October 2023: 1099 & 1042-S

It’s 1099 Season Again!

As we approach year-end, it’s time to prepare ourselves for 1099 and 1042 reporting once more. In recent years, the IRS has made some significant changes to reporting requirements, and this year is no exception. There’s one major difference you’ll need to be ready for when reporting 2023 payments in 2024 – the requirement to file electronically. Let’s dive in.

This month’s question:

How do you keep up with changes in 1099 and 1042 reporting requirements? What resources do you use? What advice would you give others about the best way to stay up to date on this task?

DISCUSS HERE

2023 1099 and 1042-S Master Guides Available Now!

Each year, the IRS introduces numerous changes to the tax code, and non-compliance can be costly. Our Master Guides to Form 1099 and Form 1042-S Compliance are invaluable resources for IOFM Members. Business and Enterprise Members can access Master Guides at no extra cost. Professional Members can access each guide for just $100 annually.

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New E-Filing Threshold

The IRS has reduced the electronic filing threshold for 1099s to 10 or more forms of ALL types combined — and that includes W-2s and some other forms as well. Jason Dinesen of Dinesen Tax discusses the impact in this timely podcast on e-filing changes.

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IRIS System

In the past, the IRS FIRE system was the only option for e-filing of 1099s, but for 2023 returns, they’ve introduced their new IRIS system — it’s free and allows you to file in CSV format or even in bulk. This should make it easier to file electronically.

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ON-DEMAND WEBINAR: 1099 and 1042-S Compliance Insights and Updates from the IOFM Master Guides for 2023

The 2023 Master Guides to Form 1099 and 1042-S Tax Compliance are now available from IOFM! Join IOFM and Cokala for this free Editorial Webinar for this free on-demand webinar that will share some of the insights, updates and resources the Guides provide for your organization’s 2023 year-end tax information reporting and 2024 year-long tax compliance tasks.

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1042 E-Filing Options

Unlike e-filing for 1099 forms, the IRIS system is not available for 2024 reporting of 1042 and 1042-S payments made in 2023. While many companies must now file 1042s electronically, they must still use the FIRE system or the MeFsystem.

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ON-DEMAND WEBINAR: Get Ahead of the Curve: IRS eFiling Updates for Tax Year 2023

Join IOFM and Sovos for this free on-demand webinar where you’ll learn the updated requirements for several tax returns submitted to the IRS by businesses including a variety of 1099s, Form 1042 Annual Withholding Tax Return for U.S. Source Income of Foreign Persons, and more.

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