If you are required to file or more information returns, you must file electronically with the IRS. Electronic filing can be easily accomplished with accounting software such as Quicken and QuickBooks. There are also several websites that provide filing services. Payroll tax services can also file these forms for you. Independent contractors must be provided with a paper copy of the MISC unless they agree to accept an electronic version. Because it is a multi-part form, you need an original copy, which you can obtain from the IRS or stationery or office supply stores.
This relieves you of an administrative burden, so you may prefer to pay independent contractors electronically. This depends on how much the contractor was paid and how many electronic transactions there were during the year.
The information provided on this site is not legal advice, does not constitute a lawyer referral service, and no attorney-client or confidential relationship is or will be formed by use of the site. The attorney listings on this site are paid attorney advertising.
In some states, the information on this website may be considered a lawyer referral service. Please reference the Terms of Use and the Supplemental Terms for specific information related to your state. Grow Your Legal Practice. PA's web site and file specs. Tennessee: Form K.
TN's web site. We do not yet support W-2 for WI residents, but will give you a file. WI's web site. Alabama: Form K. AL's web site. AZ's web site. AR's web site. CO's web sites here and here. All recipients of NEC and K. CT's web site. All recipients of K. GA's web site. Hawaii: Form NEC. HI only accepts paper. HI's web site. ID's web site.
IN's web site. IA's web site. KY's web site. The account number is required if you have multiple accounts for a recipient for whom you are filing more than one information return of the same type. The account number is also required if you are an FFI making the election described in Regulations section 1. Additionally, the IRS encourages you to include the recipient's account number on paper forms if your system of records uses the account number rather than the name or TIN for identification purposes.
Also, the IRS will include the account number in future notices to you about backup withholding. The account number may be a checking account number, savings account number, brokerage account number, serial number, loan number, policy number, or any other number you assign to the payee that is unique and will distinguish the specific account.
This number must not appear anywhere else on the form, and this box may not be used for any other item unless the separate instructions indicate otherwise. Using unique account numbers ensures that corrected information returns will be processed accurately. If you are using window envelopes to mail statements to recipients and using reduced rate mail, be sure the account number does not appear in the window.
The U. Postal Service may not accept these for reduced rate mail. If you are required to file Forms , , , , , , or W-2G, you must also furnish statements to recipients containing the information furnished to the IRS and, in some cases, additional information. Be sure that the statements you provide to recipients are clear and legible. If you are not using the official IRS form to furnish statements to recipients, see Pub. Generally, a substitute is any statement other than Copy B of the official form.
You may develop them yourself or buy them from a private printer. However, the substitutes must comply with the format and content requirements specified in Pub. You may include the telephone number in any conspicuous place on the statements. This number must provide direct access to an individual who can answer questions about the statement. Although not required, if you report on other Forms and , or on Forms and , you are encouraged to furnish telephone numbers.
Different rules apply to furnishing statements to recipients depending on the type of payment or other information you are reporting and the form you are filing. If you are reporting a payment that includes noncash property, show the FMV of the property at the time of payment.
Report the type of payment information as described next for: a Dividend, interest, and royalty payments; b Real estate transactions; and c Other information. Statements may be sent by intraoffice mail if you use intraoffice mail to send account information and other correspondence to the recipient. The mailing must contain the official IRS Form or an acceptable substitute and may also contain the following enclosures: a Form W-2, applicable Form W-8, Form W-9, or other Forms W-2G, , , , , , and statements; b a check from the account being reported; c a letter explaining why no check is enclosed; d a statement of the person's account shown on Forms , , , , , or ; and e a letter explaining the tax consequences of the information shown on the recipient statement.
A statement of the person's account year-end account summary that you are permitted to enclose in a statement mailing may include information similar to the following: a the part of a mutual fund distribution that is interest on U.
No additional enclosures, such as advertising, promotional material, or a quarterly or annual report, are permitted. Even a sentence or two on the year-end statement describing new services offered by the payer is not permitted. Logos are permitted on the envelope and on any nontax enclosures. See section 1. A recipient statement may be perforated to a check or to a statement of the recipient's specific account. The check or account statement to which the recipient statement is perforated must contain, in bold and conspicuous type, the legend "Important Tax Return Document Attached.
The legend "Important Tax Return Document Enclosed" must appear in a bold and conspicuous manner on the outside of the envelope and on each letter explaining why no check is enclosed, or on each check or account statement that is not perforated to the recipient statement.
The legend is not required on any tax form, tax statement, or permitted letter of tax consequences included in a statement mailing.
Further, you need not pluralize the word "document" in the legend simply because more than one recipient statement is enclosed. If you provide Forms , , , , , , or W-2G recipient statements in a "separate mailing" that contains only these statements, Forms W-8 and W-9, and a letter explaining the tax consequences of the information shown on a recipient statement included in the envelope, you are not required to include the legend "Important Tax Return Document Enclosed" on the envelope.
Applicable box titles and numbers must be clearly identified, using the same wording and numbering as the official IRS form. For Form S, see Real estate transactions , later. All substitute statements to recipients must contain the tax year, form number, and form name prominently displayed together in one area of the statement. For example, they could be shown in the upper right part of the statement. If you are using substitutes, the IRS encourages you to use boxes so that the substitute has the appearance of a form.
You must furnish a statement to the transferor containing the same information reported to the IRS on Form S. You may furnish the statement to the transferor in person, by mail, or electronically. Furnish the statement at or after closing but by February 15 of the following year. The statement mailing requirements explained earlier do not apply to statements to transferors for proceeds from real estate transactions reported on Form S.
However, the statement mailing requirements do apply to statements to transferors for timber royalties reportable under section N on Form S. If you do not use a copy of the paper form, the form number and title of your substitute must be the same as the official IRS form.
All information required to be reported must be numbered and titled on your substitute in substantially the same manner as on the official IRS form.
However, if you are reporting a payment as "Other income" in box 3 of Form MISC, you may substitute appropriate explanatory language for the box title. For example, for payments of accrued wages to a beneficiary of a deceased employee required to be reported on Form MISC, you might change the title of box 3 to "Beneficiary payments" or something similar.
Appropriate instructions to the recipient, similar to those on the official IRS form, must be provided to aid in the proper reporting of the items on the recipient's income tax return.
For payments reported on Form B, rather than furnish appropriate instructions with each Form B statement, you may furnish to the recipient one set of instructions for all statements required to be furnished to a recipient in a calendar year. Except for royalties reported on Form MISC or S, the statement mailing requirements explained earlier do not apply to statements to recipients for information reported on the forms listed under Other information , earlier.
You may combine the statements with other reports or financial or commercial notices, or expand them to include other information of interest to the recipient. Be sure that all copies of the forms are legible. Generally, you must furnish Forms , , , , and W-2G information by January 31, Also, this applies to statements furnished as part of a consolidated reporting statement. However, you may issue them earlier in some situations, as provided by the regulations.
Savings Bonds at the time of redemption. Brokers and barter exchanges may furnish Form B anytime but not later than February 15, Form SB must generally be furnished by February 15, However, if notice of a transfer to a foreign person is not received until after January 31, , the due date is 30 days after the date notice is received.
Form LS must be furnished to reportable policy sale payment recipients by February 15, Form LS must be furnished to issuers by January 18, , at the latest, but must be furnished by the later of 20 calendar days after the reportable policy sale or 5 calendar days after the end of the applicable state law rescission period if the later date occurs before January 18, Furnish Form BTC to the recipient for each month in which a tax credit amount is allowable to the recipient on or before the 15th day of the 2nd calendar month after the close of the calendar month in which the credit is allowed.
Donee organizations required to issue Form C must furnish the acknowledgment to a donor within 30 days of the sale of the vehicle if it is sold without material improvements or significant intervening use or within 30 days of the contribution. Trustees or issuers of traditional IRAs must furnish Form to participants with a statement of the value of the participant's account, and RMD, if applicable, by January 31, For real estate transactions, you may furnish Form S to the transferor at closing or by mail on or before February 15, Filers of Forms or SA who furnish a statement of FMV of the account to the participant by January 31, , with no reportable contributions, including rollovers, made in , need not furnish another statement by May 31, , to the participant to report zero contributions.
If another statement is not furnished to the participant, the statement of the FMV of the account must contain a legend designating which information is being filed with the IRS. Form ESA must be furnished to the beneficiary by May 2, Form QA must be furnished to the beneficiary by March 15, See the Guide to Information Returns , later, for the date other information returns are due to the recipient.
If the statement is properly addressed and mailed, or, with respect to electronic recipient statements, posted to a website, on or before the due date, it will be deemed timely furnished. If the regular due date falls on a Saturday, Sunday, or legal holiday in the District of Columbia, furnish by the next business day.
A business day is any day that is not a Saturday, Sunday, or legal holiday in the District of Columbia. If you are required to furnish a written statement Copy B or an acceptable substitute to a recipient, then you may generally furnish the statement electronically instead of on paper, but only if you meet the requirements discussed later in this section.
Also, it includes Form W-2G except for horse and dog racing, jai alai, sweepstakes, wagering pools, and lotteries. Until further guidance is issued to the contrary, Form C may not be furnished electronically. If you meet the requirements that follow, you are treated as furnishing the statement. The recipient must consent in the affirmative and not have withdrawn the consent before the statement is furnished.
The consent by the recipient must be made electronically in a way that shows that he or she can access the statement in the electronic format in which it will be furnished. You must notify the recipient of any hardware or software changes prior to furnishing the statement. A new consent to receive the statement electronically is required after the new hardware or software is put into service.
Prior to furnishing the statements electronically, you must provide the recipient a statement with the following statements prominently displayed. If the recipient does not consent to receive the statement electronically, a paper copy will be provided. The scope and duration of the consent. For example, whether the consent applies to every year the statement is furnished or only for the statement for a particular year, as applicable, immediately following the date of the consent.
How to withdraw the consent. The consent may be withdrawn at any time by furnishing the withdrawal in writing electronically or on paper to the person whose name appears on the statement.
Also, confirmation of the withdrawal will be in writing electronically or on paper. Notice of termination. The notice must state under what conditions the statements will no longer be furnished to the recipient.
A description of the hardware and software required to access, print, and retain a statement, and a date the statement will no longer be available on the website.
Ensure the electronic format contains all the required information and complies with the applicable revenue procedure for substitute statements to recipients in Pub. Post, on or before the due date, the applicable statement on a website accessible to the recipient through October 15 of that year.
Inform the recipient, electronically or by mail, of the posting and how to access and print the statement. For information regarding the electronic furnishing of Forms W-2, which the IRS generally applies to the forms addressed by these instructions, see Regulations section For additional specific instructions on the electronic furnishing of:.
You may request an extension of time to furnish the statements to recipients by faxing a letter to:. The letter must include a payer name, b payer TIN, c payer address, d type of return Form S, Form W-2, specific family form , e a statement that your extension request is for providing statements to recipients, f reason for delay, and g the signature of the payer or authorized agent.
Your request must be received no later than the date on which the statements are due to the recipients. If your request for an extension is approved, generally you will be granted a maximum of 30 extra days to furnish the recipient statements. To be subject to backup withholding, a payment must be a reportable interest including tax-exempt interest and exempt-interest dividends or dividend payment under section a , a , or if the patronage dividend is paid in money or qualified check , or an "other" reportable payment under section , A a , , A, N, or W.
If the payment is one of these reportable payments, backup withholding will apply if:. For interest, dividend, and broker and barter exchange accounts opened or instruments acquired after , the payee fails to certify, under penalties of perjury, that the TIN provided is correct;. For interest and dividend accounts or instruments, you are notified that the payee is subject to backup withholding under section a 1 C ; or.
For interest and dividend accounts opened or instruments acquired after , the payee fails to certify to you, under penalties of perjury, that he or she is not subject to backup withholding. See 4. Payee failure to certify that he or she is not subject to backup withholding under When to apply backup withholding, later. The payment is also a withholdable payment under chapter 4 sections — that is made to a recalcitrant account holder that is a U.
If you do not collect and pay over backup withholding from affected payees as required, you may become liable for any uncollected amount. Some payees are exempt from backup withholding. For a list of exempt payees and other information, see Form W-9 and the separate Instructions for the Requester of Form W Examples of payments to which backup withholding does not apply include but are not limited to the following.
Distributions from a pension, annuity, profit-sharing or stock bonus plan, any IRA, an owner-employee plan, or other deferred compensation plan. Gambling winnings if regular gambling winnings withholding is required under section q. However, if regular gambling winnings withholding is not required under section q , backup withholding applies if the payee fails to furnish a TIN.
Reportable payments that are withholdable payments made to a recalcitrant account holder that is a U. Withhold on payments made until the TIN is furnished in the manner required. Special backup withholding rules may apply if the payee has applied for a TIN. This form then becomes an "awaiting-TIN" certificate, and the payee has 60 days to obtain a TIN and furnish it to you.
If you do not receive a TIN from the payee within 60 days and you have not already begun backup withholding, begin backup withholding and continue until the TIN is provided. The day exemption from backup withholding applies only to interest and dividend payments and certain payments made with respect to readily tradable instruments.
Therefore, any other payment, such as NEC, is subject to backup withholding even if the payee has applied for and is awaiting a TIN. For information about whether backup withholding applies during the day period, see Regulations section You may choose to withhold on any reportable payment made to the account s subject to backup withholding after receipt of an incorrect TIN notice from the IRS, but you must withhold on any reportable payment made to the account more than 30 business days after you received the notice.
You are then required to promptly furnish a "B" notice, or an acceptable substitute, to the payee. For further information, see Regulations section If you receive two incorrect TIN notices within 3 years for the same account, follow the procedures in Regulations section You may choose to withhold on any reportable payment made to the account s subject to backup withholding after receipt of the notice, but you must withhold on any reportable payment made to the account more than 30 business days after you receive the notice.
The IRS will notify you in writing when to stop withholding, or the payee may furnish you a written certification from the IRS stating when the withholding should stop. In most cases, the stop date will be January 1 of the year following the year of the stop notice. You must notify the payee when withholding under this procedure starts. Withhold on reportable interest and dividends until the certification has been received.
For exceptions to these general timing rules, see section e. For special rules on backup withholding on gambling winnings, see the separate Instructions for Forms W-2G and Report backup withholding, voluntary withholding on certain government payments, and withholding from gambling winnings, pensions, annuities, IRAs, military retirement, and Indian gaming profits on Form Generally, file Form for by January 31, For more information, including the deposit requirements for Form , see the separate Instructions for Form , and Pub.
Do not report on Form any income tax withholding reported on the following forms. Form W-2, including withholding on distributions to plan participants from nonqualified plans that must be reported on Form , and may be reported on Form , Form , or Schedule H Form The following penalties generally apply to the person required to file information returns.
The penalties apply to paper filers as well as to electronic filers. For information on the penalty for failure to file electronically, see Penalty, earlier, in part F.
If you fail to file a correct information return by the due date and you cannot show reasonable cause, you may be subject to a penalty. The penalty applies:. If you fail to file paper forms that are machine readable and applicable revenue procedures provide for a machine-readable paper form.
The amount of the penalty is based on when you file the correct information return. The penalty is as follows. The penalty will not apply to any failure that you can show was due to reasonable cause and not to willful neglect. In general, you must be able to show that your failure was due to an event beyond your control or due to significant mitigating factors.
You must also be able to show that you acted in a responsible manner and took steps to avoid the failure. An inconsequential error or omission is not considered a failure to include correct information. An inconsequential error or omission does not prevent or hinder the IRS from processing the return, from correlating the information required to be shown on the return with the information shown on the payee's tax return, or from otherwise putting the return to its intended use.
Errors and omissions that are never inconsequential are those related to a a TIN, b a payee's surname, and c any money amount except as provided, later, with respect to the safe harbor for de minimis dollar amount errors.
De minimis rule for corrections. Even though you cannot show reasonable cause, the penalty for failure to file correct information returns will not apply to a certain number of returns if you:. Either failed to include all the information required on a return or included incorrect information, and.
Safe harbor for de minimis dollar amount errors. If you fail to provide correct payee statements and you cannot show reasonable cause, you may be subject to a penalty. The penalty applies if you fail to provide the statement by the due date January 31 for most returns; see the Guide to Information Returns , later , you fail to include all information required to be shown on the statement, or you include incorrect information on the statement.
The amount of the penalty is based on when you furnish the correct payee statement. It is a separate penalty, and is applied in the same manner as the penalty for failure to file correct information returns by the due date section , described earlier. An inconsequential error or omission cannot reasonably be expected to prevent or hinder the payee from timely receiving correct information and reporting it on his or her income tax return or from otherwise putting the statement to its intended use.
Errors and omissions that are never inconsequential are those relating to a a dollar amount, except as provided, later, with respect to the safe harbor for de minimis dollar amount errors; b a significant item in a payee's address; c the appropriate form for the information provided that is, whether the form is an acceptable substitute for the official IRS form ; and d whether the statement was furnished in person or by "statement mailing," when required.
See the Instructions for Forms E and T for additional information. If one or more dollar amounts are incorrect on an information return filed with the IRS or on a payee statement furnished to a recipient, no correction of the dollar amount shall be required, and the return shall be treated as having been filed or the payee statement furnished as correct if:. This safe harbor provision shall not apply if a recipient to whom a statement is required to be furnished elects to receive a corrected statement.
In that case, a corrected return must be filed with the IRS and a corrected payee statement furnished to the recipient. See section If you are required under section f 12 A to furnish a contemporaneous written acknowledgment to a donor and you knowingly furnish a false or fraudulent Form C, or knowingly fail to furnish a Form C within the applicable day period, you may be subject to a penalty. See the Instructions for Form C for more detailed information. If you willfully file a fraudulent information return for payments you claim you made to another person, that person may be able to sue you for damages.
Generally, payments to corporations are not reportable. See, for example, Regulations section 1. However, you must report payments to corporations for the following. For additional reporting requirements, see Rev. Payments made in a reportable policy sale Form LS. Reporting is generally required for all payments to partnerships. Income Tax Return for Estates and Trusts. If you have filed Form for a grantor trust in the past and you want to choose the Form filing method for , you must have filed a final Form for To change reporting method, see Regulations section 1.
If you are the payer and have received a Form W-8IMY from a foreign intermediary or flow-through entity, follow the instructions for completing Form , later. An FI is any person who is not a U. The intermediary can be a qualified intermediary or a nonqualified intermediary. An FFI other than a U. A foreign person that has a home office or has a branch that is an eligible entity as described in Regulations section 1.
A foreign branch or office of a U. For details on QI agreements, see Rev. An NQI is any intermediary that is not a U. An FTE is a foreign partnership other than a withholding foreign partnership , a foreign simple trust or foreign grantor trust other than a withholding foreign trust , or, for payments for which a reduced rate of withholding is claimed under an income tax treaty, any entity to the extent the entity is considered to be fiscally transparent under section with respect to the payment by an interest holder's jurisdiction.
A withholding foreign partnership or withholding foreign trust is a foreign partnership or a foreign simple or grantor trust that has entered into a withholding agreement with the IRS in which it agrees to assume primary withholding responsibility for all payments that are made to it for its partners, beneficiaries, or owners.
See Rev. A nonwithholding foreign partnership is any foreign partnership other than a withholding foreign partnership. A nonwithholding foreign simple trust is any foreign simple trust that is not a withholding foreign trust. A nonwithholding foreign grantor trust is any foreign grantor trust that is not a withholding foreign trust.
An entity is treated as fiscally transparent with respect to an item of income to the extent that the interest holders in the entity must, on a current basis, take into account separately their shares of an item of income paid to the entity, whether or not distributed, and must determine the character of the items of income as if they were realized directly from the sources from which they were realized by the entity.
For example, partnerships, common trust funds, and simple trusts or grantor trusts are generally considered to be fiscally transparent with respect to items of income received by them.
If you are the payer and do not have a Form W-9, appropriate Form W-8, or other valid documentation, or you cannot allocate a payment to a specific payee, prior to payment, you are required to use certain presumption rules to determine the following. See Regulations sections 1. Under these presumption rules, if you must presume that the payee is a U. However, if before filing Form with the IRS the recipient is documented as foreign, then report the payment on a Form S. Conversely, if you must presume that the payee is a foreign recipient and prior to filing Form S with the IRS you discover that the payee is a U.
If you use the day grace period rule to presume a payee is foreign, you must file a Form S to report all payments subject to withholding during the grace period. If, after the grace period expires, you discover that the payee is a U. If you know that a payee is a U. For payments made to multiple recipients: a enter the name of the recipient whose status you relied on to determine the applicable rate of withholding; and b on the second name line, enter "IMY" followed by the name of the QI, NQI, or FTE.
However, if the QI has assumed primary Form reporting or backup withholding responsibility, you are not required to issue the Form or to backup withhold. See Qualified intermediary QI , earlier. If you cannot reliably associate a payment with valid documentation and are required to presume a payee is a U. File a Form and enter "unknown recipient" on the first name line.
A payer that is required to report payments made to a U. Report unallocated payments using the presumption rules described above. A foreign partnership that has one or more U. The following payments are not subject to reporting by a non-U.
A foreign source payment paid and received outside the United States. For example, see Regulations section 1. Gross proceeds from a sale effected outside the United States. An NQI or QI that provides another payer all the information sufficient for that payer to complete Form reporting. However, if an NQI or QI does not provide sufficient information for another payer to report a payment on Form , the intermediary must report the payment.
A payment made by certain FFIs for which an exception to reporting applies under Regulations section 1. For answers to your questions about reporting on Forms , , , , , , , W-2, W-2G, and W-3, you may call a toll-free number, You may still use the original telephone number, not toll free.
For other tax information related to business returns or accounts, call The IRB, published weekly, contains newly issued regulations, notices, announcements, legislation, court decisions, and other items of general interest. You may find this publication useful to keep you up to date with current developments. Their job is to ensure that every taxpayer is treated fairly and that you know and understand your rights.
They can offer you free help with IRS problems that you can't resolve on your own. They know this process can be confusing, but the worst thing you can do is nothing at all! The TAS can help if you can't resolve your tax problem and:. You've tried repeatedly to contact the IRS but no one has responded, or the IRS hasn't responded by the date promised. If you qualify for their help, you'll be assigned to one advocate who'll be with you at every turn and will do everything possible to resolve your problem.
Here's why they can help. The TAS also works to resolve large-scale, systemic problems that affect many taxpayers. If you know of one of these broad issues, please report it to them by going to IRS. The TAP listens to taxpayers, identifies taxpayer issues, and makes suggestions for improving IRS services and customer satisfaction.
Visit IRS. Otherwise, you can go to IRS. Your order should arrive within 10 business days. You can also mail an order to the address at the mail icon below.
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We and our partners process data to: Actively scan device characteristics for identification. I Accept Show Purposes. Your Money. Personal Finance. Your Practice. Popular Courses. Part Of. W- Forms. Forms — Forms —A. Taxes Income Tax. Table of Contents Expand. Who Should Receive a Form? There Are Many Types of s. If You Don't Receive Your s. Stay on Top of a New Address. Report Errors Immediately. Report Every Don't Overlook a Form. Don't Forget State Taxes. When to Ask for Help.
The Bottom Line. Key Takeaways Form is used to report certain types of non-employment income to the IRS, and there are many different types. As of , certain types of non-employment income for freelance and independent contract work must be reported on a —NEC. The deadline to mail s to taxpayers is usually Jan. Even if a form has not been received, taxpayers are responsible for paying the taxes owed on any income earned during the tax year.
If you receive an incorrect form and the payer already sent it to the IRS, ask the originator to send a corrected form. Article Sources. Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate.
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