W-2 + 1099 Changes Coming in 2017!

 

Starting in 2017, W-2s and 1099s (for 2016) will now be due to both the recipients and the government by January 31, 2017. Formerly, the government copies were due at the end of February or March, depending on the submission method. Penalties will be assessed on each return filed late, from $50-$260 per recipient, based on the date received.

Now is the time to make sure all subcontractor, independent contractor, and contract or temporary labor information is up-to-date in your files and that you have a correct address and federal ID number for each. This applies to anyone who provides a service to your company, whether on a job site or at your place of business. This also applies to any payments for rent or legal services. This information should be obtained by receiving a completed Form W-9 from the individual or business before they begin work for you.

Identity Theft: Tips for Taxpayers

Identity theft is a very real and serious issue. The 2015 tax season saw continued instances of identity theft.
 
According to the IRS: “Usually, an identity thief uses a legitimate taxpayer’s identity to fraudulently file a tax return and claim a refund. Generally, the identity thief will use a stolen SSN to file a forged tax return and attempt to get a fraudulent refund early in the filing season. You may be unaware that this has happened until you file your return later in the filing season and discover that two returns have been filed using the same SSN.”
 
It is important that you protect your personal information. The IRS advises the following actions to reduce the likelihood of identity theft: 

  • Don’t carry your Social Security card or any document(s) with your SSN on it.
  • Don’t give a business your SSN just because they ask. Give it only when required.
  • Protect your financial information.
  • Check your credit report every 12 months.
  • Secure personal information in your home.
  • Protect your personal computers by using firewalls, anti-spam/virus software, update security patches, and change passwords for Internet accounts.
  • Don’t give personal information over the phone, through the mail or on the Internet unless you have initiated the contact or you are sure you know who you are dealing with.

In addition, high income earners may want to consider contracting with a personal management firm to provide monitoring services or inquire if your insurance company provides similar services. Identity fraud insurance coverage may also be included in homeowner insurance policies for protection in the event identity theft occurs.
 
For additional information click on the following links:
Taxpayer Guide to Identity Theft
Tips for Taxpayer, Victims about Identity Theft and Tax Returns