Form 1099

1099-MISC - Attorney fees

Asked Thursday, January 26, 2012 by an anonymous user

CPA Answer:

The term Attorney includes a law firm or other provider of legal services
Attorney's fees of $600 or more paid in the course of your trade or business are reportable in Box 7.
Gross proceeds (such as for a case settlement) paid to Attorneys are reportable in Box 14.
CPAdirectory
Answer Provided by: CPAdirectory

Form 1099

1099-MISC - Box 1- 18 entries

Asked Thursday, January 26, 2012 by an anonymous user

CPA Answer:

Box 1 Rents
Box 2 Royalties
Box 3 Other Income
Box 4 Federal income tax withheld
Box 5 Fishing boat proceeds
Box 6 Medical & Health payments
Box 7 Nonemployee compensation
Box 8 Substitute payments in lieu of dividends or interest
Box 9 Direct sales of $5,000 or more of consumer products to a buyer for resale
Box 10 Crop Insurance
Box 11 Reserved
Box 12 Reserved
Box 13 Excess Golden parachute payments
Box 14 Gross proceeds paid to a attorney
Box 15a Section 409A deferrals
Box 15b Section 409A deferrals
Box 16 State tax witheld
Box 17 State number
Box 18 State income
CPAdirectory
Answer Provided by: CPAdirectory

Form 1099

1099-MISC - Red Copy A

Asked Thursday, January 26, 2012 by an anonymous user

CPA Answer:

For tax year 2012, Paper copies to be filed with the IRS for Forms 1099 Copies A and 1096 are RED copies.
In the past, Forms W-2 and W-3 also had to be filed using the Red forms but currently the IRS will accept IRS approved scannable non red forms.
CPAdirectory
Answer Provided by: CPAdirectory

Form W-3

W-3 - Red forms - Filing requirement

Asked Thursday, January 26, 2012 by an anonymous user

CPA Answer:

In the past, Forms W-2 and W-3 had to be filed using the Red forms but currently the IRS will accept IRS approved scan able Non red forms.
For the current year, paper copies to be filed with the IRS for Forms 1099 Copies A and 1096 must be RED copies.
CPAdirectory
Answer Provided by: CPAdirectory

Employee Business Expense

Auto - Mileage Rate deductions

Asked Thursday, January 26, 2012 by an anonymous user

CPA Answer:

The standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be 56.5 cents per mile for business miles driven.
CPAdirectory
Answer Provided by: CPAdirectory

Employee Business Expense

Auto expenses - Proof

Asked Thursday, January 26, 2012 by an anonymous user

CPA Answer:

You should maintain a log or diary of your auto expenses.
If you use the actual expense method you should save the actual receipts for gas, oil, insurance, repairs, licenses and taxes.
If you use the mileage deduction method you need to maintain a log or diary which lists the date, destination, business purpose, mileage driven (odometer start/end) type and amount of other expenses incurred. Currently there are phone applications for mileage documentation.
CPAdirectory
Answer Provided by: CPAdirectory

Employee Business Expense

Auto - Driving to work

Asked Thursday, January 26, 2012 by an anonymous user

CPA Answer:

In general, costs of commuting between your home and workplace are not deductible. Costs for gas for your car, train, bus, tolls and parking fees are not deductible.
CPAdirectory
Answer Provided by: CPAdirectory

Employee Business Expense

Conventions - spouses expenses

Asked Thursday, January 26, 2012 by an anonymous user

CPA Answer:

Generally, any business must file a 1099 if it paid money in excess of $600 to an individual during the year. This includes payment for contract services as well as interest, capital gains or dividends.
There are more than 15 different types of Forms 1099, each for reporting different kinds of income.
These are forms used by the Internal Revenue Service to track individual income that isn't reported on a W-2 as wages.
Contract workers and investors usually have more income on Forms 1099s than on a W-2.
The business and entities that make these payments have the obligation to prepare and file Form 1099.
CPAdirectory
Answer Provided by: CPAdirectory

Form 1099

1099-MISC - Filing Deadlines

Asked Thursday, January 26, 2012 by an anonymous user

CPA Answer:

The filer must send the 1099 forms to the recipient by the end of January. They should mail Forms 1099 and 1096 by the end of February, unless submitting electronically, in which case the deadline is March 31.
A 30-day extension can be obtained by filing Form 8809 prior to the original deadline.
A professional tax preparer who is requesting an extension for more than 50 different filers must submit Form 8809 electronically.
CPAdirectory
Answer Provided by: CPAdirectory