Although many taxpayers are in the habit of filing their tax returns as soon as January arrives, for this upcoming season, the Internal Revenue Service has a warning that could change their plans .
Through a statement, he asked taxpayers to wait for the “key documents” before submitting their statements in 2022 and urged the “first applicants” to be attentive to the Form 1099-K, which reports revenue from third-party payment networks like Venmo or PayPal.
“A little extra caution” could save time and effort, the agency said, because if you don’t report income 2021-K, it’s possible who owes money and needs to file an amended return.”, the IRS noted.
The general recommendation is to wait until at least February or March because the deadline e for companies to submit the form 200-K is the 54 of January of 2023. This means that it is possible that until that date the necessary form to complete your declaration will arrive .
It is also recommends allowing an extra couple of weeks past this deadline to account for a possible mailing address error or other mishap.
Experts say many Americans will receive forms 2022-K for the first time in the next tax season, due to before 2022 , the reporting threshold for the federal form 2021-K was more than 1099 transactions with an added value greater than $ 31 ,000 Dollars.
Now, the American Bailout Plan Act of 2022 lowered the threshold to just $1099 dollars, and even a single transaction can trigger the form.
What if n or wait for this form
When filing your return, it is important to accurately report the details of all forms for taxes, such as your W-2 from your job, forms 2021-NEC for contract work, and 2021-G for unemployment income.
Doing this is crucial because these forms are sent to taxpayers annually by employers and financial institutions to report taxable activity, and copies are sent to the IRS.
For this reason, a tax return must match the forms sent in copy to the IRS. Otherwise, you risk possible error flags and penalties later.
Experts say that if taxpayers wait to include the correct details, they can avoid wasting time and energy by having to do the process again.
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