Businesses can file Form 1099 series information returns for free
Business taxpayers can file electronically any Form 1099 series information returns for free with the IRS Information Returns Intake System (IRIS). IRIS accepts 1099 series forms for tax year 2022 and after. IRIS is available to any business of any size. It's secure and accurate and it requires no special software. It also reduces the need for paper forms.
Starting in tax year 2023, businesses with a combination of 10 or more information returns must file them electronically.
With IRIS, business taxpayers can:
- Enter information into the portal or upload a file with a downloadable template in IRIS.
- Download completed copies of Form 1099-series information returns.
- Submit extensions.
- Make corrections to information returns filed with IRIS.
- Get alerts for input errors and missing information.
- Get a confirmation in a little as 48 hours that the IRS received the return.
- Reduce expenses on paper, postage, storage space and trips to the post office.
1099-K reporting threshold delayed for third party platform payments
The IRS delayed the new $600 Form 1099-K reporting threshold requirement for third party payment organizations for tax year 2023. For 2023 and prior years, payment apps and online marketplaces are required to send out Forms 1099-K only to taxpayers who receive over $20,000 and have over 200 transactions. For tax year 2024, the IRS plans for a threshold of $5,000 to phase in the new reporting requirements.
Time to renew Preparer Tax Identification Numbers by Dec. 31
Paid tax return preparers with a PTIN expiring on Dec. 31, 2023, need to renew their PTIN with the online renewal process. It takes about 15 minutes to renew online.
Anyone who's paid to prepare or helps prepare any U.S. federal tax return or a claim for refund must have a valid PTIN from the IRS. All 2023 PTINs will expire Dec. 31, 2023. The non-refundable fee to get or renew a PTIN is $19.75 for 2024.
While it is faster to renew online, paid tax return preparers can also renew their PTINs with Form W-12, IRS Paid Preparer Tax Identification Number Application and Renewal. It can take up to six weeks to process paper applications and renewals.
Renew a PTIN online
To renew online with IRS.gov/taxpros:
- Select the "Renew or Register" button.
- Login with a user ID and password.
- Select "Renew my PTIN" from the main menu.
Apply for a PTIN online
To apply online as a first-time applicant with IRS.gov/taxpros:
- Select the "Renew or Register" button.
- Select "Create an Account" and follow the prompts to get a temporary password.
- Login with the user ID and emailed temporary password and follow the steps.
- Select "Register for a PTIN" from the main menu.
Enrolled agent credential
The enrolled agent credential is an IRS certification for tax professionals who demonstrate special competence in federal tax planning, individual and business tax return preparation and representation matters. Enrolled agents have unlimited rights to practice before the IRS, which allow them to represent any client on any tax matter.
Program for non-credentialed tax return preparers
The IRS encourages non-credentialed tax return preparers to take continuing education courses to increase their knowledge and improve their filing season readiness.
Non-credentialed tax return preparers who participate in the IRS Annual Filing Season Program get educational credits, and the IRS includes them in a directory of return preparers on the IRS website. Taxpayers can use the IRS directory to find tax return preparers in their area who have completed the program or hold professional credentials recognized by the IRS. The Annual Filing Season Program is voluntary for tax return prepares who aren't enrolled agents, attorneys or CPAs.
Employers should certify employees before claiming the Work Opportunity Tax Credit
Employers who hire people from certain groups can reduce the tax they owe when they claim the Work Opportunity Tax Credit on their federal tax return. This credit encourages employers to hire workers certified as members of any of ten groups facing barriers to employment. When hiring, employers may want to take a moment to review eligibility requirements for the Work Opportunity Tax Credit.
Pre-screening and certification requirement
To claim the credit, an employer must first get certification that an individual is a member of one of the specified groups. They do so by submitting IRS Form 8850, Pre-screening Notice and Certification Request for the Work Opportunity Credit, to their state workforce agency within 28 days after the eligible worker begins work. Employers should not submit this form to the IRS. They should contact their state workforce agency with any questions about the processing of Form 8850.
Figuring and claiming the credit
Eligible employers claim the Work Opportunity Tax Credit on their federal income tax return. It is generally based on wages paid to eligible workers during the first year of employment. After the employer receives Form 8850 certification, they figure the credit on Form 5884, Work Opportunity Credit, and then claim the credit on Form 3800, General Business Credit.
Special rule for tax-exempt organizations
A special rule allows tax-exempt organizations to claim the credit only for hiring qualified veterans who began work for the organization before 2026. After the employer receives the Form 8850 certification, these organizations claim the credit against payroll taxes on Form 5884-C, Work Opportunity Credit for Qualified Tax Exempt Organizations.
Credit limitations
For a taxable business, the credit value is limited to the business' income tax liability.
For qualified tax-exempt organizations, the credit is limited to the amount of employer Social Security tax owed on wages paid to qualifying employees.
IRS reminds extension filers to have all their info before visiting a tax professional
The deadline is around the corner for taxpayers with an extension to file. It's important for taxpayers to gather all their records and get copies of any missing documents before they sit down to prepare their return, and taxpayers who use a professional tax preparer should make sure they have all their information ready before their appointment. This helps them file a complete and accurate tax return.
Here's the information taxpayers may need. Not all information applies to all taxpayers.
- Social Security numbers of everyone listed on the tax return.
- Bank account and routing numbers for direct deposit or information to make a tax payment.
- Forms W-2 from employer(s).
- Forms 1099 from banks, issuing agencies and other payers including unemployment compensation, dividends, distributions from a pension, annuity or retirement plan.
- Form 1099-K, 1099-MISC, W-2 or other income statement for workers in the gig economy.
- Form 1099-INT for interest received.
- Other income documents and records of virtual currency transactions.
- Form 1095-A, Health Insurance Marketplace Statement.
- Information to support claiming other credits or deductions such as receipts for child or dependent care, college expenses or donations.
Missing documents: What taxpayers should do
To request a missing W-2 or Form 1099, taxpayers should contact the employer, payer or issuing agency. This also applies for taxpayers who received an incorrect W-2 or Form 1099.
If they still can't get the forms, taxpayers can complete Form 4852, Substitute for Form W-2, Wage and Tax Statement, or Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. If a taxpayer doesn't receive the missing or correct form in time to file their tax return, they can estimate the wages or payments made to them and any taxes withheld. They can use Form 4852 to report this information on their federal tax return.
Find an authorized e-file provider
For help finding a tax professional, taxpayers can use the Authorized IRS e-file Provider Locator Service. This is a nationwide listing of all businesses that the IRS has authorized as an IRS e-file provider. They're qualified to prepare, transmit and process e-filed returns.
Businesses must electronically file Form 8300 for cash payments over $10,000
Beginning Jan. 1, 2024, businesses that file 10 or more information returns must e-file Form 8300, Report of Cash Payments Over $10,000, instead of filing a paper return. For those with fewer information returns, e-filing Form 8300 is still optional. To file electronically Form 8300, a business must set up an account with the Financial Crimes Enforcement Network's BSA E-Filing System. The IRS will ensure the privacy and security of all taxpayer data.
Businesses that receive more than $10,000 in cash must report transactions to the U.S. government. Information reported on Form 8300 can help uncover tax evaders, criminals profiting from the drug trade and others committing potentially criminal conduct.
The requirement for e-filing Form 8300 applies to businesses that are required to e-file certain other information returns such as Form 1099 series and Form W-2.
Waivers and exemptions
If filing electronically would cause undue hardship, a business may request a waiver by submitting Form 8508, Application for a Waiver from Electronic Filing of Information ReturnsPDF. If the IRS grants a waiver from e-filing any information return, that waiver automatically applies to all Form 8300s for the rest of the calendar year. A business may not request a waiver from filing electronically only Form 8300. If a waiver is given, the business must include the word "waiver" on the center top of each Form 8300 when submitting a paper filed return.
If using the e-file technology conflicts with a filer's religious beliefs, they are automatically exempt from filing electronically. The filer must include the words "religious exemption" on the top of each Form 8300 when submitting the paper return.
E-filing is free and secure
Many businesses have already found the free and secure e-filing system to be a more convenient and cost-effective way to meet the reporting deadline of 15 days after a transaction. They get an email that confirms when the IRS receives the form after they e-file. Businesses can batch e-file their reports, and this is especially helpful to those required to file many forms.
For more information, businesses can call the Bank Secrecy Act E-Filing Help Desk at 866-346-9478 or email them at bsaefilinghelp@fincen.gov. For more information about the BSA E-Filing System, businesses can submit a technical support request at Self Service Help Ticket. The help desk is available Monday through Friday from 8 a.m. to 6 p.m. ET.