Tag: 1099
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1099 and W2 penalties are higher this year
The Trade Preferences Extension Act of 2015 doubled the amounts of penalties for businesses that mishandle filing of W2 forms for employees and 1099 forms for contractors and customers. W2 is the primary tool for tracking wages and benefits. Form 1099 is one of the IRS’s main weapons in fighting under-reporting by self-employed taxpayers. The recently…