Annual Information Return Reporting: What to Know This Tax Season

As hard as it is to believe, 2022 has finally arrived — and that means that tax season is right around the corner. As we move into the new year, there are some essential tax facts and details to keep in mind as we navigate through tax season. One thing to consider: most businesses that make reportable transactions in calendar year 2021 are required to file information returns to report those transactions to the IRS and provide a copy to the recipients of those transactions.

Knowing some of the most commonly used forms and their due dates can help you best prepare the documentation you need when the time comes to file your taxes. Some common forms (and their upcoming due dates) to consider as we head into the new year include:

Forms W-2 and W-3
The due date for filing 2021 forms is January 31, 2022, with the social security administration, whether you file using paper forms or electronically.

Forms 1099-NEC
The due date for filing 2021 forms is January 31, 2022, whether you file using paper forms or electronically. A form 1099-NEC must be filed when you’re reporting non-employee compensation of at least $600 paid to an individual.

Forms 1099-MISC
File Form 1099-MISC by February 28, 2022, if you file on paper, or March 31, 2022, if you file electronically. NOTE: If you are required to file Form 1099-MISC, you generally must provide a copy to recipients by January 31, 2022. A Form 1099-MISC is used to report at least $10 in royalty income, or at least $600 in rents and other income, as well as for each person you have withheld any federal income tax under the backup withholding rules regardless of the amount of the payment.

Contact Leone, McDonnell & Roberts for More Information
There are many other reporting requirements for specific types of transactions filed with the IRS for 2021. Please contact Leone, McDonnell & Roberts to speak with a qualified tax professional if you have a question on information return filing requirements or are unsure if specific mandates apply to your business.