How to Handle an IRS CP2000 Notice for Underreported Income
Receiving a CP2000 notice from the IRS can be unsettling, but it’s not an audit and doesn’t necessarily mean you did anything wrong. This notice simply means the IRS found a difference between the income reported on your tax return and what third parties—like banks, employers, or brokers—reported to them. It’s a proposal, not a […]
Cross-Border Payments Compliance: When to Issue Form 1042-S vs. Form 1099
Navigating U.S. tax reporting rules for cross-border payments can be tricky — especially when deciding whether to issue a Form 1042-S or a Form 1099. These forms serve similar purposes but apply in very different circumstances, based primarily on the recipient’s U.S. or non-U.S. tax status. Here’s a straightforward breakdown to help you stay compliant, […]
ACA Reporting Update: Federal Changes for 1095 Forms
Under the ACA, employers and insurers must file information returns to report health coverage to the IRS and provide copies to employees. This typically involves: Form 1095-C: For ALEs (50+ full-time employees), reporting offer of coverage Form 1095-B: For small employers with self-insured plans or insurers reporting minimal essential coverage (MEC) These forms must also […]
TIN Matching: Ensuring Error-Free 1099s and W-2s
When it comes to filing year-end information returns like Forms 1099 and W-2, accuracy matters. One of the most common (and costly) mistakes is a mismatch between a payee’s name and Taxpayer Identification Number (TIN). Enter TIN Matching — a simple but powerful tool to reduce IRS rejections, avoid penalties, and keep your business compliant. […]
Restaurant Tip Reporting 101: Year-End Compliance with Form 8027
Restaurants that serve food and beverages where tipping is customary have specific year-end reporting requirements — and Form 8027 is a big one. If you operate a large food or beverage establishment, you’re likely required to file this form annually with the IRS to report total sales, tips, and allocated tips. Whether you’re new to […]
Mandatory E-Filing: Adapting to the 10-Form Threshold Rule
In an era where digital transformation is reshaping how businesses and organizations interact with the IRS, the new e-filing requirements under the 10-form threshold rule mark a significant shift. Starting with tax year 2023 (filed in 2024), the IRS now mandates electronic filing for most filers who submit 10 or more information returns in a […]
