Avoid potential penalties and fines by staying on top of tax paperwork
North Vancouver, BC -- (ReleaseWire) -- 03/16/2020 --Tax time is stress-inducing to say the least. For many people, the top priority is making sure taxes are covered—without considering the paperwork that's needed. However, it's impossible to file without certain vital documents. A new blog from US Tax Professionals in Vancouver has basic information on what's necessary to file and what to do if some documents are MIA. For more, go to https://us-taxprofessionals.com/newsletter.php#1
Before filing, everyone should receive a Form W-2, Wage and Tax Statement, from each employer for use in preparing a federal tax return. Employers must furnish this record of 2019 earnings and withheld taxes no later than January 31, 2020 (allowing several days for delivery if mailed).
If, for any reason, Form W-2 hasn't arrived, contact the employer(s) to find out if and when the W-2 was mailed. If it was mailed, it might have been returned to the employer due to an administrative error, such as an incorrect address. After contacting the employer(s), allow for a reasonable amount of time to issue or resend the W-2.
Another important document is Form 1099. People who receive certain types of income may receive a Form 1099 in addition to or instead of a W-2. Again, payers have until January 31 to mail these out.
In some cases, the information on the Form 1099 may be obtained from other sources. For example, a bank may put a summary of the interest paid during the year on the December or January statement of a savings or checking account. Or it may make the interest figures available through its customer service line or website. Some payers include cumulative figures for the year with their quarterly dividend statements.
It's usually unnecessary to wait for Form 1099 to arrive, provided the information (actual not estimated) is available to complete the tax return. In general, do not attach a 1099 series form to a return, except when Form 1099-R is received from Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. and shows income tax withheld. However, do keep all of the 1099 forms received for records.
If by mid-February any forms are still missing, it's time to contact the IRS at 1-800-829-1040. Make sure to have the following information handy:
-the employer's name and complete address, including zip code, and the employer's telephone number;
-the employer's identification number (if known);
-your name and address, including zip code, Social Security number, and telephone number.
If the W-2 has been lost or misplaced, it's generally advisable to contact the employer who issued it. However, the employer is allowed to charge a fee for replacing a W-2.
Even if Form W-2 is not received or it's impossible to get one by the tax filing deadline, it's possible to use Form 4852, Substitute for Form W-2, Wage and Tax Statement. However, this will delay any refund due while the information is verified.
If a corrected W-2 or 1099 is received after the return is filed and the information it contains does not match the income or withheld tax reported, then it's necessary to file an amended return on Form 1040X, Amended US Individual Income Tax Return.
Most taxpayers will also receive one or more forms relating to health care coverage in place during the previous year. If a Form 1095-A is expected, wait to file until the form is received—this is not the case with Forms 1095-B or 1095-C.
Filing income taxes can be a long and complicated process. For help filing US taxes in Vancouver or for questions related to American tax forms, contact US Tax Professionals in Vancouver at (604) 281-3318.
About US Tax Professionals
US Tax Professionals provide tax services for dual American and Canadian citizens in Vancouver. Founded in 2013, they specialize in taxation for US citizens and expats, taxation and accounting for business, cross-border taxation for US and Canadian citizens, as well as accounting and taxation of alternative investments, including private equity funds and hedge funds.
For more information, visit https://us-taxprofessionals.com/ or call (604) 281-3318.
US Tax Professionals
Company Website: https://us-taxprofessionals.com/