In the final months of the year, there are only a few options left to you to lower your taxable income and reduce your tax bill. This is the #1 topic for financial planners assisting their clients.
The W-9 is critically important for businesses to collect from anyone to whom they will make payments for services. The W-9 is required in order to issue Form 1099-NEC, a new form required by the IRS for the 2020 tax year.
The IRS changes Form 1099 for 2020 Tax Year!
For the 2020 Tax Year, the IRS is requiring a new form, the 1099-NEC to report nonemployee compensation. The 1099-NEC is a whole form dedicated to BOX 7 (nonemployee compensation) formerly on the Form 1099-MISC.
I frequently get asked the question, do I have to keep the original copies of receipts and invoices as backup for expense deductions taken on my income tax returns in case of an IRS Audit? The organizational convenience and compact storage capability of digital medium is an easy sell for most clients but doubts about the validity of digital receipts …