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Understanding Your CP267B Notice

You received a CP267B notice because you overpaid your Insurance Provider Fee under Section 9010 of ACA.


What you need to do

  • Call us within 30 days of the notice date between 8:00 a.m. and 4:30 p.m. Eastern Time at the number on your notice.
  • Identify your payment by tax form, fee year, and amount.
  • Tell us if we misapplied any of your payments.
  • Inform us where you want to apply the overpayment.

You may want to

  • Review your Letter 5067-C, Annual Fee on Health Insurance Providers Final Fee.
  • Visit www.irs.gov and search for the key phrase “Insurance Provider Fee”.
  • For tax forms, instructions, and publications, visit Forms & Publications or call 1-800-TAX-FORMS (1-800-829-3676).

Answers to Common Questions

Q. Why am I getting this Notice?

A. We're sending you this notice because our records indicate you overpaid your Insurance Provider Fee. We need you to confirm that your payment was intended for another fee year or inform us where you want to apply the overpayment.

Q. What is an “overpayment” and how is that different from a “refund”?

A. An “overpayment” occurs when you pay more in fees during the year than what you owe. This can either be refunded to you or applied to other taxes.

 

 

Page Last Reviewed or Updated: 14-Mar-2014

Printable samples of this notice (PDF)

 

 

How to get help

  • Call the 1-800 number listed on the top right corner of your notice.
  • Authorize someone (e.g., accountant) to contact the IRS on your behalf using Form 2848.
  • See if you qualify for help from a Low Income Taxpayer Clinic.
     

The Express 1040

Express 1040 1. Express 1040   Filing and Paying Business Taxes Table of Contents Introduction Useful Items - You may want to see: Identification NumbersNew EIN. Express 1040 Employee. Express 1040 Other payee. Express 1040 Income TaxDo I Have To File an Income Tax Return? How Do I File? IRS e-file (Electronic Filing) When Is My Tax Return Due? How Do I Pay Income Tax? Self-Employment (SE) TaxHow to become insured under social security. Express 1040 Earning credits in 2013 and 2014. Express 1040 Employment Taxes Excise Taxes Information ReturnsWaiver of penalties. Express 1040 Penalties. Express 1040 Introduction This chapter explains the business taxes you may have to pay and the forms you may have to file. Express 1040 It also discusses taxpayer identification numbers. Express 1040 Table 1-1 lists the benefits of filing electronically. Express 1040 Table 1-2 lists the federal taxes you may have to pay, their due dates, and the forms you use to report them. Express 1040 Table 1-3 provides checklists that highlight the typical forms and schedules you may need to file if you ever go out of business. Express 1040 You may want to get Publication 509, Tax Calendars. Express 1040 It has tax calendars that tell you when to file returns and make tax payments. Express 1040 Useful Items - You may want to see: Publication 505 Tax Withholding and Estimated Tax Form (and Instructions) 1040 U. Express 1040 S. Express 1040 Individual Income Tax Return 1040-ES Estimated Tax for Individuals Sch C (Form 1040) Profit or Loss From Business Sch C-EZ (Form 1040) Net Profit From Business Sch SE (Form 1040) Self-Employment Tax See chapter 12 for information about getting publications and forms. Express 1040 Identification Numbers This section explains three types of taxpayer identification numbers, who needs them, when to use them, and how to get them. Express 1040 Social security number (SSN). Express 1040   Generally, use your SSN as your taxpayer identification number. Express 1040 You must put this number on each of your individual income tax forms, such as Form 1040 and its schedules. Express 1040   To apply for an SSN, use Form SS-5, Application for a Social Security Card. Express 1040 This form is available at Social Security Administration (SSA) offices or by calling 1-800-772-1213. Express 1040 It is also available from the SSA website at www. Express 1040 socialsecurity. Express 1040 gov. Express 1040 Individual taxpayer identification number (ITIN). Express 1040   The IRS will issue an ITIN if you are a nonresident or resident alien and you do not have and are not eligible to get an SSN. Express 1040 In general, if you need to obtain an ITIN, you must attach Form W-7, Application for IRS Individual Taxpayer Identification Number, with your signed, original, completed tax return and any other required documentation and mail them to the following address. Express 1040  Internal Revenue Service ITIN Operation P. Express 1040 O. Express 1040 Box 149342 Austin, TX 78714-9342 The exceptions are covered in detail in the instructions for Form W-7. Express 1040 If you must include another person's SSN on your return and that person does not have and cannot get an SSN, enter that person's ITIN. Express 1040 The application is also available in Spanish. Express 1040 The form is available at IRS. Express 1040 gov or you can call 1-800-829-3676 to order the form. Express 1040    An ITIN is for tax use only. Express 1040 It does not entitle the holder to social security benefits or change the holder's employment or immigration status. Express 1040 Employer identification number (EIN). Express 1040   You must also have an EIN to use as a taxpayer identification number if you do either of the following. Express 1040 Pay wages to one or more employees. Express 1040 File pension or excise tax returns. Express 1040   If you must have an EIN, include it along with your SSN on your Schedule C or C-EZ. Express 1040   You can apply for an EIN: Online by clicking on the Employer ID Numbers (EINs) link at www. Express 1040 irs. Express 1040 gov/businesses/small. Express 1040 The EIN is issued immediately once the application information is validated. Express 1040 By telephone at 1-800-829-4933. Express 1040 By mailing or faxing Form SS-4, Application for Employer Identification Number. Express 1040 New EIN. Express 1040   You may need to get a new EIN if either the form or the ownership of your business changes. Express 1040 For more information, see Publication 1635, Understanding Your EIN. Express 1040 When you need identification numbers of other persons. Express 1040   In operating your business, you will probably make certain payments you must report on information returns. Express 1040 These payments are discussed under Information Returns, later in this chapter. Express 1040 You must give the recipient of these payments (the payee) a statement showing the total amount paid during the year. Express 1040 You must include the payee's identification number and your identification number on the returns and statements. Express 1040 Employee. Express 1040   If you have employees, you must get an SSN from each of them. Express 1040 Record the name and SSN of each employee exactly as they are shown on the employee's social security card. Express 1040 If the employee's name is not correct as shown on the card, the employee should request a new card from the SSA. Express 1040 This may occur if the employee's name was changed due to marriage or divorce. Express 1040   Form W-4, Employee's Withholding Allowance Certificate, is completed by each employee so the correct federal income tax can be withheld from their pay. Express 1040   If your employee does not have an SSN, he or she should file Form SS-5 with the SSA. Express 1040 Other payee. Express 1040   If you make payments to someone who is not your employee and you must report the payments on an information return, get that person's SSN. Express 1040 If you must report payments to an organization, such as a corporation or partnership, you must get its EIN. Express 1040   To get the payee's SSN or EIN, use Form W-9, Request for Taxpayer Identification Number and Certification. Express 1040   A payee who does not provide you with an identification number may be subject to backup withholding. Express 1040 For information on backup withholding, see the Form W-9 instructions and the General Instructions for Certain Information Returns. Express 1040 Income Tax This part explains whether you have to file an income tax return and when you file it. Express 1040 It also explains how you pay the tax. Express 1040 Do I Have To File an Income Tax Return? You have to file an income tax return for 2013 if your net earnings from self-employment were $400 or more. Express 1040 If your net earnings from self-employment were less than $400, you still have to file an income tax return if you meet any other filing requirement listed in the Form 1040 instructions. Express 1040 How Do I File? File your income tax return on Form 1040 and attach Schedule C or Schedule C-EZ. Express 1040 Enter the net profit or loss from Schedule C or Schedule C-EZ on page 1 of Form 1040. Express 1040 Use Schedule C to figure your net profit or loss from your business. Express 1040 If you operated more than one business as a sole proprietorship, you must attach a separate Schedule C for each business. Express 1040 You can use the simpler Schedule C-EZ if you operated only one business as a sole proprietorship, you did not have a net loss, and you meet the other requirements listed in Part I of the schedule. Express 1040 IRS e-file (Electronic Filing) Please click here for the text description of the image. Express 1040 E-file logo You may be able to file your tax returns electronically using an IRS e-file option. Express 1040 Table 1-1 lists the benefits of IRS e-file. Express 1040 IRS e-file uses automation to replace most of the manual steps needed to process paper returns. Express 1040 As a result, the processing of e-file returns is faster and more accurate than the processing of paper returns. Express 1040 As with a paper return, you are responsible for making sure your return contains accurate information and is filed on time. Express 1040 Using e-file does not affect your chances of an IRS examination of your return. Express 1040 You can file most commonly used business forms using IRS e-file. Express 1040 For more information, visit IRS. Express 1040 gov. Express 1040 Electronic signatures. Express 1040   Paperless filing is easier than you think and it's available to most taxpayers who file electronically—including those first-time filers who were 16 or older at the end of 2013. Express 1040 If you file electronically using tax preparation software or a tax professional, you will participate in the Self-Select PIN (personal identification number) program. Express 1040 If you are married filing jointly, you and your spouse will each need to create a PIN and enter these PINs as your electronic signatures. Express 1040    To create a PIN, you must know your adjusted gross income (AGI) from your originally filed 2012 income tax return (not from an amended return, Form 1040X, or any math error notice from the IRS). Express 1040 You will also need to provide your date of birth (DOB). Express 1040 Make sure your DOB is accurate and matches the information on record with the Social Security Administration before you e-file. Express 1040 To do this, check your annual Social Security Statement. Express 1040   With a Self-Select PIN, there is nothing to sign and nothing to mail—not even your Forms W-2. Express 1040 For more details on the Self-Select PIN program, visit IRS. Express 1040 gov. Express 1040 State returns. Express 1040   In most states, you can file an electronic state return simultaneously with your federal return. Express 1040 For more information, check with your local IRS office, state tax agency, tax professional, or IRS. Express 1040 gov. Express 1040 Refunds. Express 1040   You can have your refund check mailed to you, or you can have your refund deposited directly to your checking or savings account. Express 1040   With e-file, your refund will be issued in half the time as when filing on paper. Express 1040 Most refunds are issued within 3 weeks. Express 1040 If you choose Direct Deposit, you can receive your refund in as few as 10 days. Express 1040 Offset against debts. Express 1040   As with a paper return, you may not get all of your refund if you owe certain past-due amounts, such as federal tax, state tax, a student loan, or child support. Express 1040 You will be notified if the refund you claimed has been offset against your debts. Express 1040 Refund inquiries. Express 1040   You can check the status of your refund if it has been at least 24 hours (4 weeks if you mailed a paper return) from the date you filed your return. Express 1040 Be sure to have a copy of your tax return available because you will need to know the filing status, the first social security number shown on the return, and the exact whole-dollar amount of the refund. Express 1040 To check on your refund, do one of the following. Express 1040 Go to IRS. Express 1040 gov and click on Where's My Refund. Express 1040 Call 1-800-829-4477 for automated refund information, and follow the recorded instructions. Express 1040 Call 1-800-829-1954 during the hours shown in your form instructions. Express 1040 Balance due. Express 1040   If you owe tax, you must pay it by April 15, 2014, to avoid late-payment penalties and interest. Express 1040 You can make your payment electronically by scheduling an electronic funds withdrawal from your checking or savings account or by credit card. Express 1040 Using an Authorized IRS e-file Provider Many tax professionals can electronically file paperless returns for their clients. Express 1040 You have two options. Express 1040 You can prepare your return, take it to an authorized IRS e-file provider, and have the provider transmit it electronically to the IRS. Express 1040 You can have an authorized IRS e-file provider prepare your return and transmit it for you electronically. Express 1040 You will be asked to complete Form 8879, IRS e-file Signature Authorization, to authorize the provider to enter your self-selected PIN on your return. Express 1040 Depending on the provider and the specific services requested, a fee may be charged. Express 1040 To find an authorized IRS e-file provider near you, go to IRS. Express 1040 gov or look for an “Authorized IRS e-file Provider” sign. Express 1040 Using Your Personal Computer A computer with Internet access is all you need to file your tax return using IRS e-file. Express 1040 When you use your personal computer, you can e-file your return from your home any time of the day or night. Express 1040 Sign your return electronically using a self-selected PIN to complete the process. Express 1040 There is no signature form to submit or Forms W-2 to send in. Express 1040 Free Internet filing options. Express 1040   More taxpayers can now prepare and e-file their individual income tax returns free using commercial tax preparation software accessible through IRS. Express 1040 gov or www. Express 1040 usa. Express 1040 gov. Express 1040 The IRS is partnering with the tax software industry to offer free preparation and filing services to a significant number of taxpayers. Express 1040 Security and privacy certificate programs will assure tax data is safe and secure. Express 1040 To see if you qualify for these services, visit the Return Preparation and Filing Options page at IRS. Express 1040 gov. Express 1040   If you cannot use the free services, you can buy tax preparation software at various electronics stores or computer and office supply stores. Express 1040 You can also download software from the Internet or prepare and file your return completely online by using tax preparation software available on the Internet. Express 1040 Filing Through Employers and Financial Institutions Some businesses offer free e-file to their employees, members, or customers. Express 1040 Others offer it for a fee. Express 1040 Ask your employer or financial institution if they offer IRS e-file as an employee, member, or customer benefit. Express 1040 Free Help With Your Return Free help in preparing your return is available nationwide from IRS-trained volunteers. Express 1040 The Volunteer Income Tax Assistance (VITA) program is designed to help low-income taxpayers, and the Tax Counseling for the Elderly (TCE) program is designed to assist taxpayers age 60 or older with their tax returns. Express 1040 Some locations offer free electronic filing. Express 1040 Table 1-1. Express 1040 Benefits of IRS e-file Accuracy • Your chance of getting an error notice from the IRS is significantly reduced. Express 1040 Security • Your privacy and security are assured. Express 1040 Electronic signatures • Create your own personal identification number (PIN) and file a completely paperless return through your tax preparation software or tax professional. Express 1040 There is nothing to mail. Express 1040 Proof of acceptance • You receive an electronic acknowledgment within 48 hours that the IRS has accepted your return for processing. Express 1040 Fast refunds • You get your refund faster with Direct Deposit—in as few as 10 days. Express 1040 Free Internet filing options • Use IRS. Express 1040 gov to access commercial tax preparation and e-file services available at no cost to eligible taxpayers. Express 1040 Electronic payment options • Convenient, safe, and secure electronic payment options are available. Express 1040 E-file and pay your taxes in a single step. Express 1040 Schedule an electronic funds withdrawal from your checking or savings account (up to and including April 15, 2014) or pay by credit card. Express 1040 Federal/State filing • Prepare and file your federal and state tax returns together and double the benefits you get from e-file. Express 1040 When Is My Tax Return Due? Form 1040 for calendar year 2013 is due by April 15, 2014. Express 1040 If you use a fiscal year (explained in chapter 2), your return is due by the 15th day of the 4th month after the end of your fiscal year. Express 1040 If you file late, you may have to pay penalties and interest. Express 1040 If you cannot file your return on time, use Form 4868, Application for Automatic Extension of Time To File U. Express 1040 S. Express 1040 Individual Income Tax Return, to request an automatic 6-month extension. Express 1040 For calendar year taxpayers, this will extend the tax filing due date until October 15. Express 1040 Filing an extension does not extend the time to pay your taxes, only the time to file the tax return. Express 1040 How Do I Pay Income Tax? Federal income tax is a pay-as-you-go tax. Express 1040 You must pay it as you earn or receive income during the year. Express 1040 An employee usually has income tax withheld from his or her pay. Express 1040 If you do not pay your tax through withholding, or do not pay enough tax that way, you might have to pay estimated tax. Express 1040 You generally have to make estimated tax payments if you expect to owe taxes, including self-employment tax (discussed later), of $1,000 or more when you file your return. Express 1040 Use Form 1040-ES to figure and pay the tax. Express 1040 If you do not have to make estimated tax payments, you can pay any tax due when you file your return. Express 1040 For more information on estimated tax, see Publication 505, Tax Withholding and Estimated Tax. Express 1040 What are my payment options?   You can pay your estimated tax electronically using various options. Express 1040 If you pay electronically, there is no need to mail in Form 1040-ES payment vouchers. Express 1040 These options include: Paying electronically through the Electronic Federal Tax Payment System (EFTPS). Express 1040 Paying by authorizing an electronic funds withdrawal when you file Form 1040 electronically. Express 1040 Paying by credit or debit card over the phone or by Internet. Express 1040 Other options include crediting an overpayment from your 2013 return to your 2014 estimated tax, or mailing a check or money order with a Form 1040-ES payment voucher. Express 1040 EFTPS    To enroll in EFTPS, go to www. Express 1040 eftps. Express 1040 gov or call 1-800-555-4477. Express 1040 When you request a new EIN and you will have a tax obligation, you are automatically enrolled in EFTPS. Express 1040 Benefits of EFTPS: The chance of an error in making your payments is reduced. Express 1040 You receive immediate confirmation of every transaction. Express 1040 Penalty for underpayment of tax. Express 1040   If you did not pay enough income tax and self-employment tax for 2013 by withholding or by making estimated tax payments, you may have to pay a penalty on the amount not paid. Express 1040 The IRS will figure the penalty for you and send you a bill. Express 1040 Or you can use Form 2210, Underpayment of Estimated Tax by Individuals, Estates, and Trusts, to see if you have to pay a penalty and to figure the penalty amount. Express 1040 For more information, see Publication 505. Express 1040 Self-Employment (SE) Tax Self-employment tax (SE tax) is a social security and Medicare tax primarily for individuals who work for themselves. Express 1040 It is similar to the social security and Medicare taxes withheld from the pay of most wage earners. Express 1040 If you earned income as a statutory employee, you do not pay SE tax on that income. Express 1040 Social security coverage. Express 1040   Social security benefits are available to self-employed persons just as they are to wage earners. Express 1040 Your payments of SE tax contribute to your coverage under the social security system. Express 1040 Social security coverage provides you with retirement benefits, disability benefits, survivor benefits, and hospital insurance (Medicare) benefits. Express 1040 By not reporting all of your self-employment income, you could cause your social security benefits to be lower when you retire. Express 1040 How to become insured under social security. Express 1040   You must be insured under the social security system before you begin receiving social security benefits. Express 1040 You are insured if you have the required number of credits (also called quarters of coverage), discussed next. Express 1040 Earning credits in 2013 and 2014. Express 1040   For 2013, you received one credit, up to a maximum of four credits, for each $1,160 ($1,200 for 2014) of income subject to social security taxes. Express 1040 Therefore, for 2013, if you had income (self-employment and wages) of $4,640 that was subject to social security taxes, you receive four credits ($4,640 ÷ $1,160). Express 1040   For an explanation of the number of credits you must have to be insured and the benefits available to you and your family under the social security program, consult your nearest Social Security Administration (SSA) office. Express 1040    Making false statements to get or to increase social security benefits may subject you to penalties. Express 1040 The Social Security Administration (SSA) time limit for posting self-employment income. Express 1040   Generally, the SSA will give you credit only for self-employment income reported on a tax return filed within 3 years, 3 months, and 15 days after the tax year you earned the income. Express 1040 If you file your tax return or report a change in your self-employment income after this time limit, the SSA may change its records, but only to remove or reduce the amount. Express 1040 The SSA will not change its records to increase your self-employment income. Express 1040 Who must pay self-employment tax. Express 1040   You must pay SE tax and file Schedule SE (Form 1040) if either of the following applies. Express 1040 Your net earnings from self-employment (excluding church employee income) were $400 or more. Express 1040 You had church employee income of $108. Express 1040 28 or more. Express 1040 The SE tax rules apply no matter how old you are and even if you are already receiving social security or Medicare benefits. Express 1040 SE tax rate. Express 1040   For 2013, the SE tax rate on net earnings is 15. Express 1040 3% (12. Express 1040 4% social security tax plus 2. Express 1040 9% Medicare tax). Express 1040 Maximum earnings subject to SE tax. Express 1040   Only the first $113,700 of your combined wages, tips, and net earnings in 2013 is subject to any combination of the 12. Express 1040 4% social security part of SE tax, social security tax, or railroad retirement (tier 1) tax. Express 1040   All your combined wages, tips, and net earnings in 2013 are subject to any combination of the 2. Express 1040 9% Medicare part of SE tax, social security tax, or railroad retirement (tier 1) tax. Express 1040   If wages and tips you receive as an employee are subject to either social security or railroad retirement (tier 1) tax, or both, and total at least $113,700, do not pay the 12. Express 1040 4% social security part of the SE tax on any of your net earnings. Express 1040 However, you must pay the 2. Express 1040 9% Medicare part of the SE tax on all your net earnings. Express 1040 Deduct one-half of your SE tax as an adjustment to income on line 27 of Form 1040. Express 1040   More information. Express 1040   For information on methods of calculating SE tax, see Chapter 10, Self-Employment Tax. Express 1040 Table 1-2. Express 1040 Which Forms Must I File? IF you are liable for: THEN use Form: DUE by:1 Income tax 1040 and Schedule C or C-EZ2 15th day of 4th month after end of  tax year. Express 1040 Self-employment tax Schedule SE File with Form 1040. Express 1040 Estimated tax 1040-ES 15th day of 4th, 6th, and 9th months of tax year, and 15th day of 1st month after the end of tax year. Express 1040 Social security and Medicare taxes and income tax withholding 941 or 944 April 30, July 31, October 31, and January 313. Express 1040     See Publication 15. Express 1040 Providing information on social security and Medicare taxes and income tax withholding W-2 (to employee)  W-2 and W-3 (to the Social Security Administration) January 313. Express 1040   Last day of February (March 31 if filing electronically)3. Express 1040 Federal unemployment (FUTA) tax 940 January 313. Express 1040     April 30, July 31, October 31, and January 31, but only if the liability for unpaid tax is more than $500. Express 1040 Filing information returns for payments to nonemployees and transactions with other persons See Information Returns Forms 1099 – to the recipient by January 31 and to the IRS by February 28 (March 31 if filing electronically). Express 1040     Other forms – see the General Instructions for Certain Information Returns. Express 1040 Excise tax See Excise Taxes See the instructions to the forms. Express 1040 1 If a due date falls on a Saturday, Sunday, or legal holiday, file by the next day that is not a Saturday, Sunday, or legal holiday. Express 1040 For more information, see Publication 509, Tax Calendars. Express 1040 2 File a separate schedule for each business. Express 1040 3 See the form instructions if you go out of business, change the form of your business, or stop paying wages. Express 1040     Employment Taxes If you have employees, you will need to file forms to report employment taxes. Express 1040 Employment taxes include the following items. Express 1040 Social security and Medicare taxes. Express 1040 Federal income tax withholding. Express 1040 Federal unemployment (FUTA) tax. Express 1040 For more information, see Publication 15 (Circular E), Employer's Tax Guide. Express 1040 That publication explains your tax responsibilities as an employer. Express 1040 To help you determine whether the people working for you are your employees, see Publication 15-A, Employer's Supplemental Tax Guide. Express 1040 That publication has information to help you determine whether an individual is an independent contractor or an employee. Express 1040 If you incorrectly classify an employee as an independent contractor, you may be held liable for employment taxes for that worker plus a penalty. Express 1040 An independent contractor is someone who is self-employed. Express 1040 You do not generally have to withhold or pay any taxes on payments made to an independent contractor. Express 1040 Excise Taxes This section identifies some of the excise taxes you may have to pay and the forms you have to file if you do any of the following. Express 1040 Manufacture or sell certain products. Express 1040 Operate certain kinds of businesses. Express 1040 Use various kinds of equipment, facilities, or products. Express 1040 Receive payment for certain services. Express 1040 For more information on excise taxes, see Publication 510, Excise Taxes. Express 1040 Form 720. Express 1040   The federal excise taxes reported on Form 720, Quarterly Federal Excise Tax Return, consist of several broad categories of taxes, including the following. Express 1040 Environmental taxes on the sale or use of ozone-depleting chemicals and imported products containing or manufactured with these chemicals. Express 1040 Communications and air transportation taxes. Express 1040 Fuel taxes. Express 1040 Tax on the first retail sale of heavy trucks, trailers, and tractors. Express 1040 Manufacturers taxes on the sale or use of a variety of different articles. Express 1040 Tax on indoor tanning services. Express 1040 Form 2290. Express 1040   There is a federal excise tax on the use of certain trucks, truck tractors, and buses on public highways. Express 1040 The tax applies to vehicles having a taxable gross weight of 55,000 pounds or more. Express 1040 Report the tax on Form 2290, Heavy Highway Vehicle Use Tax Return. Express 1040 For more information, see the Instructions for Form 2290. Express 1040 Depositing excise taxes. Express 1040   If you have to file a quarterly excise tax return on Form 720, you may have to deposit your excise taxes before the return is due. Express 1040 For details on depositing excise taxes, see the Instructions for Form 720. Express 1040 Information Returns If you make or receive payments in your business, you may have to report them to the IRS on information returns. Express 1040 The IRS compares the payments shown on the information returns with each person's income tax return to see if the payments were included in income. Express 1040 You must give a copy of each information return you are required to file to the recipient or payer. Express 1040 In addition to the forms described below, you may have to use other returns to report certain kinds of payments or transactions. Express 1040 For more details on information returns and when you have to file them, see the General Instructions for Certain Information Returns. Express 1040 Form 1099-MISC. Express 1040   Use Form 1099-MISC, Miscellaneous Income, to report certain payments you make in your business. Express 1040 These payments include the following items. Express 1040 Payments of $600 or more for services performed for your business by people not treated as your employees, such as fees to subcontractors, attorneys, accountants, or directors. Express 1040 Rent payments of $600 or more, other than rents paid to real estate agents. Express 1040 Prizes and awards of $600 or more that are not for services, such as winnings on TV or radio shows. Express 1040 Royalty payments of $10 or more. Express 1040 Payments to certain crew members by operators of fishing boats. Express 1040 You also use Form 1099-MISC to report your sales of $5,000 or more of consumer goods to a person for resale anywhere other than in a permanent retail establishment. Express 1040 Form W-2. Express 1040   You must file Form W-2, Wage and Tax Statement, to report payments to your employees, such as wages, tips, and other compensation, withheld income, social security, and Medicare taxes. Express 1040 You can file Form W-2 online. Express 1040 For more information about Form W-2, see the General Instructions for Forms W-2 and W-3. Express 1040 Penalties. Express 1040   The law provides for the following penalties if you do not file Form 1099-MISC or Form W-2 or do not correctly report the information. Express 1040 For more information, see the General Instructions for Certain Information Returns. Express 1040 Failure to file information returns. Express 1040 This penalty applies if you do not file information returns by the due date, do not include all required information, or report incorrect information. Express 1040 Failure to furnish correct payee statements. Express 1040 This penalty applies if you do not furnish a required statement to a payee by the required date, do not include all required information, or report incorrect information. Express 1040 Waiver of penalties. Express 1040   These penalties will not apply if you can show that the failure was due to reasonable cause and not willful neglect. Express 1040   In addition, there is no penalty for failure to include all required information, or for including incorrect information, on a de minimis (small) number of information returns if you correct the errors by August 1 of the year the returns are due. Express 1040 (A de minimis number of returns is the greater of 10 or ½ of 1% of the total number of returns you are required to file for the year. Express 1040 ) Form 8300. Express 1040   You must file Form 8300, Report of Cash Payments Over $10,000 Received in a Trade or Business, if you receive more than $10,000 in cash in one transaction, or two or more related business transactions. Express 1040 Cash includes U. Express 1040 S. Express 1040 and foreign coin and currency. Express 1040 It also includes certain monetary instruments such as cashier's and traveler's checks and money orders. Express 1040 Cash does not include a check drawn on an individual's personal account (personal check). Express 1040 For more information, see Publication 1544, Reporting Cash Payments of Over $10,000 (Received in a Trade or Business). Express 1040 Penalties. Express 1040   There are civil and criminal penalties, including up to 5 years in prison, for not filing Form 8300, filing (or causing the filing of) a false or fraudulent Form 8300, or structuring a transaction to evade reporting requirements. Express 1040 Table 1-3. Express 1040 Going Out of Business Checklists (Note. Express 1040 The following checklists highlight the typical final forms and schedules you may need to file if you ever go out of business. Express 1040 For more information, see the instructions for the listed forms. Express 1040 ) IF you are liable for:   THEN you may need to: Income tax □ File Schedule C or C-EZ with your Form 1040 for the year in which you go out of business. Express 1040   □ File Form 4797 with your Form 1040 for each year in which you sell or exchange property used in your business or in which the business use of certain section 179 or listed property drops to 50% or less. Express 1040   □ File Form 8594 with your Form 1040 if you sold your business. Express 1040 Self-employment tax □ File Schedule SE with your Form 1040 for the year in which you go out of business. Express 1040 Employment taxes □ File Form 941 (or Form 944) for the calendar quarter in which you make final wage payments. Express 1040 Note. Express 1040 Do not forget to check the box and enter the date final wages were paid on line 15 of Form 941 or line 14 of Form 944. Express 1040   □ File Form 940 for the calendar year in which final wages were paid. Express 1040 Note. Express 1040 Do not forget to check box d, Final: Business closed or stopped paying wages, under Type of Return. Express 1040 Information returns □ Provide Forms W-2 to your employees for the calendar year in which you make final wage payments. Express 1040 Note. Express 1040 These forms are generally due by the due date of your final Form 941 or Form 944. Express 1040   □ File Form W-3 to file Forms W-2. Express 1040 Note. Express 1040 These forms are generally due within 1 month after the due date of your final Form 941 or Form 944. Express 1040   □ Provide Forms 1099-MISC to each person to whom you have paid at least $600 for services (including parts and materials) during the calendar year in which you go out of business. Express 1040   □ File Form 1096 to file Forms 1099-MISC. Express 1040 Prev  Up  Next   Home   More Online Publications