1099 Strategies: Is QuickBooks enough?

Rich Kane CPA will join us to recap the 1099 filing capabilities in QuickBooks and Avalara will be joining us to share how their solution can augment and streamline the filing process.

QB Power Hour is a free, biweekly webinar series for accountants, ProAdvisors, CPAs, bookkeepers and QuickBooks consultants presented by Dan DeLong and Matthew Fulton who are very passionate about the industry, QuickBooks and apps that integrate with QuickBooks.

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Watch or listen to all of the QB Power Hours at https://www.qbpowerhour.com/blog

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00:00 Introduction and Housekeeping
01:03 Earning Continuing Professional Education Credit
02:09 Welcome and Today's Topic Overview
02:53 Meet the Hosts and Guests
05:53 Avalara's Role in 1099 Compliance
07:20 QuickBooks Desktop Pricing Changes
13:23 Understanding 1099 Forms and Compliance
30:43 Tax Return Tips and 1099 Reporting
31:07 Year-End Check Writing and Mismatches
32:35 Discussion on 1099-K and Marketplaces
34:17 New W-9 Form and IRS Changes
39:33 1099 Extensions and Penalties
41:02 Best Practices for 1099 Preparation
45:56 QuickBooks and Avalara Integration
50:48 Avalara 1099 Solution Overview
57:53 Final Thoughts and Next Steps

Transcript

Audio Only - All Participants: 0:33

welcome everybody to another QB Power Hour. Today we're gonna be talking about 10 99 strategies for accountants. Really is QuickBooks enough, and we'll be joining. We'll be joined by some folks, our friends over at Avalara, where they have. Some things to augment accountant strategies with within the 10 99 space. So we'll be talking to them shortly after we discuss the 10 99 situations that are in q QuickBooks directly, as always. Welcome. My name is Dan DeLong, owner at Danwidth and School of Bookkeeping. Worked at Intuit for nearly 18 years. Co-hosting today, also at Workshop Wednesdays over@schoolbookkeeping.com and the unofficial QuickBooks Accountant Podcast. Sharrin, thank you for coming in hibernation just for this webinar. Nobody would even know I was in. Hibernation. I just think about that because honestly, the last time they saw me, we were all on this together. But yeah, my sabbatical last one more week. Super excited about it. My firm just sold this last week and now I get a comeback into the new year, just helping accounting firm owners, and I'm really excited about that. That's awesome. And then read all that good stuff. Yeah. And other stuff as well. And joining us today Brenda, the Cho Rich Kane, you wanna give a little introduction for, the folks that maybe missed you last year? Yes. Howdy do everybody. I start out by the famous holiday song. It's the most wonderful time of the year, said no accountant, no bookkeeper, no controller. When you have to get into this 10 99 stuff, it's just jolly. So we're gonna have a little fun today, rich. I was just gonna say, I'm just coming outta sabbatical and I did not sign up for singing, so I'm so glad that you didn't continue that song. I was just gonna be like out sharing out, but thank you for that. My voice won't carry that. So Rich is gonna be chatting about the, 10 99 changes for this tax year, as well as, some best practices that he has for inside of, QuickBooks. But joining us from Avalara, our couple, friends, Giselle and Gordon you wanna give a little introduction before we get into the, meat and potatoes here? Absolutely. And Rich, you nailed that. That was beautiful. That was good. Good. The voice, of an angel. You have hello everybody and welcome. I'm so excited to be here because Gordon nine, we talk about 10 90 nines. All year long, but now is a time when we are the most popular kids at the dance. Everyone wants to talk to us about 10 90 nines. We are excited to talk to you all about 10 90 nines and potentially how additional automation could work with your QuickBooks instances as well. Hello everyone and welcome. And if only we knew how to dance as well as being that popular at the dance was. Amen. That'd be great. There's far too much encouragement here for singing and dancing at night in the morning for us West Coasters. I know you guys gotta be happy over there. I just gotta pipe back in and go hey, bring us back to Earth. We appreciate you joining us for this. The most wonderful time of the year for 10 99 ERs. But I think the first question that people would have is wait a minute. I thought Avalara was sales tax. What are you doing on a 10 99 webinar? Ah, so clever indeed. We are known for our amazing sales tax magic that we do. Sales tax, use tax exemptions calculation, all the fun and sexy things to do with sales tax. But yes, we've been in the 10 99 space for quite some time now, and it, we have over 195,000 customers that have used it. Probably a few on this call that have used our tool as well. Yeah, the quite prominent in this space. We're just a little, quieter over here compared to our big brother in sales tax, right? So it's not just for sales tax. Avalara is, it's as, your slogan says. Tax compliance done right? Not necessarily just the sales tax part of that. Indeed. All right. And of course my other machine just restarted the penalties of doing a live webinar. My mine's still on. Okay. So that should be for those that are watching the stream. I understand. Maybe there's some glitching going on there. We are, I need a new computer. That's the thing. But, a little bit about the, QB power hour. If you're just joining us for the first time, it's every other Tuesday. Noon Eastern and we are making some changes this year in, 2026. We will still have a channel on earmark, but we're not the ongoing from this point on. We are not doing CPE credit with with them. You can still get CPE credit for prior QV power hours for up to a year. So you can always check out the, channel there. But new new webinars are not gonna be eligible for CPE credit in the, coming year. But you can always go to qb power hour.com/resources for PDFs of the, slides, the handouts, pass recordings other resources available there as well. So today we're gonna be talking so our Intuit news is unpacking or at least discussing the desktop pricing changes that were announced last month and when they're, taking place. And then we'll just be chatting with with Rich about 10 99 strategies the fundamentals, what's changed this year the 10 90 nines that QuickBooks supports, and some best practices inside of QuickBooks. And then we will turn it over to Giselle and Gordon to talk about what if you've reached a glass ceiling of what QuickBooks will allow you to do with 10 90 nines and you need more, you'll have a 10 90 nines or Avalara 10 90 nines demo about that platform. So our first question before we get into the Intuit news is, did you launch that? Yes, you did. Okay, perfect. Thank you. Sharrin, what version of QuickBooks do you support your clients with? And so let's talk about the, desktop pricing changes. This seems to be, a common topic that we've been chatting about because we, it seems like we just talked about some desktop pricing increases. This is going to in impact pro and premier. So yes, you can still have an active subscription. You can't purchase new subscriptions of Pro and desktop, pro and Premier. But for those that are on the subscription, that price will increase accountant and ProAdvisors. We'll, see an increase in their desktop add-ons and QuickBooks Desktop Enterprise Silver. So there's. Several precious metals when it comes to desktop, QuickBooks Enterprise but only silver. This, time. All of the other ones included a pricing increase with the bundled enhanced payroll service. So they are spared this year. And then desktop payroll is getting an increase as well as the caps are being increased for ACHs on desktop payments. And all of this is gonna take place, after February 1st. So right after, the most wonderful time of the year, right rich, you get sock with it with an increase. The most important thing to remember about these pricing increases for the annual subscription. So your pro premier, your accountant desktop enterprise, those type and desktop payroll, those are annual subscriptions. So you won't see the pricing increase. The pricing increase will be effective January I'm sorry, February 1st of this year, but you won't actually see the increase until your renewal, right? So if you started your subscription in June of 2025, that increase won't be until your actual renewal date of those annual subscriptions. Murph over at Insightful Accountant wrote a nice little blog s. Highlighting all of this. So there's a link there in in the handouts, which if you're watching the stream, I would love to put a QR code up, but since my computer decided to restart I can't. So those of you that are watching on the stream, if only you had a co-host that could help with things like that. Yeah. I don't know. I'm just saying sounds like we have something to talk about, Dan. I think we need to, I, we need to start having more conversations. Yeah. I was like, no, cp, we gotta talk. Yeah. One of the one of the things that I wanted to do is actually use that studio so that it doesn't restart like that because, and, then we'll use the Zoom link the zoom webinar in a different fashion. We'll have a once, once you're fully out of your

10:36

sabbatical. Sharrin, we'll reconvene

Audio Only - All Participants: 10:41

and sounds good. And, maybe separate our duties there. But yeah, as far as the dollar amounts and those types of things, I would ref suggest going to MERS blog there. It's some is substantial, some is insignificant. It really just depends on what you're using. Biggest increase that I noticed was the accountant or ProAdvisor. I don't know if that's on purpose or not. Sharrin, you might have some thoughts about, I have, I made you a promise at the very beginning. I didn't wanna come into this year full porns blasted against into it. I have thoughts. I mean these are I have thoughts. I'm gonna save it for two weeks from now. Okay. I don't wanna, I don't wanna make Avalara have to be a part of Sharrin's intuit rants. They need they like their re their relationship with QuickBooks, so I'm gonna exactly. All right, so let's let's talk about 10 99 because, enough about desktop pricing increase. So let's talk about that. Yes. I love this, this, image here that you have here, that it, 10 99 shouldn't be this hard. And we were talking in our meetings. How did you get a picture of my house at Thanksgiving? But but 10 90 nines used to be real simple. When, it came to, to, to QuickBooks, right? It was like three things. If the vendor was set up right and you had the accounts mapped and you had the threshold met it would just prepare the 10 90 nines. But what has been going on Rich lately with, with 10 90 nines that make it a little bit more complicated? Oh, you should ask it is, I'd like everybody to understand what a 10 99 and the, purpose of it is. And the purpose of it is it's an information return that you send to give to the IRS.'cause the IRS has no clue about what they should be expecting on people's returns until they get these 10 90 nines to add to their account. Now Dan has got most famous line that I liked. He said that we are tattling to the IRS. Was that what you used? That's what you said. So last year, that's basically what you're doing. You're, you have, you're filling in the eye. You're legally tattling on, on, your vendors and suppliers. That's correct. Correct. So if they don't know you, they're giving you some rules. And if they don't know until you send in the 10 99, then they put it in the, person's records, their transcripts, and they are expecting to see on a, like a 10 99 non-employee compensation, they're expecting to see that on that person's tax return. And because you've reported it to them, if they don't, if they don't report it, that's when they get a note. The big nastygram from the IRS saying, you didn't report all your income. That's because someone has taken the time somewhere on any 10 99 form to alert the IRS that they should be expecting it for you. So that's, really the premise of an IRS. It's only basically for services and you can see all different types in there. We're only gonna be talking about the first one to five of them. There are many more in there. QuickBooks only does the miscellaneous and the NECs. So anything, if you have any others, common might be an interest form or a dividend form. Hey, our good friends at Avalara, they're here today. They will show you how they can do the stuff that definitely QuickBooks can't. Those are the ones we're really talking about. Now, one thing, the rule is okay. Through 2025 that includes this the ones we're doing there, the 10 99 misc, or the NEC. The rule is$600 or more going to a person or a bus type of business. It's 600 or more. The good thing about Mr. Trump's new big road B, whatever the triple B is, they are increasing that starting in 26, not in 25 to go up to minimum of 2000. Then you can start reporting. So for this coming year in 26 now. And the other thing is you are not generally, you do not withhold anything, but if it's somebody that doesn't want to give you their social security number, their tax ID number, or they want to have withholding you are more than welcome to withhold on the 10 90 nines and you will remit that to the government annually on a Form 9 45. So it's not, it's generally not common to see withholding, but if somebody wants to have withholding on there, you're more than happy to withhold it and remit it to the IRS. And then our infamous, the 10 99 K that deals with credit card processors, they have to report. So the rule is for tax. Year 25, any transactions over$2,500. That's simply the rule. The new rule starting in 2026 is$20,000 or more of business and credit cards or 200 or more transactions. So I'm gonna explain what a 10 99 K is and how it's important for us to understand what that is so we don't duplicate our efforts. We're really only gonna focus on the misc and the NECs. All right. Dan what is the, concern as we talk about like an NEC if, the if you file a 10 99 that includes something that should be reported from somebody else, correct. What could potentially happen in that? Okay. First, the IRS has no clue. It's coming in from two sources. It's gonna put two sources on your transcripts, and it's gonna expect the higher amount. So when we prepare 10 90 nines, thes and the Kers, it's only for tasks that you pay them, checks you've written ACHs that you've written and our good friends that I believe at, ZLI or Zelle, whatever, we're gonna get to that a little bit. So they don't know it's not being done through a processor. So as long as it's not being done through a processor, it's your responsibility to pay to calculate 600 or more and issue the 10 99. What you don't wanna do is if you paid somebody by credit card, you don't want to say, oh, I paid this individual and I gave them my my credit card. The credit card processor is gonna handle it. You don't have to worry about it. But if you're not thinking and say, no, I paid the total amount that I paid them was 18,000. 18,000 went in through the credit card, processor's gonna process it tattle to the IRS. You got 18 on your account, you've done an any c to them. You didn't know that. Credit card processors, they have a 10 99 NEC. Now they've got$36,000. The IRS is expecting of them. So that's the importance of it, is if it's done through a processor on a 10, the processor will issue their own 10 99 K. You don't have to worry about it. Okay? And, it's easy to get con that conflict. So keep that in mind. All right, let's look at our resources. Alright, so we hard to read, just glance at that to something that you should have happen to know. It's never been a, the 600 has never been adjusted for inflation in more than 70 years. Now we're gonna make it to, to 2000 in. It's quite a jump. We a jump. But on that note that I wanted to make sure that you knew that there is a penalty if you don't remit it. So if somebody does not have a social security number, you can't get ahold of them. What are your penalty? There are some penalties, but I will be honest with everybody. I've never seen one in my history and I'm old. I've never seen anybody in my history get nailed for not remitting a 10 99. Generally that may happen is if you're under an audit and then they ask for copies of the 10 90 nines and you didn't remit it. So that also Rich, you think now that we're so automated? Yeah. That now like before, I mean they had no way of knowing and now they've got these checks and balances. Yeah. And when you guys get a second here, I would love to give you a horror story of, a issue I had with the CPA. I'd make it really quick, but you let me know when I can tell you a 10 99 to story. Okay. Go ahead and tell it. Alright, so we were taking months. We had a client. We had a client. They weren't, we weren't doing their taxes they had outside at CPA and he wanted us to, he's Hey, we need to issue all these 10 99. Go. Here we go. We created'em. He goes, don't file them. We're like, excuse me. He goes don't file them. Just get the 10 99 to the people, because they were so late, right? Yes. They were in March the following year. And I was like, there is a likelihood you guys we're telling you as your accountants and your CPH should tell you, you might get a fine. He goes, just don't file'em with the IRS. Just fill out the 10 90 nines, get'em to the contractors and just don't file with the IRSI go, are you. What's your license number? I'm reporting you. This is the dumbest, I hope he's on here watching this and embarrassed, but that was the dumbest thing I ever heard. Create a 10 99. Give it to the individual so they can file it with their tax return, but not tie it back to anything from the employer that issued it. And he thinks that's okay. We got a huge fight and, the client listened to them and then they got tons of fines and they came back to us and fired them. But just so you know, that's terrible advice, right? But I wanna mention that we're gonna be coming up with a slide in a little bit. Your tax return is, asks you two questions physically on the tax return that says, do you, you are, do you have any 10 99? And are you, can you issue them? Just as I'm talking here, this screen here, these are some of the miss all the different types of 10 90 nines. Obviously we're not going through'em, but some people say what are the different 10 90 nines? Oh, I remember that. So Dan, you can scroll through the next four slides. These are just hand resources for you out of the handouts of all of the different 10 90 nines that are there. But let's jump into, right? So how do you do this inside of QuickBooks, right? So just everybody should know that. There are questions on the tax return that you have to answer. So you are saying you are going to remit them even if it's late, get them to the IRS. Okay, so let's talk about how we get 10 90 nines. 10 90 nines are for individuals, they are for LLCs. So if a company's name ends in an LLC you need to, send them a 10 99. If they are incorporated, you can skip theirs except for one caveat. And those are attorneys. So if you issue a 10 99 to an attorney, even if it has ink in the name, as long as it's over$600, it goes. You have, you need to issue it to them. First thing you need to do is get their tax ID number or their social security number. Usually you can ask them for it, but if you wanna be generally formal about it, you can get a W nine form. Now, I understand from my good friends at Avalara who've been great that they're going to be changing. So making some changes to this form in 2026. So in case you have a new, consultant, a new person, a new LLC in 2026, you're gonna wanna make sure you get the 2026 form. Okay. And I have some examples on the left side. If it begins with a nine, it's an I 10. That means an I 10 is an individual tax ID number. They are not US citizens, so you can give them the I 10, but you can issue the w the 10 99 form with the I 10 in it. But it's probably gonna go nowhere because they're not a US citizen. So usually I tens are for individuals that are aliens. They're not actually citizens, and they're not filing a US tax return. Okay, so once you get their tax ID number, we have the NEC stands for non-employee compensation. Now, when you pay any of your consultants, vendors, et cetera, you want to only issue the 10 99 for the services. If they also include supplies in there that they've purchased and you're reimbursing for you, the supplies are not included. So that is why in QuickBooks you have to map your accounts that are basically only the ones that'll appear on the 10 90 nines and will skip the ones that are not. So it would skip supplies in that particular example. Some common ones are outside services, outside contractors, repairs and maintenance. Check your improvements of your fixed assets because you might have hired an individual to do painting or some sort of remodeling that are individuals that should be issued for it. Attorneys, legal fees. Accountant fees. But remember, unless they're incorporated, accountants do not get one. Only attorneys, now attorneys, they're a funky bunch. Okay? If you're issuing, I'm surprised they haven't done accountants yet on that one. But for attorneys, any type of normal services that they do, they review a contract, they create, some sort of legal issue you have. That's the normal course of performing legal services. It appears on a 10 99 NEC if you have to write an attorney.'cause you've been, you've had a. A situation you've been found guilty and you have to issue some sort of settlement to the attorney. Settlements are not on the 10 99 NEC. They are on the 10 99 misers. So if you've been told that you've been naughty and you have a settlement and you have to write the check to the attorney,'cause the attorney does all the bifurcating on that, that would go on a 10 99 misc. Okay? One for misc. We also have rents and we also have royalties on a misc. Now what's the really the difference between the two? Why can't you keep it all on one? If you know anything about taxes, the NEC, the non-employee compensation, you have to pay taxes on that one. Obviously you have to say pay taxes on your 10 99 misers as well, but in addition, on the 10 99 NEC, you have to pay an additional self-employment tax of 15.2%. Anything on a 10 99 NEC is subject to the self-employment tax where a 10 99 misc is not subject to the employer, the self-employment tax. So let's just go to the next slide, Dan. Alright. Okay. And that is, so be careful when you, which one you're doing. A lot of times people will give a prize out that goes on the mis'cause they're not subject to the self-employment tax. One other thing that I wanna point out here is. To go on the NEC, remember it's check cash, a CH, Zelle or a wire transfer. There's a little bit something you should understand if you PayPal or if you Venmo somebody to somebody's personal account, not to a business. Now remember, I remember I use Venmo. It says, is this a business or is this personal? Then they warn you if it's personal because this could be fraud. But other than that, but if you Venmo or you PayPal to an individual that will not be issued, that will not go through a processor and will not be issued the 10 99 K. So you do have to include in your 10 99 NECs people that were issued to Venmo or PayPal that went to a personal account, not a business account.'cause that'll be taken care of there. All right, let's shoot to the next slide. Here's the kers. We've got rents, royalties. Now rents, yes. If you pay an individual rent and it's over$600, you need to issue them a 10 99. The landlords get it, people, blah, blah, blah. I've never issued one to my landlord or the landlords. Oh, they don't want to give you their tax ID numbers. According to the IRS, you as the one that writes, gives out the money, it's your responsibility to get their tax ID number before you write'em, even the first check, or send them the first payment. So the responsibility falls on you, not them to give it to you. Okay? Next. Okay. Obviously he talks about when it's not needed, if it's ink, except for attorneys. When it is, Venmo, PayPal issued to a company. And it goes to a, it's done on your credit card. Okay, let's go on to the next one. Okay. That's the famous infamous 10 99 K. One little tidbit on this. Make sure you add up unless you have tips in there. You add up the amounts and I think it's one a gross of receipts. And when you file your tax return, make sure your receipts, you de declaring income that is equal to the greater of all your 10 90 nines. Or you're gonna get ding with a letter that you didn't report enough. So it's a good check. Now, a little tidbit here that you may not realize if your vendor send, goes and writes you a check on the 31st of December, okay? It's the end of the year, okay? And sends it out, sends the check out, but your cash basis and you don't receive that till the end of first week in January. Wow. Guess what? They wrote it in December and like quick, like on QuickBooks, you write a December check, it's gonna appear on the 20 25, 10 99. However, when your client gets it, their cash basis, they're gonna put it in their bank in January, and obviously there could be a mismatch. So everyone, I said if you write any checks out the last week of the year, that is 10 99, it's cut. It should be nice courtesy to let your person know that it's going to be on their 10 99, they should include it in their 2025 revenue, or they're unfortunately gonna get a mismatch notice and a nasty gram onto the next slide. I would like Jordan or Gordon. Gordon or Giselle. I combined you into, one human. Most people do. It's fine. Since, I, I would like to invite you to dance. Any thoughts on that? On what Rich has covered so far? We definitely wanna talk a bit about the 10 99 K because we do see a bit more nuance with the customers that we work with beyond just a credit card merchant processor. I'd like to invite Gordon to share a bit about that since he's been recently working with some big customers around this. Yeah. A lot of this is also a great opportunity with ten nine K for your marketplaces, your sellers, your ambassadors. This is, gonna be, because it's a huge industry right now, right? We all know our eBays and Etsy and things like that, but and kudos to you if you're their accountant. But, there's, a whole world. Every week new marketplaces, whether it's online gaming or it's, it is physical goods or something that is popping up and, those processing those payments through those from a buyer to a seller within that marketplace environment is also gonna be. It's that authorized third party processor. And so that's gonna also result in that, that k which is obviously in those, for those startups. What a, what great news with the, one big beautiful Bill Act reverting back to the, pre 23 legislation of$20,000 and 200 transactions.'cause so many of those smaller ones when it was gonna be$600 with no transactions, were definitely gonna be pinged with tons of having to issue a ton of 10 90 nines. That now I think push off more to year two, year three of a business, a startup in that marketplace environment as well. That we see making life a little bit easier. Yep. True. There was one other note we just wanna touch on with the new W nine. It is in draft form right now. So there we're watching it very closely. The revision date does say January, 2026. Now, is that before or on the January 31st deadline? For, we don't know. A couple things to note on there. For sole proprietor, why it's important. Sole proprietors are no longer allowed to provide an EIN it must be an SSN. So how are you put, what me mechanisms are you putting into place to ensure that you are identifying whether it's EIN or SSN and how are you gonna communicate that to your clients or your the end vendors? There's another section in the certifications. There's an update there that pertains to the 10 99 DA digital assets, cryptocurrencies and NFTs. I don't know how relevant that is to this audience, but that is one big change that we are seeing there. And then the last one is around the fire to Iris transition. Gordon what was the, third one that we had on our list? Yeah. Yeah. That's the, one that concerns me. If I'm, being honest, that's the one that we all might get. I think the IRS is, potentially gonna get knocked out on it too. And I think it, it also relates to that W nine coming revision. Because Iris is one, if you're a fire filer. Direct to, fire filer. Hopefully you're really paying attention today via QuickBooks or Avalara for filing because Iris is not easier to work with no, than fire. That is a definite but, two. Iris is changing the way that naming conventions work as it accepts forms. It's now a first and last name, A two box versus a one box fire has always been one box for name. Iris is gonna be two for those sole props, and that causes some trouble. When it comes back to what do our account systems, our ERPs how do our clients, how does the data come to us? Is it in one box or does it separate into two? And if it doesn't separate into two. What is the IRS gonna allow from the standpoint of allowing us as not the vendor or contractor or whatever they are to decide what goes in the first box and what goes in the second box, especially when it's a multi-part name or a hyphenated last name. The IRS is pretty clear. They don't want us making decisions for somebody when we fill out a W nine or Right. Issuing the 10 99 data. Whatever we get is what we're supposed to issue even though we're the ones who get penalized for it. Yes. At the end of the day if systems keep pushing out data in a one box and we have to submit it in two box. What is that gonna look like? How quickly will all of the different softwares adapt? And again, what happens when we have a bunch of data where it is one box and how are we supposed to legally and without penalty, decide how to differentiate that data and, what is that gonna do? It's an interesting premise. Hopefully the new W nine will make things easier. We shall be that, is being designed to, to get rid of the con the, problem that is checking the box in section three for whether you're those disregarded entities, LLCs, tax, sole props, constantly trying to mark LLC and then not writing SC or P on the line.'cause they're like, I don't know what I am. It's supposed to alleviate the single member of the disregarded entity problem. But again historically, the IRS has never ever put out a new W nine and then required us to use it on past W nine. Is this gonna be the first time where they say you've gotta go back and collect new w nines in this format for all of your vendors? We're in a world of unknown, I think. I think this filing season that's going on right now, or is starting to open today on January 6th, is gonna be an interesting one with the DA, with the changes to the, thresholds and things that are, coming. But I also think next year with the move to Iris, the new W nine, who, you know, 10 98 LVI, there's so many different things coming that it could be, a firestorm as a nice way to say it. Yeah. I've, never seen it be this, far into the filing season where things are being changed like this usually they're, very slow to provide to the providers the drafts and the forms and those types of things. Yeah. I've never seen it. Creep into the following year like this. So it's and then it, pushes back the response from the states as well. So do the res, do the states follow the IRS Fed? Do they do their own thing? Do they stay where they're at even though it could be different. So it doesn't give the, states much time to, to respond in or opposite. Yeah, just crunches all the timelines. Nice. And sometimes you'll need an extension so that, yeah. Great. Segues so nicely rich into Yep. A 10 99 extension. So the N Cs are due out by January 31st, unless it falls on a Saturday or a Sunday, then it's due the following Monday, and the Kers are due February the 28th. So if now, no one's ever, I've never seen anyone get in trouble for sending it late. But if you feel you need to, there is an extension form that you can fill out. And I believe this one has to be mailed in. I believe this form is not available to transmit electronically. So there is an extension form if you need it. Okay. Couple of penalties. Down at the bottom, it says there, it's let's see. In the middle there, it says it's$60 per, I think 10 99. And penalties can range from 60 to six 80 for missing or incorrect tin in identification numbers. A lot of times you'll get a lot of foreigners or people who aren't illegal in the comp in the country. They will give you a fictitious and you will get a notice that you've sent to them a an incorrect tin number. And once again, they've, I've never heard anybody gimme any penalties of, we didn't find the right one. I usually go back and double check. All right, we've talked about some of the re relevant changes. Let's go on to the next slide. Alright. Launch polling question two. Second poll question. Do you use QuickBooks to prepare the 10 90 nines? And while you're answering that, let's talk about some 10 99 best practices. And the main thing that we were talking about and the main confusion I think for, a lot of folks is this 10 99 K versus 10 99 miscellaneous or, NEC and how those things get excluded right out of QuickBooks. And, in quick, go ahead. In the bottom section, if you, in your check register in QuickBooks, whether it be desktop or online, you have these words instead of a check number that you see here. This has been preprogrammed into the system that if it sees these, it will exclude them from putting it on a 10 99 NEC. So if you have something that's trouble, you say gee, I don't want this one to appear. Just make sure you use any one of these codes and then you won't have an issue with it. Yeah, there's a typo there. It's not mb, it's mc. Oh. For, MasterCard. We're not talking about MB Rami. She's not excluded, from payments. That was good. Sorry. Mb that was good. Okay. Now I wanna, hi, I just wanna mention that you're supposed to file these for anybody that's more than$600. One way I get around that, if it's a husband and wife team and it's I can split the two of them up. I've, and I say that they both were under 600. I have a little way of doing that. But a couple things, one thing I wanted to share with you, everybody and Sharrin, you'll appreciate this, is you don't have to issue something under$600, but you're not precluded from doing it. Or tattling is what you say, and I've got two instances here. Let's say for example, you hired a painter for$500. He came in, he did the most horrid job. You told him he was terrible, but he demanded money. You gave him the$500. You're pissed. He did a crappy job. So you have, you can certainly issue him a 10 99 for the$500. You've now tattled on him and he now must pay the tax on that. Another one I sometimes say it should, you can do it. That is why us in the perfection or in the profession called a jerk move, just so you know. Yes, that is true. The same also don't tattle IRS. There's so many better petty ways to go after people that I know. One more of my favorites is, especially in small businesses, happens you've given an employee a loan or in advance, let's say it's four 50 and they quit and you totally forgot to collect the four 50 or they didn't have enough wages and it's sitting on your books as an employee advance. When you're gonna write that off, write'em for that money. Send'em a 10 99. Now they're ding for paying the tax on the money that they should have paid you. So those are the two that I have that you can issue for under$600. Okay. Now Rich, you have a Yep. You have a good report here that, you use to, to reconcile what QuickBooks shows and, what, so what I've done is, by the way, there's a typo in there. Oh. And thSharrinron, can you end the poll on that one? Okay. What I've done is basically I've gone in, is there any other poll I'm supposed to run? Did I miss a poll? I miss, Nope, I did two. Do you. Okay. It's only two perfect to prepare. 10 99. It's my, okay. Now what I've done is, it's really easy for me to do is I've gone in, ran a trial balance, drilled down on my cash accounts, and I've made a report, or I only take checks, bill payments and credit bill payments and expenses.'cause if it's got any of those other ones that are in there or credit card, we're not gonna need it. And then I basically print this out and I eyeball the vendors. Is there one, is it, say Inc. Nope. Don't need it unless it says attorney and I kind of eyeball. Oh, this one's an individual. This one, is a legal so I, it basically gives me a quick eyeball as to who should be on the list for 10 90 nines for that year. Then I'll go into the software and I'll see who's already on there, and then I can find out who I'm missing that they need to get it from. Now, we all don't like the digging. Nobody likes the digging of that. So that's report that I've done kind of makes it a little easy for me to quickly go through it and eyeball who needs to have one. Yeah. Okay. All right. So some, some good workflows is get that Nu W nine before you issue your second, your first payment. Yep. De definitely.'cause then you're you've got that part taken care of. Now let's talk a little bit about doing things inside of QuickBooks. And then we want to toss things over to to Avalara to give us a, an insight into their platform. We did get a little late start, so we will be a little bit. Over the we, a, the top of the hour. We appreciate you hanging out and chatting with us in, Avalara, but QuickBooks has a newer automated 10 90 nines. Big difference is that you're paying for each form. But on their roadmap and the way that they're the, these automated 10 99 forms being able to evaluate who's all of these things that that we're, talking about that make things a little bit more complicated it will the design or the, purpose is to isolate those anomalies. Hey these people got paid in, in different ways. The big difference there is that you would be paying per form, for each, each client, and each within each company. Okay? One thing I wanna mention is you're required if you have 10 or more combined 10 90 nines, you must issue that electronically. You cannot do paper if there's 10 or more. So this could be perfect as, this call is called the manual processing of 10 90 nines and QBO this is the e-filing service that's included inside of most other services, right? So for QuickBooks Online payroll contractor payments, the QB bill pay, premium and higher, the 10 90 nines the processing of 10 90 nines and filing of 10 90 nines are included. And then when it refers to the combined state and federal, it's only if those states. Opt into the combined filing options, and there's li links there for the the manual process as well as the the automated process in the slides. Now, we're not gonna cover how to do all these things because my friend Alicia Katz Pollock is actually running a course right now, on, Royal Wise all about, it's a two hour course about how to process and do these things inside of QuickBooks online. You can get a link there for it for the course, 70 bucks. Even if you, can't attend today you'll have access to the, recordings and the q and a after, the fact. So there's a link there for that. Then there's always, what about desktop? You've got a wizard inside of desktop. You, it's using a, they partner with tax 10 99. It is a peta the first time especially that would be the pain in the ass peta. Because you have to set up the web, the QB web connector, there's a plugin. But once it's set up, the sync is established. You finish and file those things inside of tax 10 99. But then we all have this question really is QuickBooks enough for all the things that we do inside of, QuickBooks for 10 99 purposes. Jennifer Diamond who's participating, she's in she's in the chat there. She's created this wonderful resource for a lot of the questions that I've seen people asking here. What about Venmo? Friend, friends and family versus Zelle or what have you. So she has a, 10 99 decision matrix. There's a payment matrix discussion forums as well as 10 more, 10 99 events as if you didn't have enough fun, from for 10 90 nines. They have, I love this. She just going all, she just sent this me this morning via WhatsApp. Oh, sorry Dan. You know me like, shut up Dan. I haven't talked for two months. That's, yeah. She just sent me this morning via WhatsApp and I immediately, I don't have a firm anymore. I sent it to all of them. I'm like, Hey, go push this to our clients. And then I put it in my hub.'cause this is such a cool little resource, gets people really going because you know how it is. Nobody worries about it.'cause we don't know what people are doing unless they're doing it in their bank account until. January 20th. They're all, Hey, by the way, who do I 10 99? You're like, what? So this is a great tool to give to your clients. I'd push this to my clients, to be honest, and she's giving us for, just a QB power hour,$10 and 99 cents off. The, there's promo code is QB Power Hour 10 99. If you were to set, that up. Now let's talk about Avalara 10 99. Giselle or, Gordon, what. When is it a good fit for the Avalara 10 99 solution with QuickBooks? A couple highlights, and I know Gordon will be sharing his screen here momentarily. Do a very quick and dirty demo so you can see what our beautiful product looks like and how to move through it. But just a couple quick notes. We place so nicely with QuickBooks, and Avalara Tie nine are great friends. Some features that could improve your process above and beyond just the QuickBooks that Rich had talked us through. Easy import from QuickBooks, a W nine and W eight digital collection tool validation and storage tool live at your fingertips. Bulk tin matching. So if you're not doing tin matching or you're into the IRS site or another third party. You can stop that, you can do that right in our 10 10 99 solution. You can do that live in real time and bulk. IRS and state e-filing. We also do print and mail services, so you don't need to buy the pre-printed forms. You can do that directly within our tool. We have a secure print and mail facility that does that for us. Has address verification and tracking delivery of those 10 90 nines to your recipients. We also do e statements for free and they're IRS compliant as well. And we do over 40 plus 10 90 nines. Even the 10 98 series, even the 10 42 s, even the Canadian slips, the t fours, we do a whole pile of'em. We'd love to take you on a quick tour if you have a brief moment. Yay. Jennifer loves track 10 99. Yes you do. So I'm. I'll stop sharing. So, Gordon you, should be able to share and Yeah, take a 50, 50,000 foot tour of Yeah. Yeah. 10 99. Really, try to make this as easy as we can in those situations where you need to collect w nines. We make it as easy as picking the form type. You need a name and an email to send out a link. And then we've built out a form so that you don't have terrible handwriting to decipher. When you look at a W nine, you don't have partially filled out overfilled out. I meant checking three different boxes or forgot to write s, c, or P on the line. We've built out a lot of those things and we also in our W nine help to collect the IRS required consent to e deliver 10 99, so that you can easily and compliantly deliver those without having to pay for mailing. And probably my favorite part but when a user clicks sign and continue, it is gonna perform a live real time direct to the IRS Tin match and provide the feedback to them. So if it doesn't match, we ask that vendor, that contractor takes a minute and fixes their W nine. So by the time you get it, it's already matched up and, ready to go. So a really great tool to clean up that aspect and to really make sure you are taking in good info from the start. But above and beyond that, we also allow you to have unlimited number of clients in the system, unlimited number of users at no cost in the system. Permissions, like only see the users you need. Or I'm sorry, the clients that a certain user needs or a group of clients that a user needs as well as ability to limit things like filing or mail access. We do also make it very easy via our imports. We are directly hooked up to QBO and as of, I'm gonna say this here and hope that I'm, my, my product team doesn't kill me. But as of next week, we will also have QuickBooks Desktop as well. Very, quick and easy auto maps expense accounts. But you can also set your own chart of accounts to map to the boxes of the, 10 90 nines you want to file. We audit everything to make sure that the IRS will accept any of those the forms that come through. We give you the choice of dates of when things go to the IRS, when they get emailed. When they get mailed. We tin match and address verify. And then we also, as Joselle said, once filing has been completed, we'll track. Mail through delivery, eDelivery, the emails, the, the accepted. We track everything with the IRS and the states for you. And then we allow for free corrections in two clicks to make a correction with the IRS for free. Making it really easy tool to use on a year round basis. And then the starting to see some questions about the costs and the fees and those types of things. You what, is the pricing model for? 10 99 Avalara. Platform two for simple, super simple. Give us two numbers. The first number is how many total? 10 90 nines and w nines if you choose to, would you like to run through our system? Second one is, do you wanna print a mail using our services? That is it. So we can certainly configure a quote for you. I'm, I don't know, Dan, if you have the final slide of call to action on how to get ahold of us. But that would be the best way to do share your you don't need to give us a file or anything at this point. Just need to know approximately how much, and we can configure a quote. Yeah. We've got, I think somebody is asking in the, chat where they can get the slides. Our, we, our landing page that we have has all the slides, the links to the 10 99 problems.io as well as the 10 99 course, as well as information about the Avalara 10 99. But let's go ahead and launch that last poll question, Sharrin. I did it. Yes. You, yay. It was just the last one I didn't know. Yeah. Just was this information useful? I know there's a lot of information to, to cram in there, but we wanted to make sure that we set the, foundation, but also gave you links to, additional resources for those that are specializing in this. Because I, I think I learned from from Avalara, do what you do best and then outsource the rest. Yeah. And if you, want to get involved with sales tax, great. If you're not, use Avalara or AvaTax. If you wanna get involved with 10 99 preparation, great. If not. Use, something else, right? Because especially with this with this platform, you can get into more, more 10 99 services. Even more so than what QuickBooks offers. Sharrin any, final thoughts? Rich? I have one, one nice caveat. People ask me what happens when you make a boo And basically you do a new 10 99 at the box at the top, you mark corrected and you send that back to the IRS. It's, a superseded form, so it will supersede what you originally sent them. You don't have to send everybody's in, just the ones that need changing. But if my recollection is correct, last year it said whatever method you use to e-file is the same one you have to do for corrected. It has to be on the same platform. So I can't do say, oh, this is a boo and go to my friend down the street and say, okay, can you file this corrected me. You have to go to your original source. So if you did it on QuickBooks, you have to do it through QuickBooks to do any sort of fixing of booboos. Karen. You were saying? No, I was just I've, Avalara's been around for a while. They have a really, they have a cool tool. They do more than just 10 90 nines. But if you're having to ask a ton of questions about 10 90 nines and you're confused, just know, think about, this is my rule thumb. Think about how long it takes you to figure this information out, to go through it and decide if it's worth what you can just outsource to a company that all they do is 10 99. So if you're paying them,$50 a month and you have hundreds of clients, it's sometimes makes more sense. So just remember this day and age of technology and software. You don't have to know everything right now. You don't have to do it on your own. Utilize the software and if you learn and decide, it's easy along the way. But don't be afraid of the software guys. You're not gonna lose money. You're probably gonna make more in the long run. And then next week or next time on the QB Power Hour we're gonna be talking about the changes that are coming up to Intuit Accountant Suite or QBOA. Definitely that will probably be, a time when Sharrin, skips her resolution of not saying nice things about, it. Do it mean you don't wanna try? We unpack that. What they do it to themselves. I'm just saying what everybody's thinking. Don't kill the messenger. You're just saying your outside voice is, is, available for others outside voice. Oh, we appreciate you joining us. Exactly. We appreciate you joining us this week on the QB Power Hour. We'll see you next time. And hopefully everybody has a, wonderful and safe, have a great day everyone. Bye everyone.