When a company neglects to file a form on time, a few things can happen. Sometimes, the IRS pursues the company and levies a penalty immediately. Other times, this organization doesn’t take notice for several years. Other times still, the company’s software tool no longer supports previous versions of the form. In this case, not only is the form late – you also can’t use your software tool to remedy the mistake. This will never happen with AMS. We’ll show you what we mean.
What is the 1099 K Form?
A 1099 K, also known as the Payment Card and Third-Party Network Transactions form, is used for payments made in settlement of reportable payment transactions. A payment settlement entity, or PSE, is also known as a third-party settlement organization. These bodies have a contractual obligation to make payments to participating payees, who are generally merchants. In the simplest terms, the businesses who need to worry about the 1099 K are those who work for companies like PayPal, Venmo, and debit/credit card companies.
Can I Still File a 1099 K Form 2018?
Yes – you can, and you should. Most 1099 forms have a 3-year statute of limitations. This means that, for three years after the form’s original deadline, the IRS has the ability to fine or apply penalty payments to any busines that has incorrectly or neglected to file this form. The organization has until early 2022 to pursue these penalties. If you haven’t filed your 1099 K form 2018, we recommend doing so as soon as possible.
Most of the entities responsible for filing a 1099 K form 2018 are large companies – institutions that can pay and lend money to hundreds or thousands of users. In most cases, these companies will have a robust accounting system and process in place. Still, even with the most streamlined accounting protocol, mistakes are bound to happen. In a pile of 1,000 1099 K forms, it wouldn’t be unreasonable for a single form to get missed. Still, we think the tools from Advanced Micro Solutions can help.
Prevent Late and Missed Filings with AMS
Advanced Micro Solutions offers several software tools that aim to help small businesses. But, unlike other accounting software, we allow users to pick the products they need while still centralizing payee and payer data.
If you’re filing a 1099 K form 2018 late, we recommend a combination of our 1099/W2 Forms Filer and AMS Payroll for future needs. The 1099/W2 Forms Filer, our base platform, allows users to enter data directly onto the form within the system. A Common Payee File prevents needing to type the same information multiple times, and the automatic save function ensures work is never lost. This is the tool we recommend for companies who need to file a variety of W-2 and 1099 forms, including 1099 K form 2018.
We recommend pairing this software tool with AMS Payroll, our semi-automated payroll system. This software automatically calculates taxes and wages, then allows payment disbursement in several forms. Importantly, it generates and stores essential payment data across both W-2 employees and 1099 workers. When combined with the W-2/1099 Forms Filer, this tool allows users to use software-generated data to semi-automatically complete the forms required – including the 1099 K. Save time, money, and stress with a software solution from AMS.