1099s

The deadline for providing 1099’s to recipients is on January 31, we wanted to make you aware of some new questions that you have to answer on your tax returns.  The IRS wants to make sure that you are following the rules on providing 1099’s to those who meet the reporting threshold.  If you pay a non incorporated service provider at least $600 during the calendar year in the course of your business or farm activity, you are required to report those payments to them on a Form 1099.  Attorneys are a special category of vendors, in that you are required to send them a 1099 for all payments.

The IRS is asking if you have made payments to a service provider that would require a Form 1099 to be filed.  If you answer this question yes, they ask if you have filed the Form 1099 or are going to do so.  If you have questions on 1099’s please give Jeff Lovelady a call 501.753.9700 or e-mail jeff.lovelady@bellandcompany.net.

Form 2290 Filing Delays for Tax Year 2011-2012

The federal highway use tax (FHUT) form and rules may be changing in the next few months. These changes may cause delays in the 2011-2012 Form 2290 filing season. The IRS is currently not accepting any paper or e-filed Form 2290’s. An announcement on the changes to the Form 2290 is expected once the legislation is finalized.

The problem from these delays is that the Form 2290 is typically required before you can get new tags. States will accept your Schedule 1 for the Form 2290 for the previous tax year (July 1, 2010 – June 30, 2011) as proof of payment so you can renew your tags.

The IRS has recommended that you do not send in old versions of the Form 2290 for your 2011-2012 FHUT. Any payment that is sent with old versions of Form 2290 will be applied to your tax account. No schedule 1 for the 2011-2012 tax year will be issued until the current Form 2290 is filed and all tax is paid. If an old form is filed, the IRS will issue a notice requesting a current form.

Please contact Brady Pipkin, CPA or Jeff Lovelady, CPA at 501.753.9700 for more information