Organizations are required to report certain “reportable” payments made in the course of their trade or business to the IRS. This process is known as “Information reporting”. There are over 30 information tax returns that are required to be submitted to the IRS.
This process allows the IRS to cross-check the income reported from these organization with the income reported on an individual and entity’s tax return. This in turn helps increase the likelihood that all income received is reported and, therefore, that all tax is paid. Some of the more common information tax returns are:
Form W-2 Wage and Tax Statement
Form 1099 (16) non-wage
- Form 1099-MISC, Miscellaneous payments
- Form 1099-INT, Interest income
- Form 1099-DIV, Dividends & distributions
- Form 1099-K, Merchant card & third-party network payments
- Form 1099-B, Broker & barter transactions
- Form 1099-G, Government payments
Form 1042-S – Payments to foreign persons
Form 1098 (5) – Mortgage interest, mortgage assistance payments, auto/boat/plane donation, student loan interest paid, tuition paid.
From 5498 (3) – IRA account info, HSAs, Coverdell Education Savings Accounts.