IRS Form 8027 vs. Form 4070: What Restaurant Employees and Owners Need to Know
For restaurant owners and employees, tip reporting is essential for both tax compliance and avoiding penalties. Two key IRS forms come into play: Form 8027 (Employer’s Annual Information Return of Tip Income and Allocated Tips) and Form 4070 (Employee’s Report of Tips to Employer). While both deal with tip income, they serve different purposes. Form […]
Breaking Down the W-2 Form: What Each Box Means for Your Taxes
The W-2 form is a crucial tax document that reports your annual earnings and the taxes withheld from your paycheck. Understanding each box on the form can help you file your tax return correctly and potentially maximize your refund. Here’s a breakdown of what each section means: Boxes 1–6: Income and Withholding Box 1: Wages, […]
Understanding Form W-2G for Slot Machine Winnings
Form W-2G is an IRS tax form used to report gambling winnings, including those from slot machines, that meet certain threshold amounts. It helps ensure that individuals who earn significant gambling winnings, including from casino slot machines, comply with federal income tax reporting requirements. Let’s break down the key aspects of Form W-2G and how […]
Paperwork Burden Reduction Act
As of 2024, a significant change has been introduced to the delivery requirements for Forms 1095-B and 1095-C. Employers are no longer required to automatically mail these forms to employees. Instead, these forms must be provided upon request. This change stems from the Paperwork Burden Reduction Act and Employer Reporting Improvement Act, signed into law […]
How to File a 1099 for a Deceased Person or Business That Closed Mid-Year
If you need to file a 1099 for a deceased individual or a business that closed mid-year, you are still required to report payments made before their passing or closure. Here’s how to handle each situation: 1. Filing a 1099 for a Deceased Person If you made payments to an individual who later passed away, […]
State of Tennessee and IRS Form 1099-K Requirement
Tennessee requires businesses that file a 1099-K with the IRS to also submit a copy to the Tennessee Department of Revenue. The state does not participate in the Combined Federal/State Filing (CFSF) program, so businesses must file their 1099-K forms separately and electronically with Tennessee. Key Details on Tennessee 1099-K Reporting: Who Must File? Payment […]
