FORM 1099 Tax Alert
IRS income tax collection experience shows that taxpayers are much more likely to report their income when they receive third-party notification of payments they received on Form 1099. Understated business income is an area of great concern to the IRS. The IRS is currently focusing enforcement efforts on filing all types of Form 1099 information returns. This expanded effort on meeting filing requirements impacts the taxpayer and the tax preparer subjecting both to potential penalties for failure to comply.
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