Business owners all over the world have not only the headache of looking after customers, clients and production but they also have to keep an eye on back-end process such as calculating and filling up forms for tax, handling delicate accounting tasks etc. To ease this heavy workload, many use accounting software that could manage their financial tasks with just minimal input from them. One such software is called QuickBooks.
This revolutionary software ensures smooth completion of your financial tasks with lesser mistakes. With QuickBooks software at hand you can track and manage your accounting activities easily and also fill up relevant tax forms that ease the tax filing process. One such form that you need to fill up is called IRS Form 1099. It is basically filled up by partnership firms and sole proprietors who use independent contractors for their business needs. These forms in general describe different types of income of the business.
1099 form filing in QuickBooks
The income from different sources uses different type of IRS Form 1099. Some of these are:
1099-A: This form is basically for Acquisition / Abandonment of Secured Property. Taking up a loan from bank or particular lender for purchasing property is quite common. However, at times we have to foreclose it or abandon the property from some unavoidable reason. In such situation you have to show the property as sold. For the same purpose, lender will issue Form 1099 – A with all the required information that showcases the sale of the property on your tax return.
1099-B: This form indicates and showcases Proceeds from Broker or/& Barter Exchange Transactions. This form is filled to show any bargaining or barter system initiated at the time of starting the company. Sometimes while starting a company you get into a barter exchange system for financial reasons or till you get a regular list of clients. If such transaction has taken place then you need to fill this form up with all the relevant details mentioned properly.
1099-C: This form is used to showcase Cancellation of Debt from the bank. While starting a business, loan from bank is something which we all take to ease the financial burden. At times due to special circumstances, bank cancels some amount left from the loan. This amount is then classified under income and is further showed through form 1099-C as the cancellation of debt. This cancelled amount is treated as forgiven amount of loan and is categorized under income section.
1099-K: Form 1099 – K is filled to represent network payments made through third party or merchant cards. This form indicates cash flow income from online sales made during the process of whole year. While filling up these forms ensure that the amount you enter in them matches with that present in your accounting records. If you find any mismatch with the amount, you should immediately get in touch with the sender to discuss the difference.