Tag Archive for Online tax preparation

Where to report 1099-K Income

February 11, 2012 / Arthur Dimarsky / 2 comments

New form 1099-K produced confusion, here are some answers.

My website is getting a lot of hits with people confused on how to handle new Form 1099-K. Most people don’t know where to make the entry on their tax return. I decided to help and here are some answers to your question.

What is form 1099-K?

Form 1099-K must be sent by all credit card companies and any other companies that received payments for purchases and passed the money to a business or an individual who sold the goods to a consumer. To make this simple, this is a portion of gross receipts that was paid for by credit cards, PayPal, Google Checkout, and other companies that provide similar transactions.

Where do you enter 1099-K information?

Form 1040, individual tax return

On form 1040 you have to make this entry on Schedule C (self employment). Add up all 1099-K amounts and enter the total on Form 1040, Schedule C, » Read more..

Categories: Industry News / Tags: 1099-k information, Brooklyn CPA, Online tax preparation, Professional tax preparation software, professional tax software, Services for CPA, Services for Tax Preparers, tax preparation software for preparers, Tax questions

Identity Theft Crackdown Sweeps Across the Nation

February 3, 2012 / Arthur Dimarsky / 6 comments

More than 200 Actions Taken in Past Week in 23 States

For more information, see the Special Identity Theft Enforcement Efforts – 2012 page.

IR-2012-13, Jan. 31, 2012

WASHINGTON – The Internal Revenue Service and the Justice Department today announced the results of a massive national sweep cracking down on suspected identity theft perpetrators as part of a stepped-up effort against refund fraud and identity theft.

Working with the Justice Department’s Tax Division and local U.S. Attorneys’ offices, the nationwide effort targeted 105 people in 23 states. The coast-to-coast effort took place over the last » Read more..

Categories: Industry News / Tags: Online tax preparation, Professional tax preparation software, professional tax software, Register tax return preparer IRS Notice, Registered tax preparer test, Services for CPA, Services for Tax Preparers, tax preparation software for preparers, Tax questions, Tax Services for cpa, W-2 Printing

Tax Questions How & Where to Report 1099-K income for 2011

January 30, 2012 / Arthur Dimarsky / No comments

For tax year 2011, the IRS asks recipients of the Form 1099-K, Merchant Card and Third–Party Network Payments to include the business income from 1099-Ks as part of the aggregate total with other business receipts on their tax returns.

The “What’s New” section in the instructions for Form 1040 Sch. C,Sch. E and Sch. F has information for reporting the income on 2011 tax returns.

Please note: This does not change the requirement that responsible entities file and furnish Forms 1099-K for 2011.

Form 1099-K, Merchant Card and Third Party Network Payments

A payment settlement entity (PSE) must file Form 1099-K for payments made in settlement of reportable payment transactions for each calendar year. A PSE makes a payment in settlement of a reportable payment transaction, that is, any payment card » Read more..

Categories: Industry News / Tags: 1099 Printing, Brooklyn CPA, Online tax preparation, Professional tax preparation software, Services for CPA, Services for Tax Preparers, Tax questions, Tax Services for cpa, W-2 Printing

FREE e-File system Launch. No Professional Tax Software needed to participate.

January 21, 2012 / Arthur Dimarsky / 7 comments

IRS e-file Launches Today; Most Taxpayers Can File Immediately

IR-2012-7, Jan. 17, 2012

WASHINGTON — The Internal Revenue Service opened the 2012 electronic tax return filing season today with a reminder to taxpayers that e-file remains the best way to get fast refunds and ensure accurate tax returns.

IRS e-file has surpassed the milestone of 1 billion returns processed. The electronic transmission system revolutionized the way the IRS processes tax returns and made speedy refunds possible. More than 112 million income tax returns were e-filed last year, or 77 percent of all individual returns filed. » Read more..

Categories: e-File / Tags: 1099 Printing, Brooklyn CPA, Online tax preparation, Professional tax preparation software, professional tax software, Services for CPA, Services for Tax Preparers, tax preparation software for preparers, Tax Services for cpa, W-2 Printing

Professional Tax Preparation Software has been set to Extended Deadline

January 8, 2012 / Arthur Dimarsky / 29 comments

IRS Kicks Off 2012 Tax Season with Deadline Extended to April 17

IRS YouTube Video: April 17th Tax Deadline: English | ASL

IR-2012-1, Jan. 4, 2012

WASHINGTON — The Internal Revenue Service today opened the 2012 tax filing season by announcing that taxpayers have until April 17 to file their tax returns. The IRS encourages taxpayers to e-file as it is the best way to ensure accurate tax returns and get faster refunds.

The IRS also announced a number of improvements to help make this tax season easy for taxpayers. This includes new navigation features and helpful information on IRS.gov and a new pilot to allow taxpayers to use interactive video to get help with tax issues. » Read more..

Categories: Industry News / Tags: 1099 Printing, Brooklyn CPA, Online tax preparation, Professional tax preparation software, professional tax software, Services for CPA, Services for Tax Preparers, tax preparation software for preparers, Tax Services for cpa, W-2 Printing

PTIN System Unavailable for New Applications

December 22, 2011 / Arthur Dimarsky / 178 comments

Professional tax preparation software, 1099 printing, w-2 printing

PTIN System Unavailable for New Applications from Dec. 26 until Jan. 9

Due to previously scheduled maintenance on IRS systems, the PTIN system will be unavailable for new applications from 5:00 PM ET on Friday, Dec. 26 until approximately 9:00 AM ET on Monday, Jan. 9. Preparers are still able to renew existing PTINs during this window. We sincerely apologize for the inconvenience. We are exploring ways to mitigate the outage for preparers who cannot meet the December 26 deadline. More to come on this issue.

Categories: Industry News / Tags: 1099 Printing, Brooklyn CPA, Online tax preparation, Professional tax preparation software, professional tax software, Register tax return preparer IRS Notice, Services for CPA, Services for Tax Preparers, tax preparation software for preparers, Tax Services for cpa, W-2 Printing

IRS issued final regulations requiring paid tax return preparers to file a due diligence checklist

December 22, 2011 / Arthur Dimarsky / 64 comments

Starting Jan. 1: Tax Preparers Need to File Due Diligence Checklist with All Earned Income Tax Credit Claims

IR-2011-122, Dec. 20, 2011

WASHINGTON — The Internal Revenue Service today issued final regulations requiring paid tax return preparers to file a due diligence checklist, Form 8867, with any federal return claiming the Earned Income Tax Credit (EITC). This is the same form that is currently required to be completed and retained in a preparer’s records.

The due diligence requirement, enacted by Congress over a decade ago, was designed to reduce errors on returns claiming the EITC, most of which are prepared by tax professionals. The IRS created Form 8867, Paid Preparer’s Earned Income Credit Checklist, to help preparers meet the requirement by obtaining eligibility information from their clients. Preparers have » Read more..

IRS Offers Tips for Year-End Giving

December 18, 2011 / Arthur Dimarsky / 297 comments

W-2 Printing, Professional tax preparation software

R-2011-118, Dec. 15, 2011

WASHINGTON — Individuals and businesses making contributions to charity should keep in mind several important tax law provisions that have taken effect in recent years. Some of these changes include the following:

Special Charitable Contributions for Certain IRA Owners

This provision, currently scheduled to expire at the end of 2011, offers older owners of individual retirement accounts (IRAs) a different way to give to charity. An IRA owner, age 70½ or over, can directly transfer tax-free up to $100,000 per year to an eligible charity. This option, created in 2006, is available for distributions from IRAs, regardless of whether the owners itemize their deductions. Distributions from employer-sponsored retirement plans, » Read more..