Tax 1099 form is a strange concept to the accounting professionals who know 1099 forms as Certain Information Returns and business filings. These forms are an enormous category in themselves that cover a huge range of business dealings and financial transactions. Now, there are all kinds of IRS forms. Form 1095 covers a business’s responsibilities under the Affordable Care Act, while Form 940 covers an employer’s federal unemployment information. But one way of thinking about 1099 forms is that they’re the business counterpart to w-2 employee income. In other words, these forms are used to track and account for business income—often income generated between two businesses.
When firms use independent contractors and when those contractors use subcontractors, business income can be like a leaky bucket where everybody gets a little wet as the project is completed over a series of steps. Still, when the music stops, the income is taxed at the applicable rates. In this way, a tax 1099 form is a very accurate way of thinking about this category of IRS filings.
Filing 1099s Saves Your Business Money
Looking to document and file the payments you made to a contractor holder or financial account client? Maybe you made interest and dividend payments as part of consumer and investment banking. Maybe you paid out funds from a client’s retirement or educational savings account. Maybe you made regular income payments to a contracting professional for services rendered.
There are a couple different reasons why it’s essential that you file tax 1099 forms. For one thing, it’s a major way that you can account for your own business expenses. By documenting that you paid out tens of thousands of dollars to a qualifying payee, you ensure that your business doesn’t have to pay income tax on these funds. For another thing, it’s the law. Failure to file can result in stiff penalties from the IRS.
Tax 1099 Form Software
The W-2/1099 Forms Filer from Advanced Micro Solutions (AMS) is just what you need to file 1099 forms quickly, accurately, and cost-effectively. With a core set of embedded features, you’ll have the kind of intuitive, menu-driven performance needed to handle complex filing requirements without having to go 20 rounds with the software itself. We have the user-friendly operation you’re looking for this year, as well as more advanced software support as your business filing needs evolve.
See the range of data entry, information printing, client communications, file archives, and system security and networking from AMS. Discover what our software has to offer your firm by downloading our free demo.
Complete, Personalized Software Solutions
Better yet, this platform creates a sophisticated module interaction in which you add extra software products and features to your business’s custom software packaging. Just because you have 1099 forms to file doesn’t mean that that’s where your filing requirements end. Take a look at our full catalog of software modules and talk to our Sales and Information team at (800) 536-1099 if you have lingering questions.