A TIN error occurs when a vendor or an employee’s name and Tax ID do not match what the IRS has on file. The prime reason for this to occur is because of hyphenated last names, nicknames, middle names, initials or a typo in the FEIN, business name, SSN, or last name.
The benefit to you as a client is to prevent IRS filing errors, which could potentially result in penalties. SPS/GZ will submit client TIN-Matching files to the IRS on a monthly, quarterly, or annual basis prior to December 1st. We collaborate with our clients to resolve errors before and after e-filings have occurred. Corrections are easy to make in our portal.
SPS/GZ is a full-service tax reporting and stock plan administration firm that provides personalized service and exceptional support, utilizing state-of-the-art technology to business clients of all sizes. We create and e-file Forms 1042-S, 1098-T, various 1099s. including 1099-NEC, and Affordable Care Act tax forms, as well as Forms 3921 and 3922. For more information, reach out to us at sales@greenzapato.com or call at (888)375-3049. Our complete and affordable solution allows administrators to simply upload their tax form data file to our secure portal in a few simple steps and we handle everything else to keep your organization compliant. Contact us today!
The US, EU, UK, Canada, Japan, Switzerland, Australia, New Zealand, and Taiwan have issued various sanctions, including banning certain Russian banks from SWIFT to hinder Russia’s economy in response to the invasion of Ukraine. Russia has since issued corrective measures in an attempt to strengthen its own economy that is in freefall. Russian stocks and currency are seeing record lows, and interest rates have doubled.
It is highly recommended that US companies check with compensation professionals regarding ESPP purchases, RSU vestings, and option exercises should any participants in their plans reside in Russia. Most plans will allow suspension of issuance of shares and ESPP participation. Cash settling is a consideration only if payment can be made in Rubles into the Russian resident’s bank or brokerage account in Russia. Visit Treasury’s FAQ for updated information.
SPS/GZ is a full-service tax reporting and stock plan administration firm that provides personalized service and exceptional support, utilizing state-of-the-art technology to business clients of all sizes. We create and e-file Forms 1042-S, 1098-T, various 1099s. including 1099-NEC, and Affordable Care Act tax forms, as well as Forms 3921 and 3922. For more information, reach out to us at sales@greenzapato.com or call at (888)375-3049. Our complete and affordable solution allows administrators to simply upload their tax form data file to our secure portal in a few simple steps and we handle everything else to keep your organization compliant. Contact us today!
According to the latest and most reliable Statista stats, there are now as many as 57 million gig workers in the US economy, accounting for 36% of all US workers. Taxpayers that earn income from part time, temporary or side work that isn’t reported on an information return form, (such as 1099-K, W-2, or 1099-NEC) or are paid in cash, property, goods, or virtual currency are considered to be gig workers. Tax returns must be filed if net earnings from self-employment by freelancers or gig workers exceed $400 . Quarterly estimated taxes may be made via the IRS pay-as-you-go tax system to help avoid late payment penalties. The gig economy is an essential part of the U.S. economy and is here to stay. Some estimates project that by 2027, one half of U.S. workers will be involved in the freelance or gig economy. For more information on the gig economy, visit the Gig Economy Tax Center.
Starting in tax year 2022, there is a question at the top of Form 1040 and Form 1040-SR that asks about virtual currency transactions. All taxpayers must check the box indicating either “yes” or “no.” A virtual currency transaction includes, but is not limited to:
If an individual disposed of any virtual currency that was held as a capital asset through a sale, exchange, or transfer, they should check “Yes” and use Form 8949 to figure their capital gain or loss and report it on Schedule D (Form 1040). If they received any virtual currency as compensation for services or disposed of any virtual currency they held for sale to customers in a trade or business, they must report the income as they would report other income of the same type (for example, W-2 wages on Form 1040 or 1040-SR, line 1, or inventory or services from Schedule C on Schedule 1). More information on virtual currency can be found in Instruction for Form 1040 and on IRS.gov.”
The IRS also reminds taxpayers that U.S. citizens and resident aliens must report unearned income, such as interest, dividends, pensions, as well as earned wages and tips from sources outside the United States unless exempt by law or a tax treaty. An income tax filing requirement generally applies even if a taxpayer qualifies for tax benefits, such as the Foreign Earned Income Exclusion or the Foreign Tax Credit, which substantially reduce or eliminate U.S. tax liability. These tax benefits are only available if an eligible taxpayer files a U.S. income tax return.
IR-2022-45 highlights Tax Time Guide, an IRS resource to help taxpayers file an accurate tax return. Additional help is available in Publication 17.
SPS/GZ is a full-service tax reporting and stock plan administration firm that provides personalized service and exceptional support, utilizing state-of-the-art technology to business clients of all sizes. We create and e-file Forms 1042-S, 1098-T, various 1099s. including 1099-NEC, and Affordable Care Act tax forms, as well as Forms 3921 and 3922. For more information, reach out to us at sales@greenzapato.com or call at (888)375-3049. Our complete and affordable solution allows administrators to simply upload their tax form data file to our secure portal in a few simple steps and we handle everything else to keep your organization compliant. Contact us today!
The IRS announced that it will forward Form 1099-NEC reporting data to some, but not all, states that participate in the “Combined Federal/State Filing Program”(CF/S). SPS/GZ highly recommends that you check your data against the updated IRS Publication 1220. Included is a list of participating states. https://www.irs.gov/pub/irs-pdf/p1220.pdf
If your organization needs TY2021 tax reporting assistance, reach out to us today. SPS/GZ has bandwidth for a few more tax reporting clients. The process of planning, staffing, ordering & housing supplies, printing, mailing, and filing tax form forms with the IRS is very time-consuming, costly, and challenging. We provide templates and guidance to our clients every step of the way during the busy tax reporting season.
As part of a thorough review process, the SPS/GZ team gives state filing recommendations and guidance. Let SPS/GZ partner with you. An added benefit to our clients is the seamless ease through which corrections are made with the IRS through our safe and secure spsgzXchange™ portal. Reach out today at sales@greenzapato.com or call at (888)375-3049.
The Internal Revenue Service (IRS) released issue IR-2021-186, reminding business owners to be judicious when determining whether individuals providing services are employees or independent contractors.
Employees are generally considered to be people who perform services for their organization if the business controls and has the right to control what will be done as well as how and when it will be done.
On the other hand, independent contractors are generally people working in an independent trade, business, or profession in which they offer their services to the public. Examples would be doctors, dentists, veterinarians, lawyers, accountants, contractors, subcontractors, public stenographers, or auctioneers are generally classified as independent contractors.
Income for independent contractors is reported on Form 1099-NEC, while income for employees is reported on Form W-2. The IRS offers guidance in the following chart to help determine the appropriate employment status.
Independent contractor vs. employee
Whether a worker is an independent contractor, or an employee depends on the relationship between the worker and the business. Generally, there are three categories to examine:
The IRS warns that misclassifying workers as independent contractors adversely affects employees because the employer’s share of taxes is not paid, and the employee’s share is not withheld. When a business misclassifies an employee without a reasonable basis, it could potentially be held liable for employment taxes for that worker. Generally, an employer must withhold and pay income taxes, Social Security and Medicare taxes, as well as unemployment taxes. Workers who believe they have been improperly classified as independent contractors have recourse. They can use IRS Form 8919, Uncollected Social Security and Medicare Tax on Wages (.pdf) to figure and report their share of uncollected Social Security and Medicare taxes that could potentially be due on their compensation.
SPS/GZ would be honored to be your organization’s trusted partner and assist with all of your Form 1099 processing and e-filing requirements. Saving time and money, while having peace of mind is critical today. Knowing that certified and experienced professionals will provide support and advice for complex issues is key.
For the Form 1099, which is required for reporting Nonemployee Compensation Income (formerly Box 7 of Form 1099-MISC), the Internal Revenue Service requires companies to e-file if issuing 250 or more 1099 forms by January 31st, making outsourcing a must for most organizations. Form 1099-NEC is not part of the Combined Federal/State Filing Program (“CF/SF”), meaning that individual state filings are also required for some states. The SPS/GZ 1099 processing solution allows for easy form creation, 1099 e-filing, and seamless form amendments without the need to buy and manage software. SPS/GZ also provides filing-only services with the IRS or individual states for any form type. SPS/GZ prides itself on providing top-notch services with a pricing structure that is flexible and reasonable.
SPS/GZ continues to stay abreast of new IRS and state requirements from year to year. In addition to 1099 forms, SPS/GZ creates and e-files Affordable Care Act tax forms, Forms 3921 and 3922, and Form 1042-S. Reach out today at sales@greenzapato.com or call at (888)375-3049.
Talk to your children about preparing for emergencies and what to do in case you are separated. Reassure them by providing information about how they can be involved. Have a meeting place set up in advance. Teach them their full names, your names, address, phone numbers and when it is appropriate to call 911 at appropriate ages. When they are able to be responsible for their own “Go Bag” kit, have them help fill their own backpacks or bag that will be used when evacuation is necessary. Contents should be based on unique needs and the latest recommendations by the Centers for Disease Control and FEMA.
This ends the National Preparedness Month series. SPS/GZ is a full-service tax reporting firm that provides personalized service and exceptional support, utilizing state-of-the-art technology to create and e-file Forms 1099, Affordable Care Act tax forms, and Forms 3921 and 3922. Reach out today at sales@greenzapato.com or call at (888)375-3049.
Natural disasters don’t wait for a convenient time. Preparing for them shouldn’t wait either. Start today by signing up for alerts, safe-guarding important documents, and taking other low cost and no cost preparedness actions to lessen the impact of disasters and emergencies for you and your family. Pack a bag for each member of your household, including pets, based on the latest recommendations by the Centers for Disease Control and FEMA.
SPS/GZ will post weekly topics during the National Preparedness Month. SPS/GZ is a full-service tax reporting firm that provides personalized service and exceptional support, utilizing state-of-the-art technology to create and e-file Forms 1099, Affordable Care Act tax forms, and Forms 3921 and 3922. Reach out today at sales@greenzapato.com or call at (888)375-3049.
The National Preparedness Month’s focus this week is to remind Americans to gather water and other supplies for everyone living in your home in a Go-Bag kit! Add items to last for several days after a disaster hits. You need to consider the unique needs of each person and pet in case you have to evacuate quickly. Update your kits and supplies based on the latest recommendations by the Centers for Disease Control and FEMA. Don’t delay- take the time now while you have it. Often, you may only have a few minutes to gather your belongings.
SPS/GZ will post weekly topics during the National Preparedness Month. SPS/GZ is a full-service tax reporting firm that provides personalized service and exceptional support, utilizing state-of-the-art technology to create and e-file Forms 1099, Affordable Care Act tax forms, and Forms 3921 and 3922. Reach out today at sales@greenzapato.com or call at (888)375-3049.
The 2021 theme is “Prepare to Protect. Preparing for disasters is protecting everyone you love.” Raising awareness about the importance of preparing for disasters and emergencies at any time is the goal of Ready.gov’s National Preparedness Month (NPM) each September. Businesses and citizens alike need to prepare for the likes of:
One way to prepare is to sign up for emergency alerts. Wireless emergency alerts allow authorized federal, state, local, tribal, and territorial public alerting authorities, the National Weather Service, the National Center for Missing and Exploited Children and the President of the United States to be broadcasted from cell towers to any WEA-enabled mobile device in a locally targeted area.
Another way to prepare is to download or order free preparedness materials from FEMA.gov’s online ordering platform. Use the information sheets to learn more about tips and best practices in preparing for, keeping safe during and how to respond to hazards and disasters. Businesses and citizens alike will also want to prepare for any disaster by safeguarding documents, office equipment, and other valuables.
SPS/GZ will post weekly topics during the National Preparedness Month. SPS/GZ is a full-service tax reporting firm that provides personalized service and exceptional support, utilizing state-of-the-art technology to create and e-file Forms 1099, Affordable Care Act tax forms, and Forms 3921 and 3922. Reach out today at sales@greenzapato.com or call at (888)375-3049.
In Issue IR-2021-67, the Internal Revenue Service (IRS) and the Department of the Treasury (Treasury) issue safe harbor guidance to qualified employers. Paycheck Protection Program (PPP) forgiveness is addressed as well as certain business and restaurant revitalization grants that are permitted to be excluded from gross receipts for determining eligibility for the Employee Retention Credit.
Safe harbor provisions are spelled out in Revenue Procedure 2021-33. Permitted amounts follow:
Employers are not required to apply the safe harbor. Employers may elect to utilize a safe harbor by excluding certain amounts in determining whether they qualify for eligibility in calendar quarters for purposes of claiming the ERC on its employment tax return. The safe harbor does not however, permit the exclusion of these amounts from gross receipts for any other federal tax purpose. The employer claiming a credit must apply the safe harbor to all employers treated as a single employer under the aggregation rules.
The most popular way that employers claim the ERC on their employment tax return, is by generally using Form 941, Employers Quarterly Federal Tax Return, or via adjusted employment tax return, Form 941-X, Adjusted Employer’s Quarterly Federal Tax Return or Claim for Refund.
SPS/GZ will continue to closely monitor pending legislation related to the ERC. Check back for additional information as updates will be made available. SPS/GZ is a full-service tax reporting firm that provides personalized service and exceptional support, utilizing state-of-the-art technology to create and e-file Forms 1099, Affordable Care Act tax forms, and Forms 3921 and 3922. Reach out today at sales@greenzapato.com or call at (888)375-3049.
In IR-2021-161, released on July 30, 2021, the IRS is urging entities with Employer Identification Numbers (EINs) to update their on-file information if any changes in responsible party or contact information have transpired.
Regulations require EIN holders to file a Change of Address or Responsible Party, Form 8822-B, with the IRS to make updates within 60 days. It is critical that the IRS has accurate information in case of identity theft or other fraud-related issues.
The IRS has begun to send letters to approximately 100,000 businesses, charities, partnerships, trusts, and estates where it appears the responsible party is outdated. The IRS defines “responsible party” as the individual or entity who “controls, manages, or directs the applicant entity and the disposition of its funds and assets.” Unless an applicant is a government entity, the responsible party must be an individual, not an entity. If there is more than one responsible party, the entity must list whichever party the entity wishes the IRS will recognize as the responsible party.
If you are looking to outsource your company’s tax form reporting services in TY2021 (including Forms 1099, 1098, 1042-S, 3921, 3922 and all Affordable Care Act forms), reach out today to schedule a demo of our system. SPS/GZ provides complimentary TIN Matching service for our clients in advance of filing with the IRS. Taxpayer’s Name and Tax ID Number (either the Social Security Number or the Employer Identification Number) is checked against IRS records to minimize filing errors. Our user-friendly system allows clients to autonomously change any information or amounts in form fields by simply logging into our secure portal. SPS/GZ’s platform tracks all changes, providing an audit trail, and corrections are automatically e-filed with the IRS, so you don’t need to worry about amending forms that were previously filed. We do not charge any extra fees for the correction service unless a special data project is requested. This process, including the 1099 e-file service for amendments, has helped many clients avoid or limit penalties imposed by the IRS.
SPS/GZ is a full-service tax reporting firm that provides personalized service and exceptional support, utilizing state-of-the-art technology to create and e-file Forms 1099, Affordable Care Act tax forms, and Forms 3921 and 3922. Reach out today at sales@greenzapato.com or call at (888)375-3049.
In the final segment of the “Dirty Dozen” List scheme and scam series, the IRS concludes with a warning to American taxpayers to watch out for scams and schemes by unscrupulous promoters who aggressively peddle false hopes with false claims while charging exorbitant fees.
The IRS has recently created the Office of Promoter Investigations (OPI) to focus on both participants and promoters of abusive tax avoidance transactions. The OPI coordinates service-wide enforcement activities. A word to the wise- the best defense for any taxpayer who is approached by a new promoter is to show caution: if it sounds too good to be true, it probably is.
These aggressively marketed abusive tax avoidance “deals” are broken down into the following categories:
The IRS continues to pursue actions against promoters of these schemes as well as the taxpayers who participate in them. “We are stepping up our enforcement against abusive arrangements,” said IRS Commissioner Chuck Rettig. “Don’t be lulled into these shady deals. The IRS recommends that anyone who participated in one of these abusive arrangements should consult independent counsel about coming into compliance.”
SPS/GZ is a full-service tax reporting firm that provides personalized service and exceptional support, utilizing state-of-the-art technology to create and e-file Forms 1099, Affordable Care Act tax forms, and Forms 3921 and 3922. Reach out today at sales@greenzapato.com or call at (888)375-3049.
The IRS issues additional warnings and details regarding 2021 tax fraud schemes and scams. Encouraging senior citizens and immigrants to beware of fake charities impersonating IRS authorities and imposters who often charge exorbitant fees for Offers in Compromise, Unemployment Compensation Insurance fraud, or tax form preparation.
Tips to remember when approached by a fake charity follow:
Offer in Compromise mills contort IRS programs and mislead people with no chance of meeting requirements or lowering penalties while charging excessive fees, often thousands of dollars. American taxpayers need to be wary of anyone who claims they can obtain larger offer settlements than others or who make misleading promises that the IRS will accept an offer for a small percentage fee. Companies advertising on radio or TV frequently are not able to do anything for taxpayers that they can’t do for themselves. Contact the IRS directly.
Tips to remember when dealing with unscrupulous tax return preparers follow:
Tips to remember with unemployment fraud red flags follow:
While a high percentage of tax preparers are honorable, ethical, and trustworthy, nefarious IRS impersonators and other tax preparation promoters are known to target vulnerable groups and are almost always threatening in nature. Those people who care about older Americans and immigrants need to also be on the alert for scams. An increased number of Americans have been known to receive telephone calls threatening penalties, jail time, deportation, or revocation of a driver’s license from someone claiming to be with the IRS. Recent immigrants should ignore these threats and not engage the scammers.
SPS/GZ will continue to post Dirty Dozen List information as the IRS makes it available SPS/GZ is a full-service tax reporting firm that provides personalized service and exceptional support, utilizing state-of-the-art technology to create and e-file Forms 1099, Affordable Care Act tax forms, and Forms 3921 and 3922. Reach out today at sales@greenzapato.com or call at (888)375-3049.
In its continued “Dirty Dozen” scheme and scam series, Americans are being warned by the IRS to watch out for unexpected contact from unscrupulous individuals preying on taxpayers, businesses, and tax preparers through e-mails, text and social media messaging, or phone calls. If in doubt, don’t click, respond, or hang up.
Con artists try to entice and convince recipients to disclose personal information using malicious software that captures, collects, or mines personal data to be used for nefarious purposes. Links are often used to collect or mine personal data, such as Social Security Numbers, banking, or credit card information, and even passwords. After gathering information online, criminals will pose as someone that the recipient knows or interacts with. “Friends” or social media contacts are used to fool recipients into thinking that they are dealing with someone that they know.
SPS/GZ has noticed posts on popular sites that pose to be innocent. However, all too often, personal information is being furnished that can be used in scams. Recent examples include name of the hospital you were born in, name of your best friend growing up, your first car, your first dog’s name, favorite drink, mountain or lake, favorite “anything”. The list goes on. We recommend that you don’t fall prey by responding with answers that give away secret or security answers.
The IRS warns that phishing schemes are cleverly disguised to look like they are from legitimate sources such as a government agency or financial institution. Cybercriminals usually send these phishing communications by cleverly disguising e-mail messages, so be on guard with text or social media messaging. Taxpayers should not open attachments or click on links that look like they are from the IRS or those promising big refunds, missing stimulus payments or threatening penalties.
Tax professionals are not immune to these scams. The IRS reminds tax professionals to protect themselves against scams from “new client” communications that contain attachments and those involving verification of the Electronic Filing Identification Numbers (EFIN) and Centralized Authorization File (CAF) numbers. An uptick in these kinds of scams have been seen by the IRS, along with offers to buy and sell EFINs and CAFs. Tax professionals have reported receiving scam e-mails from the fictitious “IRS Tax E-Filing“. Report all scams to the Treasury Inspector General for Tax Administration.
SPS/GZ is a full-service tax reporting firm that provides personalized service and exceptional support, utilizing state-of-the-art technology to create and e-file Forms 1099, Affordable Care Act tax forms, and Forms 3921 and 3922. Reach out today at sales@greenzapato.com or call at (888)375-3049.
The 2021 “Dirty Dozen” list warns of “nefarious schemes and scams”. Taxpayers, tax professionals, and financial institutions are urged to not only look to their own interests, but to safeguard vulnerable people close to them.
This year’s list is divided into four categories:
“We continue to see scam artists use the pandemic to steal money and information from honest taxpayers in a time of crisis,” said IRS Commissioner Chuck Rettig. “We provide this list to alert taxpayers about common scams that fraudsters use against their victims. At the IRS, we are dedicated to stopping these criminals, but it’s up to all of us to remain vigilant to protect ourselves and our families.”
SPS/GZ is a full-service tax reporting firm that provides personalized service and exceptional support, utilizing state-of-the-art technology to create and e-file Forms 1099, Affordable Care Act tax forms, and Forms 3921 and 3922. A breakdown of each category will be shared in future blog articles. Reach out today at sales@greenzapato.com or call at (888)375-3049.
