Glossary

IRS Form 1099: Miscellaneous Income

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IRS Form 1099 is used to report various types of non-wage income, such as interest, dividends, capital gains, and self-employment earnings. There are several types of Form 1099, depending on the source of the income:

1099-INT: Reports interest income.
1099-DIV: Reports dividend income.
1099-MISC: Reports miscellaneous income, such as payments to independent contractors or freelancers.

The IRS requires businesses, financial institutions, and other entities to issue Form 1099 to taxpayers who receive more than $600 in certain types of income during the tax year. Taxpayers must report the income listed on their 1099 forms on their annual tax return.

Receiving Form 1099 is important because it signals to the IRS that the taxpayer earned income that may not have been subject to withholding, and failing to report this income can result in penalties and interest.

Recommendation

Failure to Pay Penalty

The IRS Failure to Pay Penalty is imposed when taxpayers do not pay their taxes by the due date, typically 0.5% of the unpaid tax for each month late.

CP80 Notice: Unfiled Tax Return and Credit on Account

The IRS CP80 Notice notifies taxpayers that they have a credit on their account but must file a tax return for the year in question to claim it.

Form 1120-PC – U.S. Property and Casualty Insurance Company Income Tax Return

Form 1120-PC is a tax return form specifically designed for Property and Casualty Insurance Companies in the U.S.

CP14 Notice: Balance Due Notification

The IRS CP14 Notice informs taxpayers that they have a balance due and provides instructions for payment or dispute.

Form 8995 – Qualified Business Income Deduction (QBI) Simplified Computation

Form 8995 – Qualified Business Income Deduction (QBI) Simplified Computation is a crucial tax form for claiming deductions related to business income.

IRS Letter 3172: Notice of Federal Tax Lien Filing and Your Right to a Hearing

IRS Letter 3172 is a notice that a federal tax lien has been filed against your property, giving the IRS a legal claim to your assets.

IRS Form 433-F: Collection Information Statement

IRS Form 433-F is a simplified financial statement used to apply for IRS collection options like Installment Agreements and Currently Not Collectible status.

CP03A Notice

IRS CP03A is sent to notify taxpayers that their tax return is being processed, including information on expected refund timelines.

Letter 2802C: Warning of Levy Action

IRS Letter 2802C notifies taxpayers that the IRS intends to levy their assets or wages unless they make immediate payment or establish a payment plan.

Form 8917 – Tuition and Fees Deduction

Form 8917 allows taxpayers to claim deductions for tuition and fees paid to educational institutions.