Jump to content
ATX Community


  • Content Count

  • Joined

  • Last visited

  • Days Won


About cbslee

  • Rank
    ATX Guru

Profile Information

  • State
  • Gender

Recent Profile Visitors

7,945 profile views
  1. It sounds similar to NBA players having to file tax returns in every state in which they play a game.
  2. No free slurpys, say it isn't so
  3. Copied from Accounting Today: Despite COVID-19, the Internal Revenue Service is continuing forward with moving 1099-MISC Box 7, “Non-Employee Compensation” to a new form, the 1099-NEC. This is effective starting this tax year, 2020, meaning that in January 2021, organizations will file this new form. The 1099-NEC is straightforward: Box 1 is for non-employee compensation and Box 4 is for federal withholding for that contract employee. To put it simply, income that the company used to report in 1099-MISC Box 7 will now be reported in 1099-NEC Box 1. State tax withheld, payer state ID number and state income is reported in Boxes 5, 6 and 7 on the 1099-NEC. ASC 842, IFRS 16, and GASB 87: The dramatic impact of the new lease accounting standards To comply companies and public entities will need to overhaul the information collected and how it is gathered and stored. SPONSOR CONTENT FROM And that's it: Those are the only boxes on the 1099-NEC. Who gets it According to the IRS, the people for whom an organization should use the new 1099-NEC are those with at least $600 in: Services performed by someone who is not an employee (including parts and materials) (Box 1); Cash payments for fish (or other aquatic life) that the company purchases from anyone engaged in the trade or business of catching fish (Box 1); Payments to an attorney (Box 1). The term "attorney" includes a law firm or other provider of legal services. Attorneys' fees of $600 or more paid in the course of the organization’s trade or business are reportable in Box 1 of Form 1099-NEC, under Section 6041A(a)(1); or, Each person from whom the company has withheld any federal income tax (report in Box 4) under the backup withholding rules, regardless of the amount of the payment. The new 1099-MISC All of the other income typically reported on a 1099-MISC will stay on that form, though Boxes 7 through 17 on the 1099-MISC have been shuffled. Box 1, “Rents,” and Box 3, “Other Income,” remain the same. More information on the MISC and NEC are on the IRS web site: www.irs.gov/instructions/i1099msc. Most accounting software likely does not yet support a "1099-NEC" flag for vendors, nor does it produce a 1099-NEC report. If a company has vendors that use 1099-MISC Boxes 1 or 3, they may want to consider inserting a “Display Name” flag such as "Vendor Name 1 - NEC" and "Vendor Name 2 - MISC," so that in January they can easily download the 1099-MISC CSV file and separate out the vendors who will go to the 1099-NEC. APIs that connect accounting software to 1099-NEC software may or may not be updated by January, so we suggest reaching out to the organization’s 1099 software tech support and ensuring that they have a plan for mapping vendors into the proper form. Other issues State requirements. Individual state filing requirements are as yet unknown. All of us in the 1099 world have our fingers crossed that the IRS will make the 1099-NEC part of the Combined Federal/State program. This decision is still in flux; and according to the IRS, will be made by late August. We anticipate new state 1099-NEC requirements arriving late in the year, making for a hectic January. Corrections for a prior-year 1099-MISC. So what if a company has to correct a Box 7 amount on a 2019 1099-MISC and the new 1099-MISC Box 7 no longer exists? The IRS says corrections to 1099-MISC box 7 for tax years 2019 and earlier will remain on the old 1099-MISC form. Due dates. The due date for 1099-NEC is Feb. 1, 2021, to both the IRS and to recipients. The new 1099-MISC due date is pushed back to March 31, 2021, for IRS e-filing, since it no longer contains Box 7. It is still due to recipients on Feb. 1, 2021.
  4. cbslee

    IRS EIN#

    The point is that the IRS will not allow a S.P. to have more than one EIN. Second, If you have client who ceases to use an EIN they should notify the IRS to have the EIN deactivated so that it can't be used by someone else for fraudulent purposes.
  5. The changes in tax law both federal and state is what generates work for us. Without the changes there would a lot fewer practitioners .
  6. I have a client who is a coffee roaster who also sells espresso equipment. Occasionally, they will receive good sized deposits a month or two in advance of delivering the espresso equipment to their customer, which I record as a liability.
  7. I believe that if it generates a Net Operating Loss, then the NOL would carryforward.
  8. The president signed the extension bill into law this morning.
  9. More changes are on the way. A bipartisan bill in the Senate Banking Committee would allow PPP Loan recipients of loans in the amount of $150,000 or less, to receive forgiveness with the filing of a one page attestation which would not require any complicated calculations. The PPP webinar I took yesterday covered both forgiveness applications. While the EZ application is less complicated, just determining whether you qualify to use the EZ application is definitely not easy unless you are a small business with a few employees with no changes.
  10. Today, the House also passed the Extension Bill by unanimous consent. It now heads to the White House for the president's signature.
  11. cbslee


    Actually, I was wondering whether Instacart provided any supporting reports in addition to the 1099?
  12. This reminds me that about 15 years ago some prospective clients, husband and wife , who worked full time as independent commission agents for a merchant card services firm approached me to prepare their tax return. They had purchased a custom made Class A RV Marathon Coach at a cost of about $ 1 Million. They wanted my assurances that they could deduct the depreciation on the RV since "they used the RV as their mobile office." When I explained to them why they couldn't do that, they left my office in a huff and went"accountant shopping".
  13. The scenario as posted sounds very questionable
  14. Late today, the Senate voted unanimously to extend the PPP Loan Program from June 30th until August 8th, since $130 Billion is still unspent. The House has yet to vote.
  15. cbslee

    IRS EIN#

    Just curious, was this a S.P., setting up a second business ?
  • Create New...