Where Did 1099 Verification Come From Anyway
Have you ever wondered why 1099 verification is such a big deal for the IRS? The 1099 form dates all the way back to 1918 - for use in the 1917 tax form for employers to report salaries more than $800 (the equivalent of $16,650.48 in today's money).
From day one the 1099 form was meant to inform, in fact, a 1099 form is a information report, as opposed to a tex report. The information on a 1099 form is used to keep track of all extra sources of income that might not have been taxed directly - for example, independent contractor payments, rental property income, income from interest and dividends and more.
So, the IRS makes a big deal out of ensuring all identifying information on 1099s is correct because it is one of the only ways to stay informed about how money is moving around.
That’s why the penalties are so high and are raised every year! Just last year, the fine for a mismatch on your 1099 filing increase another $30 per mismatch.
Luckily, there’s FEINSearch and RealSearch to help you avoid all mismatches on your 1099 filings (which must be done by Jan 31st this year!). We can help you find and correct any mismatches in your system and get them cleared up quickly and easily - removing much of the pain and stress of the tax season! Check out our services and prices here: click here
You’re going to love how easy our system is to use. Plus, if you have a lot of TIN records to verify, we can provide you with bulk matching or even API Access! Give me a call at 800-299-8280 if you would like to discuss those options.