Tax Season 2022

Written by Ken Kramer. Posted in Blog, Uncategorized

The 2022 Tax Season is strting early

The IRS is starting its tax filing season earlier than it has in the past

The U.S. tax season will start on Jan. 24, which is “when the tax agency will begin accepting and processing 2021 tax year returns,” the IRS said in a Jan. 10 announcement. This is more than two weeks earlier than the agency started the filing season last year, according to the U.S. Department of the Treasury.

The January 24 start date for individual tax return filers will allow the IRS time over the course of the coming weeks to do additional programming and testing that is critical to ensure that IRS systems will run smoothly this filing season and will help taxpayers claim the remainder of their Child Tax Credit and remaining stimulus funds in a timely manner when filing their 2021 returns.

“Planning for the nation’s filing season process is a massive undertaking, and IRS teams have been working non-stop these past several months to prepare,” IRS Commissioner Chuck Rettig said in a statement. “The pandemic continues to create challenges, but the IRS reminds people there are important steps they can take to help ensure their tax return and refund don’t face processing delays.”

The agency is advising you file your returns as early as possible

In order to prevent delays and help the tax season flow more smoothly, one of the steps you can take is filing your returns as early as possible in accordance with the Jan. 24 start date. The IRS free filing program will open on Jan. 14, allowing taxpayers the opportunity to begin filing returns through the agencies’ partners earlier in order for them to be transmitted to the IRS starting Jan. 24. “It’s never too early to get ready for the tax-filing season ahead,” the agency says.

And getting ahead will help you navigate another troubling year ahead for the IRS. Treasury Department officials warned on Jan. 10 that the IRS will still be facing “enormous challenges” during this year’s tax filing season, which will likely make it another “frustrating season” for taxpayers, per The Washington Post.

A general extension for the tax deadline is not expected this year

In both 2020 and 2021, the IRS ended up extending the tax deadline into May in order to give taxpayers more time to file their tax returns amid the pandemic. But the agency has no plans to give most people extensions this year, according to The Washington Post. Instead, the tax deadline is April 18 for almost all taxpayers.

Tips to make filing easier

To avoid processing delays and speed refunds, the IRS urges people to follow these steps:
Organize and gather 2021 tax records including Social Security numbers, Individual Taxpayer Identification Numbers, Adoption Taxpayer Identification Numbers, and this year’s Identity Protection Personal Identification Numbers valid for calendar year 2022.

Check IRS.gov for the latest tax information, including the latest on reconciling advance payments of the Child Tax Credit or claiming a Recovery Rebate Credit for missing stimulus payments. There is no need to call.

Set up or log in securely at IRS.gov/account to access personal tax account information including balance, payments, and tax records including adjusted gross income.

Make final estimated tax payments for 2021 by Tuesday, Jan.18, 2022, to help avoid a tax-time bill and possible penalties.

Individuals can use a bank account, prepaid debit card or mobile app to use direct deposit and will need to provide routing and account numbers. Learn how to open an account at an FDIC-Insured bank or through the National Credit Union Locator Tool.

File a complete and accurate return electronically when ready and choose direct deposit for the quickest refund.

Key filing season dates

There are several important dates taxpayers should keep in mind for this year’s filing season:
January 14: IRS Free File opens. Taxpayers can begin filing returns through IRS Free File partners; tax returns will be transmitted to the IRS starting January 24. Tax software companies also are accepting tax filings in advance.
January 18: Due date for tax year 2021 fourth quarter estimated tax payment.
January 24: IRS begins 2022 tax season. Individual 2021 tax returns begin being accepted and processing begins
January 28: Earned Income Tax Credit Awareness Day to raise awareness of valuable tax credits available to many people – including the option to use prior-year income to qualify.
April 18: Due date to file 2021 tax return or request extension and pay tax owed due to Emancipation Day holiday in Washington, D.C., even for those who live outside the area.
April 19: Due date to file 2021 tax return or request extension and pay tax owed for those who live in MA or ME due to Patriots’ Day holiday
October 17: Due date to file for those requesting an extension on their 2021 tax returns

Insure you have the forms you need to file your taxes

The right options for easy wage and information reporting, inFORM Decisions offers tax forms in just about every paper median for all your tax season preparation needs. W2, 1099, ACA, and many more are available as blank laser forms, pressure seal forms, continues forms, and more. Please call (800) 858-5544 or (949) 709-5838 Ext.123 to order your 2021 tax form paper and envelopes or email Erin at erin@informdecisions.com.

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Accounts Payable Automation Solutions

Written by Ken Kramer. Posted in Blog

There’s a way better way to do invoice-to-pay

The efficiency of your AP team’s invoice processing method can have an enormous impact on operations across your organization, ultimately affecting your bottom line. Invoices are just plain painful, and companies usually tackle the AP Invoice Processing problem with more staff. If ignored, delays and inaccuracies in your AP process will create inefficiencies that ripple through your business, generating unnecessary cost, frustrating other departments, and straining vendor relationships. There’s potential for wasting time and creating errors throughout the AP process, including:

• Late or lost invoices
• Incorrect or inaccurately entered data
• Invoices without required purchase order numbers
• Difficulties retrieving invoice data or yearend 1099 reporting

One or more of these factors can take several days for multiple employees to resolve, and could hinder other employees, departments, or even end customers. No company wants to be known for late payments, and no company needs the notoriety of negatively impacting its vendors. The importance of AP process efficiency cannot be understated: it’s a business-critical matter that you should monitor and address on a routine basis.

To determine what improvements need to be made to your AP processes, first and foremost, look at your invoice data capture method. Examine steps that require paper or manual data processing, as they’re error-prone and take the most time and resources to complete. Chances are there’s at least some manual work involved as 58% of invoices are still being entered manually into AP systems in a typical enterprise.

There are numerous qualitative factors that you should be aware of as you evaluate your AP processes. While you can’t measure them directly, all have a quantitative influence on your department’s performance and your business results. Understanding these elements and their effects will reinforce your proposals for improvements to your bottom line.
For example, map out your invoice processing operations to gauge their complexity. You can start by listing the fundamental steps of any AP process, then break each individual step down into its components, such as the step’s resource, manual process or software used to facilitate or complete the step, and the time it takes to complete each step.
The fundamental steps of the AP process are:

• Invoice receipt and sorting
• Input
• Data extraction
• PO matching
• Verification of vendor details
• Invoice approval
• Invoice payment
• Auditing and 1099 reporting

As you’re going through your AP team’s workflow, you’ll need to find the answer to several questions, such as:

• Do you receive both electronic and paper invoices?
• What forms of electronic invoice are you receiving (e.g. doc, pdf, XLS)?
• How do the invoices get filed or inputted?
• Are you using more than one invoice delivery method (e.g. mail, email, FAX)?
• Does the same flow apply to all invoice formats, or do you have different flows according to format?
• Do you need to match POs to all invoices, or are you also processing invoices that don’t require POs?
• Are your POs standardized across your business, or do different departments have their own PO systems?
• Are all invoices centralized or stored in various locations throughout your organization’s network?

This is just a handful of the queries that will arise as you study your AP team’s invoice processing.

Once you’ve reviewed your AP processes and identified its inefficiencies, you’ll be able to clearly see opportunities for improvement. You may discover that your invoice data capture method is causing inefficiencies. One of the most critical steps in invoice processing is data extraction. A touchless solution that teaches itself how to capture information from multiple document formats accurately can boost AP efficiency considerably. There are capture product that scan and extract invoice information into searchable invoice PDFs like iCapture from inFORM Decisions routing captured invoices to 60+ systems. You can also streamline your AP operations by automatically printing checks or emailing digital documents to recipients on the IBM i using iDocs. You can also utilize your valuable electronic data and iForms to facilitate year ending reporting and 1099 forms electronically. Kickoff AP invoice workflow using our iWorkflow solution to map the steps from the point at which goods are received to the point at which invoices are paid.

Unleash your team’s efficiency with iDocs suite of accounts payable solutions and say goodbye to filing cabinets and lost invoices. Accounts payable process automation frees your team from the manual AP tasks that are slowing down your business, all while giving you greater control over your spend management with the click of a button. An automated Accounts Payable solution can help an organization reduce costs, keep more of their hard-earned profits and keep employees happy and productive.

Ready to take the leap? inFORM Decisions has a series of advanced AP and Invoice Solutions that are affordable for any size business, and any size AP department. Contact us today for your ticket to a streamlined paperless invoice process.

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The incredibly powerful IBM i PDF Conversion Engine

Written by Ken Kramer. Posted in Blog

Simple to Use & Easy to Manage:

The incredibly powerful IBM i PDF Conversion Engine by inFORM Decisions

inFORM Decisions’ IBM i and Power Systems Native iPDF Engine converts spool files and PCL files into PDF (Portable Document Format) files. This powerful conversion engine promotes Automation, Distribution, and Functionality while keeping the user experience simple and friendly to use.

1. Rather than the manual use of Operations Navigator or other laborious processes, iPDF will create PDF files from a spool file without any human intervention.
A fully automated solution that always runs when you need it, even outside of working hours, iPDF includes an automatic output queue processing program that will monitor any designate output queue. When any spooled file appears in this output queue it will be automatically converted to a PDF and placed in any desired destination. Usage is even easier utilizing the convenient dashboard monitor to create, start, end and manage all PDF jobs from a single screen. Jobs can also be initiated real-time and submitted using embedded RPG or CL commands.

2. IBM native conversion eliminates the need to download to a PC (or secondary server) to process PDF files, thus improving security and speed of PDF document conversion.
Native conversion leverages the power of your IBM i (AS/400) investment to convert *SCS and *USERASCII spool files to PDF or TIFF format with full-color overlays small enough to be emailed or stored – delivering more security and faster processing of documents and reports.

3. Much, much more than a simple conversion tool, iPDF enables report distribution.
iPDF facilitates report distribution, PDF document archival and retrieval, bursting, sorting and outputting PDF reports and custom business forms in the open PDF standard. Once the PDFs are created they can be easily viewed using the free Acrobat Reader wherever they are sent.

4. Benefit from cloud repository services.
The PDF attachment can be dynamically assigned descriptive names and deposited on the target IFS, any shared drive, remote PC, Microsoft OneDrive or SharePoint. If you supply user and/or owner passwords scraped from the originating spool file iPDF can password encrypt the generated PDF documents. This would enable viewing only by the intended recipient. Think deposit tickets.

5. Expand your IBM i applications with modern functions and save money by digitally distributing reports.
Some clients have reduced the paper they print by 90%, saving them thousands each month. iPDF paperless report conversion software will copy spool files to PDF or TIFF easily, dynamically naming, emailing and archiving without programming or additional hardware.

6. Reduce users’ dependence on your IT staff in finding reports or converting them into an electronic format.
Automated report distribution and parsing also reduce the number of reports that your IT staff needs to write. Employees save countless hours because they no longer have to file, search, print and mail paper reports.

For a quick product demonstration of how to use the iPDF Monitor to convert your spool files to PDF or TIFF use the link below.

DEMO

Call (800) 858-5544 / (949) 709-5838 or visit us at www.informdecisions.com for more information about iPDF or our acclaimed iDocs suite of IBM i products.

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OCEAN Tech Con 21 – inFORM Decisions

Written by Ken Kramer. Posted in Blog

Virtual IBM i Tech Conference

IBM keeps rolling out enhancements that not only improve the IBM I platform, but make it easier to use Open source tools. Smart IBM I customers are adapting these new tools rapidly and are requiring some new hires to have some knowledge, not years, of these new features. They also pay a premium for these skills.

Two Days of Inspiration & Innovation!

OCEAN TechCon20
IBM i Technical Conference
Thursday, July 15, 2021 – starting at 8:30 AM, and Friday, July 16, 2021 starting at 1:00 PM

Two Days of Training, Networking & Insight into the Latest IBM Power Systems IBM i Technologies. Leverage the best of both the native IBM i as well as open platform solutions.

We’re passionate about continuing education on the IBM Power Systems platform !

Join Document Management Specialist and IBMi Professional Orlando Ferrer,
as he shares how inFORM Decisions has been successfully helping IBMi customers automate the processing, distributing, storing, retrieving and sharing of documents natively on the IBMi. See how managing documents goes beyond printing and emailing spool files. Learn about the benefits of using an alternative to the cumbersome and obsolete AFPDS/IPDS printing. Find out how customers have benefitted from strategically managing documents & reports being distributed directly from the IBMi. Discover the power of converting inbound documents into useful information that can be used to run your business more efficiently while eliminating the need for file cabinets. Instead, your laptop or desktop computer can record your business transactions, send and store documents, and keep your financial records without taking up any added space. Multiple staffers can access authorized documents simultaneously boosting efficiency.

Find the complete #OceanTechCon21 details here.

Call (800) 858-5544 / (949) 709-5838 or visit us at www.informdecisions.com for more information about our booth at the conference. Hoping to see you there!

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The IBM i Server Platform

Written by Ken Kramer. Posted in Blog

IBM i: The Most Amazing Server Platform You’ve Probably Never Heard Of

The IBM i

The unique characteristics of the IBM i platform and the legendary loyalty of its users mean that there is a large void between those who know the platform intimately and those who are unfamiliar with it.

The IBM i is misunderstood

IBM i has one of the richest histories in the marketplace and has managed to sustain one of the most loyal customer bases in the market today. However, because of its long history, the platform is also vulnerable to biases from nonusers — primarily because these nonusers have not had an opportunity to get acquainted with the platform. This lack of understanding is both to the detriment of organizations that, as a result, do not consider the platform and to IBM.

The IBM i, AIX, and Linux versatility

Organizations that run their business on the IBM i platform take advantage of the fact that the platform requires minimal administrative support to run high-volume transactions and maintain the core enterprise database; that it is easy to upgrade when new operating system (OS) versions arrive; that thousands of Independent Software Vendor (ISV) solutions and custom applications simply run on the platform without requiring complex integrations; and that the platform is open source–friendly and supports modern popular languages. Open source software runs on IBM i by leveraging the POWER processor’s OS versatility. This versatility is such that organizations can run all three Power Systems operating systems (IBM i, AIX, and Linux) in different partitions on one physical server.

Safest server platform available

Security on the IBM i platform is flexible enough to meet the requirements of a wide range of users and situations. In a world with the level of threats we have today (Trojans, ransom wear and hardware exposures), a platform with integrated hardware and software that is nearly invulnerable to these threats, is a godsend. Particularly after the passage of General Data Protection Regulations (GDPRs) for the European Union and similar laws in California and other parts of the world. This is not to mention a requirement for folks who want to avoid the infamy of a major breach (explaining why banking and finance firms are huge fans). IBM i’s enhanced security features implement the latest industry standard practices that protect critical business applications and data.

Independent Service Vendor

inFORM Decisions has been an Independent Service Vendor specializing in state of the art Document Automation solutions for the IBM i – AS/400 arena since 1994. We at inFORM Decisions believe that the combination of POWER9 and IBM i provides a strong enterprise platform for organizations of all sizes that prefer a platform that takes care of business rather than the business having to take care of the system. Our experts can show you how to unleash your systems power and recoup countless hours of productivity! inFORM Decisions is committed to the IBM i platform forever!

Read more:
So, you’re using an IBM I server …..

Call (800) 858-5544 / (949) 709-5838 or visit us at www.informdecisions.com for more information about our acclaimed iDocs suite of IBM i products.

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So, you’re using an IBM i server…

Written by Ken Kramer. Posted in Blog

So, you’re using an IBM i server….

The IBM i

The IBM i users are loyal and outspoken group. And it’s no wonder. Occasionally, you discover a product that has you wondering if you’ve stepped into some kind of alternative universe. The very first product that gave me this impression was the ‘63 Corvette Stingray. Close second was the old AS400 from IBM. It was kind of like if you took an M1 Abrams tank and created a server with similar survivability. The stories of these things were legendary.

• One system was on the top floor of a building literally flattened by a tornado. After falling 4 stories, being buried by rubble and rained on, they only needed to dry it out to bring it back on line.
• Another system ran for a whopping 18 years without anyone patching, updating or even backing it up with no issues.
• Yet another was accidently walled up yet remained in service for years until someone tracing down the power and network wiring opened a wall to see what the wiring went to and found a shrouded AS400.

Who’s using the IBM i?

The IBM i software platform evolved out of this legendary AS400 and it is even more amazing. Whereas the AS400 was successful in manufacturing and distribution, the IBM i has moved into construction, banking and finance, health care, hospitality, and retail. Much of Las Vegas runs on the platform. It’s a software platform that scales from a small mom & pop shop up to a mission critical system for a multi-national companies. It’s virtually immune to the vast majority of malware, ransomware and Trojans. The IBM i is far more robust and vastly more resistant to outside or inside attack. It runs both on premise on IBM Power, ranging from IBM’s smallest to largest servers, and in the cloud, which, surprisingly isn’t how the small customers we’ve dealt with are running it; those firms are buying IBM Power9 servers, which also tend to be more robust and less vulnerable than their Intel based alternatives.

Leaving the platform?

The IBM i is the closest thing to a software platform superhero that I’ve yet seen and likely the safest and most powerful server platform available. Yet, as new generations enter the IT world, many have diverse backgrounds that lack specific knowledge of the ‘i’. Likely the best server platform they’ve never heard of. As the pool of RPG developers dwindles, many feel the pressure to leave this secure environment for Cloud based solutions.

Is the Cloud in your future?

In response, IBM has recently introduced new end-to-end solutions that better connect the IBM i to the cloud. One of the key growth areas for the platform is when it’s used by software providers to provide Software as a Service, or Cloud-based solution. Additionally IBM and its many partners are finding new ways to provide value to their clients by providing cloud services, whether it’s backup in a cloud or fully hosting customers. IBM is dedicated to making the combination of IBM i and Power Systems as good in that cloud environment as they have always been if you physically have the box on site.

The 'i' stands for integrated

As the platform continues to evolve, becoming increasingly robust, embracing modern technologies, and giving many of the world’s top organizations a competitive edge, so do IBM partners, like inFORM Decisions. They complete the platform by providing integrated software designed to function as a packaged whole. inFORM Decisions has software to digitize, manage and distribute spool and database files. From complex spool file bursting and distribution requirements, electronic document automation to workflow, we have the products that you might need, as well as the IBM i, iSeries, AS400, Power Systems experts to help with the installation and development.

Unleash your systems power

inFORM Decisions has been a Document Automation provider specializing in state of the art Document Automation solutions for the IBM i – AS/400 arena since 1994. We believe that the IBM I / Power Systems will be relevant for a long time offering the stability and security that you’ve come to expect from IBM. inFORM Decisions experts can show you how to unleash your systems power and recoup countless hours of productivity! inFORM Decisions is committed to the IBM i platform forever!

Additional reading:
Improve your AP Process
iPDF from inFORM Decisions is now even more powerful

Helpful Videos:
Videos & Webinars

Call (800) 858-5544 / (949) 709-5838 or visit us at www.informdecisions.com for more information about our acclaimed iDocs suite of IBM i products.

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Streamline Your AP Process

Written by Ken Kramer. Posted in Blog

Improve your AP Process

Nearly every business deals with Accounts Payable

Oftentimes, the processes in the AP department are heavily paper-intensive and time-consuming. In fact, for most businesses with manual processes, it takes roughly 16 days just to process one invoice. This ends up costing the organization in the form of labor, late fees, and printing and paper costs. An automated Accounts Payable solution can help an organization reduce those costs, keep more of their hard-earned profits and keep employees happy and productive.

Pain points our solution addresses

If anyone in your organization is saying any of the following, then you can benefit from our document capture solution:
• Manual AP processes are slowing down turnaround times and my AP department is
falling behind.
• Our invoices are rarely paid on time and we are almost never able to take advantage of prompt pay discounts.
• We need to be able to increase our processing but we can’t afford to hire more staff.
• Our manual processes are costing us too much in labor and human error.
• Our AP staff is frustrated with the process and they feel like they can’t ever catch up.

Quick stats about manual AP processing

• Average cost to manually process an invoice: $22.75
• Average time it takes to manually process an invoice: 16.3 days
• Percentage of companies with manual processes that can take advantage of prompt pay discounts: 16%
• Cost in labor to find a misfiled document: $120
• Cost to reproduce a lost document: $220

Quick stats about automated AP processing

• Average cost to process an invoice with automated process: $3.40
• Average time it takes to process an invoice with AP automation: 6.1 days
• Percentage of companies with automated processes that can take advantage of prompt pay discounts: 47%
• Automated AP processing greatly reduces or eliminates the issue of lost documents and errors

What can an organization gain from improving its accounts payable department?

• Increase the overall productivity of Accounts Payable staff by eliminating or greatly reducing manual data entry
• Reduce the amount of hours staff spends processing invoices
• Eliminate or greatly reduce the issue of lost invoices
• Trade in late payment penalties for early payment discounts
Example: If your company processes $10 Million worth of invoices and gets 2% net 10 from 80% of your vendors, and you are able to take advantage of the discount on all of them, you’d save $160,000 on your invoices.*
• Reduce the cost of processing an invoice and save significant money in the long-run
Example: The average cost to process an invoice manually is $22.75. If you manually process 1,000 invoices per month, or 12,000 per year, assuming your processing is the same as the average, invoice processing costs your business $273,000 annually. If you switch to automated invoice processing, the average cost to process the invoice is about $3.40, so the cost of processing the same amount of invoices for one year is $40,800. That’s an annual savings of $232,200.*
• Improve the audit process

Who should be thinking about document capture as a solution?

• YOU
• Also…CEO, CFO, CTO
• Accounts payable department manager
• Key accounts payable employees and supervisors

Important features of the capture solution

• OCR to convert scanned documents into meaningful text
• Classification to automatically separate invoices based on vendor >> Accelerated Classification Engine to automatically classify documents and extract data during the workflow without the need for configuration in advance
• Auto Zone Creation to allow the capture solution to auto-place smart zones
• Table Extraction to quickly extract line-item data
• Migration to iView on the IBM I and 60 other ECM systems and the ability to send data to just about any ERP

* These numbers are examples based on averages. Actual cost savings will vary.

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IRS Tax forms

Written by Ken Kramer. Posted in Blog

It’s tax time. Don’t Miss the IRS Deadline. We have forms.

2020 IRS tax form implications

For year-end 2020, a major manufacturer of tax forms has run into some sort of manufacturing snafu which has caused mass delays of tax form orders affecting individuals and several large retailers.
We have been told that many retailers are out of year end IRS tax forms and can’t get restock orders at their locations.

If you’re experiencing delays in getting your tax forms order, contact, Erin at inFORM Decisions today

To see the 2020 IRS form 1099-MISC major changes click here.

Where can you obtain the necessary tax filing forms?

inFORM Decisions offers tax forms in just about every paper median for all your tax season preparation needs. W2, 1099, ACA, and many more are available as blank laser forms, pressure seal forms, continues forms, and more. Please call (800) 858-5544 or (949) 709-5838 Ext.123 to order your 2020 tax form paper and envelopes or email Erin at erin@informdecisions.com.

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IRS 1099-MISC vs. 1099-NEC

Written by Ken Kramer. Posted in Blog

What happened to Box 7 on the IRS 1099-MISC form?

2020 IRS tax form implications

In a move that will impact business owners and tax professionals across the nation, the IRS has released the 2020 Form 1099-NEC. The new form replaces Form 1099-MISC for reporting nonemployee compensation (in Box 7), shifting the role of the 1099-MISC for reporting all other types of compensation. As a result of the new 1099-NEC and redesigned 1099-MISC, the overall process for reporting nonemployee compensation is changing for the 2020 tax year.

The 2020 IRS form 1099-MISC has major changes

Nonemployee compensation (Box 7) has been removed from the Miscellaneous Form. If you typically file any 1099-MISC forms with Box 7 completed, you will need to file Form 1099-NEC for tax year 2020. You must also file Form 1099-MISC for anyone from whom you withheld federal income tax under the backup withholding rules, regardless of the amount for tax year ending 2020. Boxes 7 – 17 have been repurposed. Box 18 has been eliminated.

Introducing the new form required for tax year 2020, Form 1099-NEC

Data previously reported on Box 7 (Nonemployee compensation) of the 1099-MISC, the new 1099-NEC will capture any payments to nonemployee service providers, such as independent contractors, freelancers, vendors, consultants and other self-employed individuals (commonly referred to as 1099 workers) for tax year 2020. This will be required to be reported in Box 1 of Form 1099-NEC for tax year 2020.

Why is the 1099-NEC Replacing Form 1099-MISC (Box 7)?

The Protecting Americans from Tax Hikes Act of 2015 (the PATH Act) — enacted on December 18, 2015 – created a unique situation for tax filers. In addition to moving the due date for Form 1099-MISC Forms containing data in Box 7; (nonemployee compensation), from February 28 to January 31, the legislation eliminated the automatic 30-day filing extension. If an employer filed a batch of multiple 1099-MISC forms (potentially with data in Box 7 (nonemployee compensation) and without) after the January 31st deadline, the IRS could mistakenly treat them all as late returns and apply fines.

Beyond the time-management and administrative issues for the IRS to properly process the forms, some misaligned deadlines on the taxpayer side opened the door to fraud. To resolve the various issues, the IRS revived Form 1099-NEC (originally established in 1982), effectively separating Box 7 (nonemployee compensation) from the 1099-MISC, as well as staggering the filing due dates.

What is your next move?

Contact your software provider to ensure compatibility and updates to support the new 1099-NEC form. Form 1099-NEC is not a replacement for Form 1099-MISC. Form 1099-NEC is only replacing the use of Form 1099-MISC for reporting independent contractor payments. According to the IRS, the people for whom an organization should use the new 1099-NEC are those with at least $600 in services performed by someone who is not an employee (including parts and materials) (Box 1). The IRS estimates that 70% of all 1099_MISC filings will require Form 1099-NEC. For tax year 2020, filing 1099-MISC to the IRS and various states is still mandatory for reporting other types of income. State reporting requirements vary by state. Approximately 20 states have indicated support for 1099-NEC. It is expected more states will require it. This translates to an estimated 70 million 1099-NEC filings for tax year 2020. To obtain instructions for Forms 1099-MISC and 1099-NEC (2020), consult the IRS website.

Where can you obtain the necessary tax filing forms?

inFORM Decisions offers tax forms in just about every paper median for all your tax season preparation needs. W2, 1099, ACA, and many more are available as blank laser forms, pressure seal forms, continues forms, and more. Please call (800) 858-5544 or (949) 709-5838 Ext.123 to order your 2020 tax form paper and envelopes or email Erin at erin@informdecisions.com.

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Positive Pay Can Prevent Check Fraud

Written by Ken Kramer. Posted in Blog

Positive pay is a simple but effective way to prevent check fraud

Check fraud is on the rise

In spite of the fact that overall paper check usage continues to decline each year, check fraud is on the rise due to today’s advanced technology that makes it easier than ever to create realistic counterfeit checks. Simple low-tech paper checks continue to lead as the payment type most susceptible to fraudulent attacks. Since they’re passed hand-to-hand on their way to payment, checks remain the most-often targeted payment method by those committing fraud attacks.

Check fraud also accounts for the largest dollar amount of financial loss due to fraud. Paper checks can easily be stolen, duplicated, altered, or cashed illegally. And the payer can be liable for the fraudulent checks as the liability for a bad check can quickly shift to the check issuer and away from the bank that accepts an altered deposit.

There are several situations where organizations can be prevented from seeking restitution from a bank that pays a fraudulent check, especially if the organization did not exercise “ordinary care” in issuing checks. This means an organization can’t count on a bank making them whole after accepting a fraudulent check. All of which calls for a better solution to catching fraudulent checks as they occur. One of the better ways to protect your organization from altered checks is to implement Positive Pay protection, which is available in several IBM i check printing software packages, including iChecks from inFORM Decisions.

Understanding Positive Pay

Positive pay is an automated cash-management service employed to deter check fraud. Most Commercial Banks use positive pay to match the checks a company issues with those it presents for payment. Any check considered suspect is sent back to the issuer for examination. The system acts as a form of insurance for a company against fraud, losses, and other liabilities. There is generally a charge incurred for using it, although some banks now offer the service for free. It protects against altered, forged, and counterfeit checks by verifying the accuracy of a check’s account number, date, and dollar amount when the check is presented for payment.

How it Works

Positive pay is a simple but effective way to prevent check fraud. It stops criminals from cashing fraudulent checks using stolen account numbers. It also catches bad checks where the check amount has been altered or the check has an invalid date.

• Bank customers send a check register file containing check numbers, dates, and amounts to their bank for checks the customer has written.
• When a check is presented for payment, the bank compares the presented check against the customer’s previously transmitted check information for that account.
• The service matches the check number, dollar amount, and account number of each check against a list provided by the company. In some cases the payee may also be included on the list.
• Where there’s a discrepancy between a presented check and check file information, the check will not be cleared. The bank notifies their customer through an exceptions report and withholds payment until the customer tells the bank to accept or reject the check.

Payee Positive Pay

Payee Positive Pay offers even a higher level of fraud protection than traditional Positive Pay. Traditional Positive Pay only includes comparing check numbers, dates, and amounts. It does not include payee verification, to insure the payee name has not been altered. Many banks provide Payee Positive Pay as an added feature to Positive Pay, and that may include additional fees. If you choose payee verification, make sure that your software and your bank both support it. iChecks from inFORM Decisions supports Payee Positive Pay

Transmission File

There are several different transmission methods and formats in which check data can be submitted to a bank. Not all banks use the same transmission format and transfer protocol. And some banks use different formats in different divisions. If your organization is planning Positive Pay, you may have to account for several different check file formats. If you’re implementing Positive Pay on an IBM i contact inFORM Decisions for a check writing package that enables you to produce the correct format for your bank. The file can then be submitted using a variety of transmission protocols such as FTP and sFTP.

Benefits

Although using Positive Pay requires a few extra steps, the advantages for your business are well worth the effort. Consider the many benefits, which include: Lower costs. By significantly reducing the potential for check fraud, Positive Pay can save you time, effort and real dollars.

When checks are printed with iChecks/Positive Pay Software, the process becomes simple. A file containing information such as check number, date, amount, and payee is automatically sent to your bank. When a check is presented at the bank for payment, the bank reviews the positive pay file to see if the check is valid. Funds are released only when the payment details match the exact items on the check file. Check fraud prevention is easy with inFORM Decisions.

Call (800) 858-5544 / (949) 709-5838 or visit us at www.informdecisions.com for more information about Positive Pay or our acclaimed iDocs suite of IBM i products.

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