that establishes the foundation of consumer credit rights. This law regulates the collection and use of consumer credit information by merchants.

Passed as an amendment to the Fair Credit Report Act, the Fair and Accurate Credit Transaction Act prohibits merchants from showing credit card numbers on receipts.  To comply with this law, businesses must truncate credit card information on electronically printed receipts.  Merchants can include no more than the last five digits of the card number and must delete the card’s expiration date.

Example: ACCT: **********00714
Exp: **-**

The law does not apply to imprinted or handwritten receipts; however, merchants using these are also required to protect customer identity. For more information, check out the Federal Trade Commission’s guide Slip Showing?

Comply with State Laws
After complying with the Fair Credit Reporting and Accurate Credit Transaction Act, be sure to familiarize yourself with your state’s laws on the use of consumer credit information.

Many states have laws that establish what kind of information merchants can and cannot ask for or write down when a customer uses a credit card. For example, California prohibits merchants from requesting or requiring that a consumer write any personal information (like their address or telephone number) on any form associated with their credit card transaction.

Not all states have additional laws that specifically regulate credit card practices.  For more information, read more about state merchant laws, or check with a small business expert in your state.

Beyond the Law – Merchant Contracts
Beyond these government regulations, credit card practices are also policed by the credit card companies themselves through terms of service or rules manuals.  These agreements details how transactions using their cards should be carried out.

Interestingly, many merchants cannot require a customer to provide identification as a requirement for accepting a credit card.  Although a merchant is allowed to ask for identification, customers can refuse without suffering a penalty.  The rules manual for popular cards like Visa or MasterCard state that a merchant must accept their card regardless of whether or not the customer provides personal identification. Note: If a customer prefers to be asked for identification, they can write “See I.D.” or “Ask for I.D.” on the back of their card. Although merchants are not required to follow this request, many happily comply.

Another little-known, but common, rule is that credit card companies generally prohibit merchants from establishing a “minimum purchase amount” when processing transactions with their cards. It is very common to walk into a store and see a sign stating that credit card transactions require a $10 minimum purchase.  Credit card companies want to promote the use of their cards and usually include rules that prohibit merchants from making these statements. More often than not, these merchants are violating their processing agreement with their card companies. Official rules vary from card to card but it is safe to say that it is either strongly discouraged or explicitly prohibited in many agreements. Unfortunately, for small businesses, transaction fees often mean that a small purchase made on a credit card hurts their profits.

It is not uncommon for merchants to ignore aspects of their rules manuals, usually because many are unaware the rules even exist.  Businesses should be sure to review the rules manuals for each company whose card they accept as payment.  Consumers should do the same to be aware of the rights they have for each card they carry.

If you have questions, please call this office at 888-564-5777.

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Categories : Bookkeeping
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Tax Breaks for Charity Volunteers

By Holly · Comments (1)
Tuesday, March 9th, 2010

If you volunteer your time for a charity, you may qualify for some tax breaks.  Although no tax deduction is allowed for the value of services performed for a charity, there are deductions permitted for out-of-pocket costs incurred while performing the services.  The normal deduction limits and substantiation rules also apply.  The following are some examples:

• Away-from-home travel expenses while performing services for a charity, including out-of-pocket roundtrip travel cost, taxi fares, and other costs of transportation between the airport or station and hotel, plus lodging and meals are allowed at 100%.  Unlike other areas of taxes, meals are not subject to the 50% limitation.  These expenses are only deductible if there is no significant element of personal pleasure associated with the travel, or if your services for a charity do not involve lobbying activities.  Any “significant element of personal pleasure” negates a deduction (i.e., not even partial deduction is allowed).  Significant personal pleasure is assumed if the taxpayer has only minor duties and is not required to perform any duties for the charity for major portions of the away-from-home stay.
• The cost of entertaining others on behalf of a charity, such as wining and dining a potential large contributor (but the cost of your own entertainment or meal is not deductible).
• If you use your car while performing services for a charitable organization, you may deduct your actual unreimbursed expenses directly attributable to the services, such as gas and oil costs, or you may deduct a flat 14 cents per mile for the charitable use of your car.  You may also deduct parking fees and tolls.
• You can deduct the cost of the uniform you wear when doing volunteer work for the charity, as long as the uniform has no general utility.  The cost of cleaning the uniform can also be deducted.

No charitable deduction is allowed for a contribution of $250 or more unless the contribution is substantiated with a written acknowledgment from the charitable organization.  To verify your contribution:

• Get written documentation from the charity about the nature of your volunteering activity and the need for related expenses to be paid.  For example, if you travel out-of-town as a volunteer, request a letter from the charity explaining why you’re needed at the out-of-town location.
• Submit a statement of expenses if you are out-of-pocket for substantial amounts and, preferably, a copy of the receipts to the charity.  Also arrange for the charity to acknowledge in writing the amount of the contribution.
• Maintain detailed records of your out-of-pocket expenses – includes receipts plus a written record of the time, place, amount and charitable purpose of the expense.

Please call us if you have questions related to your volunteer expenses or any other charitable contributions. 888-564-5777.

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Categories : Tax Information
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Are You Required to File 1099s?

By Holly · Comments (1)
Friday, March 5th, 2010

If you use independent contractors to perform services for your business or rental and you pay them $600 or more for the year, you are required to issue them a Form 1099 after the end of the year to avoid facing the loss of the deduction for their labor and expenses.  The 1099s for 2009 must be provided to the independent contractor no later than February 1st of 2010.  Generally, this due date is January 31, but when the due date falls on a Saturday, Sunday or holiday, it is not due until the next business day.

It is not uncommon to have a repairman out early in the year, pay him less than $600, then use his services again later and have the total for the year be $600 or more.  As a result, you overlook getting the information needed to file the 1099s for the year.  Therefore, it is good practice to always have individuals who are not incorporated complete and sign the IRS Form W-9 the first time you use their services.  Having a properly completed and signed Form W-9 for all independent contractors and service providers eliminates any oversights and protects you against IRS penalties and conflicts.

IRS Form (W-9, Request for Taxpayer Identification Number and Certification) is provided by the government as a means for you to obtain the data required to file the 1099s from your vendors. It also provides you with verification that you complied with the law should the vendor provide you with incorrect information. We highly recommend that you have a potential vendor complete the Form W-9 prior to engaging in business with them. The form can either be printed out or filled onscreen and then printed out. The W-9 is for your use only and is not submitted to the IRS.

In order to avoid a penalty, copies of the 1099s need to be sent to the IRS by the last day of February. However, the due date is extended to March 1, 2010 since the last day of February 2010 falls on a Sunday.  This must be submitted on magnetic media or on optically scannable forms (OCR forms). This firm prepares 1099s in OCR format for submission to the IRS with the 1096 submittal form.  This service provides recipient and file copies for your records.  Use the worksheet to provide us with the information we need to prepare your 1099s.

Please attempt to have the information to this office by January 20, so that the 1099s can be provided to the service providers by the January 31st due date.

If you have questions, please call this office at 888-564-5777.

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Categories : Bookkeeping, Payroll
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