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By Merritt Hardy - June 1, 2018
With every New Year comes some end of year reporting functions that must be accomplished within a certain time frame and the preparing and mailing of 1099’s is one of them. In this blog, we will take a quick look at the form and the reason for preparation. We will also review IRS Form 8300 for Cash Payments.
Form 1099 is one of several IRS tax forms used in the United States to prepare and file an information return to report various types of income other than wages, salaries, and tips (for which Form W-2 is used instead). The term information return is used in contrast to the term tax return although the latter term is sometimes used colloquially to describe both kinds of returns. The form is used to report payments to independent contractors, rental property income, income from interest and dividends, sales proceeds and other miscellaneous income. The returns must be filed with the IRS by the end of February immediately following the year for which the income items or other proceeds are paid. Copies of the returns must be sent to payees, however, by the end of January. Form 1099 is used to report interest (1099-INT), dividends (1099-DIV), sales proceeds (1099-B) and some kinds of miscellaneous income (1099-MISC) with the latter being the most widely used. For Form 1099-MISC in particular, businesses are required to submit a Form 1099 for every contractor paid more than $600 for services during a year. This requirement usually does not apply to corporations receiving payments.
In Deal Pack Pro, the reporting function for this form has been built in to the system as long as you set the Vendor up saying “Y” to the 1099 box. The report can be run at any time and can be found under the Reports I tab under A/R II and will pull the information for the year in question. While the running of the report is built in to the system, the forms themselves are not but can be purchased from any office supply store (see the store for prices of the form). Please make sure to get the correct form for the type of printer that you are currently using (Impact or Laser).
Form 8300 is a form required by the Internal Revenue Service (IRS) to report the payment via cash of $10,000 or more in single transaction. The general rule is that you must file Form 8300, Report of Cash Payments Over $10,000 Received in a Trade or Business, if your business receives more than $10,000 in cash from one buyer as a result of a single transaction or two or more related transactions. Form 8300 provides valuable information to the Internal Revenue Service and the Financial Crimes Enforcement Network (FinCEN) in their efforts to combat money laundering and drug sells. This is an important effort, since money laundering is a tool used to facilitate various criminal activities, ranging from tax evasion to terrorist financing to drug dealing, to hide the proceeds from their illegal activities.
In addition to Deal Pack Pro having the built in Office of Foreign Assets Control (OFAC) check, we also have a report built in the system to check for form 8300 reporters and to prepare the form which can also be printed out of the system. But in order for the form to be printed out of the system, it must first be loaded under forms module by one of our support members.
If you are in need of any further information on this topic as it relates to Deal Pack Pro, or if you want any information on other Deal Pack Pro functions or a demo of the system please feel free to contact our support staff at 1-800-526-5832 and one of our support staff members will be glad to assist you. Also, please keep in mind that all of our training is now free and can be done 100% over the web!
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Advanced Business Computers of America (ABCoA) develops and supports end-to-end software solutions for the subprime finance industry. Since 1983,
we have helped automotive dealerships and finance companies eliminate duplication, remain compliant, and achieve success with dependable, all-in-one software and white glove service and support.
Deal Pack is a complete, all-in-one software ecosystem customizable to your exact needs and scalable to your exact size - helping improve your operations, grow your business,
and solve the challenges you face. Whether you are a finance or sales company, multi-entity or publicly traded company handling BHPH or LHPH, operating or capital leases,
internal or external floor-planning, retail, rentals, consumer loans, origination, or seasoned paper, Deal Pack is the dependable software for mission critical operations.
Deal Pack handles all of your business needs transparently – providing you measurable improvements and complete financial control, saving you time,
increasing your bottom line, and allowing you the freedom to focus on your daily operations. Deal Pack is relied upon by thousands of customers across
all 50 states in the United States and six countries around the world. Customers properly using Deal Pack have never lost an IRS audit.
To learn more about ABCoA, visit www.abcoa.com.