The Internal Revenue Service (IRS) warns early filers to wait for “key documents” before submitting their tax return in 2023. In an announcement on the first week of December, early filers were advised to wait for Form 1099-K to be released, says Dore.
The Internal Revenue Service (IRS) has warned early filers. Those who want to submit their 2022 tax return in January or early February 2023, must wait for documents like Form 1099-K to be released. Form 1099-K reports the income for third-party payment networks like Venmo or Paypal.
Failure to report 1099-K income may result in an obligation to pay money and an amended return to be filed. According to Albert Campo, a Certified Public Accountant, the deadline for companies to distribute the 1099-K forms is on January 31. This means that tax filers should reserve ample time for the forms to be mailed.
Importance of Including All Tax Forms
In filing a tax return, it is essential to report accurate details from all the tax forms. These are known as “information returns” where taxpayers are sent with forms by employers and financial institutions. These forms are where taxable activities should be reported and given to IRS every year.
Assuming all details are correct, tax returns should match the information returns. The IRS system automatically identifies returns that mismatch. To avoid the risk of error notices and penalties, the filer must wait for all tax forms and include all the details, according to Dore.