IRS Form W9,1099,W4 and 1040

Form W-9 Request for Taxpayer Identification Number and Certification is a one-page IRS information form that individuals and businesses use to send their taxpayer identification number to other individuals, clients, banks and other financial institutions. Who has to fill out a W-9?
You’re a contractor, freelancer or consultant and plan on getting paid more than $600 by one particular client in a tax year. They’ll need you to send them a completed W-9 before they can send you a Form 1099-MISC form. You’ll need that to report your income to the IRS.
Banks sometimes also need a W-9 when you open a new account with them.
Your bank or the financial institution you invest with might also need a completed W-9 from you in order to submit one of the other types of 1099 forms, which they’ll use to report things like interest income, distributions and proceeds from real estate transactions (i.e. if you sell your house).

If someone forgives or cancels a debt you owe them, they’ll need to file Form 1099-C with the IRS. They’ll need you to send them a completed W-9 to complete the process.

Penalties? Misuse of TINs or SSNs – If a business misuses or improperly discloses a TIN or SSN provided on a W­9 this violates federal law and the company may be subject to civil and criminal penalties. Not Filing 1099s Timely or Filing Incorrect Information – Penalty rates vary based on the size of a business and the time when correct information is received. Fines range between $50 to $530 per 1099. The difference between tax avoidance and tax evasion is the thickness of a prison wall.
- Denis Healey FORM 1099 Starting in tax year 2020, Form 1099-NEC will be used to report non-employee compensation totaling more than $600 in a year paid to a non-employee for certain payments from the trade or business. Previously, business owners would file Form 1099-MISC with an amount in box 7 to report non-employee compensation.
For tax pros who have been around for a while, you might be familiar with Form 1099-NEC; it was used until 1982 when the IRS added box 7 to Form 1099-MISC and discontinued Form 1099-NEC to simplify filing. What is reported on Form 1099-NEC?
If the following three conditions are met, clients can report a payment as non-employee compensation:
They made the payment to someone who is not their employee (including parts and materials).
They made the payment for services in the course of their trade or business (including government agencies and nonprofit organizations)

What You Need to Know About Potential for Penalties?
It pays to mind the tax-filing deadlines, too. Late filing of mandatory 1099s could lead to penalties ranging from $50 to $280 per 1099, with a maximum of $1,130,500 a year for your small business. The amount of the penalty is based on when you file the correct information return, as follows:
$50 per 1099, if you file within 30 days of due date; maximum penalty of $197,500
$110 per 1099, if you file more than 30 days after the due date but by August 1; maximum penalty of $565,000
$280 per 1099, if you file after August 1; maximum penalty of $1,130,500
Taxation is the price which civilized communities pay for the opportunity of remaining civilized.-Albert Bushnell Hart FORM W-4
The official title of Form W-4 is Employee’s Withholding Certificate. When you complete the W-4 correctly, it informs your employer of how much money to withhold from your paycheck for federal income taxes. Because of this, you need to fill out a new copy of the form anytime you start a new job. As noted earlier, you should also fill out a new W-4 if you get married or divorced, have a child, start a side hustle or paid too little or too much in taxes. The IRS actually recommends filling out a new W-4 each calendar year to ensure that you’re paying the right amount in taxes.

Employees fill out a W-4 form to let employers know how much tax to withhold from their paycheck based on filing status, dependents, anticipated tax credits and deductions, etc.

If you don’t fill it out correctly, you may end up owing taxes when you file your return.
The IRS revamped the form for 2020 with the aim of making it easier to fill out.
Employees can change their withholding at any time by submitting a new W-4 to their employer.
What Is a Form W-4 Used For? When you start a new job your employer will ask you to fill out a W-4 form. It’s important to complete a W-4 correctly because the IRS requires people to pay taxes on their income gradually throughout the year. If you don’t withhold enough tax, you could owe a surprisingly large sum to the IRS in April, plus interest and penalties for underpaying your taxes during the year. What is penalty? An employee may be subject to a $500 penalty if he or she submits, with no reasonable basis, a Form W-4 that results in less tax being withheld than is required. FORM 1040 Form 1040 is the standard federal income tax form people use to report income to the IRS, claim tax deductions and credits, and calculate their tax refund or tax bill for the year. The formal name of the form 1040 is “U.S. Individual Income Tax Return.” Who Should File a 1040 Tax Form?
Self-employment income of $400 or more
Income you receive as one of these:
Partner in a partnership
Shareholder in an S corporation
Beneficiary of an estate or trust
Tips you didn’t report to your employer.
You owe Alternative Minimum Tax (AMT)
You owe household employment taxes.
You’re eligible for the premium tax credit.
Your employer didn’t withhold Social Security and Medicare taxes from your pay.
You’re repaying the first-time home buyer credit.
You have a foreign account.
You received distributions from a foreign trust.
You qualify for the foreign earned income exclusion.
You qualify to exclude income from sources in Puerto Rico or American Samoa since you were a bonafide resident of either.
What is penalty for filing late? The penalty for filing late is normally 5 percent of the unpaid taxes for each month or part of a month that a tax return is late. That penalty starts accruing the day after the tax filing due date and will not exceed 25 percent of your unpaid taxes.

The trusted financial expert: Buddy Loan

Many business dynamics work well with right finances at right time. From start- up firms to MNC big channels, there comes a need to invest at the right time & at a cost. All essential business owners have one common question, how can we avail a hassle-free loan irrespective of the amount?

Here’s one such platform with Buddy Loan. Avail a business loan with Buddy Loan, now! Yes, there are business loan sanctions with 80% approval rate. Minimal documentation & formalities make Buddy Loan unique.

Loan application is completely digital and need no collateral for loan approvals. However, it only requires bare minimum of documents. Aadhaar is specifically one amongst them. They are a part of KYC (Know Your Customer) requirements as well.

Aadhaar for business loan!

Buddy Loan dispenses loan in less than expected time. There is access to multiple lenders and hence your financial obligations stand a higher chance to quick solutions. Here, Aadhaar helps connect and process your loan application with the online verification process. It is by law, mandatory to get the right KYC for documentation.

Banks and financial institutions need to stay updated on the latest information of the borrowers. Though various documents can be considered as eligible for KYC (Know Your Customer), Aadhaar card holds the biometrical information of identity, address & visual proof.

However, certain documents like PAN card, Aadhaar letter, driver’s license, Voter IDs and passport can serve as KYC (Know Your Customer) documents too. The requirement on document set depend and vary from lender to lender.

Importance of KYC: Aadhaar card

KYC denotes a borrower’s identity, residence & visual as a proof approved by the government. Aadhaar qualifies all the criterias in one card and serves best while availing a personal loan. However, Aadhaar is not the only document that needs to be submitted while introducing a loan to the borrower.

3 year ago, now in 2018, fintech solutions made Aadhaar card documenting mandatory. In order to open accounts, use ATM cards or avail a personal loan. Government of India officialised the documentation of Aadhaar card details.

Outstation & overseas travel is on the move if you have Aadhaar card handy. The document is similar to a social security card in United States Of America. Directing to a loan, Buddy Loan dispenses quick loans for travel, education, marriage, business & even vehicle loan with Aadhaar & PAN.

They’re available on weekends, 24/7 & need very minimal details to process the loan application. Competitive interest rates starting at 11.99% pa with flexible loan tenures.

In a nutshell:

Aadhaar loans are available with comprehensive documentation, according to the laws passed by the Hon’ble Judge of Supreme Court of India. Customer consents is of major importance in loan documentation. KYC throws detailed light on the orders passed.

Thus, the all purpose document, can help you avail a loan in minutes and increase your chances of loan approval irrespective of the amount. Quick & hassle-free loans are a pleasure in times of emergency with an opportunity to build credibility. Hence, Aadhaar card is mandatory for borrower’s verification & remains the most preferred document.

Things to Know Before Investing in Mutual Fund

Mutual Funds have emerged as a preferred investment option of many; especially after the marketing thrust of AMFI (Association of Mutual Funds in India) it generated sufficient curiosity with its humourous yet informative ad campaigns.

Mutual Funds provide the convenience of investing minus the hassle. They are managed by smart fund managers who are there to deliver great returns for their investors.

So let’s get started,

Why invest in Mutual Funds?

Mutual Funds not only offer diversification and hassle-free investments but also provide great returns. Better returns than all the traditional investment instruments like FD. Start with a goal in mind and the timeline you’d like to keep investing. This helps in choosing the right Mutual fund that will help achieve your financial goal.

Consider the Risk factor

Investment is a continuous process and requires steely determination. The risk in mutual funds is varied and there are mutual funds to suit every type of investor. High, Moderate, and Low risk but apart from that one must know that mutual funds are subject to market risks. It’s imperative that you select the fund according to your risk profile. High-risk funds can give great returns but they can go either way too.

Mutual Funds are diversified

The biggest USP of mutual funds is its ability to diversify. One mutual fund can hold multiple stocks spread across many sectors so diversification is inherent. It is, however, advisable to spread your investment in 3-4 types of funds or baskets. This should cover the diversification part.

Know different loads

There are some expenses associated with Mutual Funds. It’s helpful if they are known beforehand like,

Entry Load: These are fees charged at the time of purchasing the mutual funds

Exit Load: These are fees charged at the time of redeeming your investment from a mutual fund

Depending on the fund’s policy they may charge one type of expense or all or even none.

Past Performance – Future Performance

As with stocks, it’s the same with Mutual Funds. Performance history is no guarantee of future performance. It’s helpful to know how the fund has been doing but that does not mean it will perform the same in future. It may or it may not, depends on the market and the fund management team.

Consultant Logo Design – Three Common Errors A Graphic Designer Should Avoid

Every business today is in dire need of new and refreshing ways to promote itself due to such intense and competitive times where customers are presented with a heap of services they can opt for. Therefore, there is a bunch of marketing tactics adopted by the contemporary business entrepreneurs out of which the most apprehended one is a logo.

It helps in reaching the mass audience which expands the overall business exposure both nationally and internationally. To put it simply, a business that reaches more, exposes more and attracts more is the winner in today’s competitive industry whereas; those who are not interested in creating a brand mark for their business are pushed backward.

Consulting businesses are also into the business of marketing themselves with the help of consultant logo but sometimes they end up with a redundant and outdated business identity. Why? Most probably because they think from their own perspective, so to create a brand mark identity one has to think from the mind of the target market.

Let me tell you what are the usual mistakes that a consultant company owner commits while designing his corporate identity?

1- Colors are the biggest part of the deal as every color has its own meaning which has to be reflected through a logo but most of the business owners tend to use the colors which they like and this is where their whole efforts get failed. It is therefore very crucial to choose the right color scheme for such corporate identity. You should;

a) Avoid your personal preferences for you might like red but that won’t go with the nature of the business you are running.
b) Study the color’s meaning so that you can make the most of them in order to impart psychological and emotional influences on your potential customers.

Colors that are mostly preferred by the graphic designers are green, black, navy and red while yellow and orange can be found as a combination to depict achievement, exuberance and boost.

2- This business provides technical solutions and advice to their clients; so in short, we can say that they are the solution providers. It is a common observation that these corporate identities seems not to invite customers for solving their problems. Moreover, it also looks fussy, cluttered and overdone at times which is the opposite of consulting business’s theme. In short, a consulting logo should look corporate in nature and unfussy in style.

3- When we say creative design, we mean a logo intelligently cultivated in a sense that it only represents a particular business. This goal can also be achieved with the help of simple text containing the business name only. Loads of colorful images with a mixture of many colors won’t do the work for you. You can also have a search on various huge corporate identities of this particular business to get an idea of what is creativity?

I haven’t told you about the secret techniques or something out of the world for creating these brand identities, the only thing you need to do is to think from your target audience perspective to come up with state of the art business identity.

Warning: You Don’t Need A Hairstylist, You Need an Image Consultant


This article explains why you don’t need a hair stylist. The problem with using a hair stylist is described. Basically the difficulty lies in the lack of a holistic approach, and the absence of an understanding of the big picture. Using an image consultant is a more effective approach to looking good.


You need to get your hair styled, that’s a given. But you don’t need a hair stylist to do it. The reason is that a hair stylist suffers from tunnel vision. This means they see only your head. They don’t take into consideration the bigger picture.

You need to have a person look at your career, your accomplishments, and your dreams before they touch a hair on your head. A hair stylist isn’t trained to do this, and as a result they’ll focus only on your hair. They miss the big picture.


True, many hair stylists are nice people. They’re friendly. They have to be since they work with people every day. So they may mislead you into thinking that they’re doing you a valuable service by styling your hair. But they’re limited in the same way that a trusts and estates lawyer is limited to knowing only what is related to trusts and estates. Sure, that lawyer may know a little bit about contracts and a little bit about Constitutional law, but he suffers from tunnel vision and can’t usually see beyond trusts and estates. In the same way, a hairdresser may know a little bit about your life and a little bit about your wardrobe, but he still suffers from tunnel vision and doesn’t see the big picture. Even the most celebrated and highest paid hair stylists suffer from this tunnel vision.

Remember, the big picture is all about you. It’s a vision of your hopes, dreams, and ambitions. Only an image consultant sees this big picture and can advise you on the appropriate hairstyles for your life, your goals, and your dreams.


Don’t sell yourself short by going to a hair stylist. You’ll miss out on the perspective that only an image consultant can provide.

Men and women of leisure use image consultants to show them new hairstyles that are cute for women, and dashing for men. Only after getting to know you will your image consultant introduce you to a barber or a hair stylist. He’ll even instruct the stylist in how to cut and style your hair for maximum effect. Of course, the cut will be tailored to your needs and lifestyle.

Can you imagine Keith Richards just walking into a barber shop and saying, “Cut my hair, please.” Absolutely not! Instead, he uses an image consultant to find out the best look for his rock and roll lifestyle, and then he gets the barber to do the job right by following the directions of the image consultant. Sometimes, out of frustration, Keith even cuts his own hair rather than walking into a barber shop where he knows they’ll ruin his look!

By using an image consultant you can avoid the tunnel vision that comes with going to a hair stylist or barber. In the final analysis, you’ll discover a better hair style, one more suited to your hopes, dreams, and lifestyle.

What Do You Need to Become a Beauty Consultant

As it is widely known “a thing of beauty is a joy forever”, outer beauty is considered a significant personality trait among the people across the globe. The desire to be beautiful is not simply a fad. Attractive faces ‘prime’ our minds to be more likely associated with a positive emotion. Therefore all human beings, especially women, are in a non-ending race of becoming and staying approved in the eyes of the beholder. People have been investing their hard-earned money every month for beauty products, beauty services, and the like in order to get approved by the masses.

A pretty face will always make a lasting impression. A beauty consultant is a person you have to trust when it comes to makeup. Beauty consultants are certified professionals who take care of the hair, nails, facial features, skin treatments and work on how to enhance them while keeping them as natural and pleasing to the eye as possible. People who have physical problems pertaining to the face such as scars, acne, oily skin and others should seek the guidance from a beautician.

You can find an abundance of salons, therapy centres, aromatherapy places, plastic surgery specialists and personal health consultants all around the United Kingdom. Becoming a successful cosmetologist yourself requires expert knowledge of various cosmetics, therapeutic know-how and requires a lot of practice in this trade. Other than that, the personal qualities of a beauty consultant are often more important than formal qualities. Beauty adviser should also be sophisticated, have a well groomed appearance and a high standard of personal hygiene.

Beauty consultants can be found in various beauty salons, clinics and hospitals, health spas and high-street hotels all over the Europe. They recommend products that are suitable for a customer skin type, skin tone, hair, makeup, clothing, and cosmetic procedures while providing tips about how to walk, speak, and carry oneself to improve personal image, and so making you feel more beautiful, natural and professionally polished. SearchMe4 is the online fast, free and friendly business search engine providing free access to the listings of the best beauty consultants and specialists all around the UK.

Warning: You Don’t Need An Image Consultant or Personal Stylist


This article explains why you don’t need an image consultant or personal stylist. It points out that using the services of an image consultant is a luxury and is usually only appropriate for those who are wealthy, successful, or on their way up in the world.


You may think that you need an image consultant or personal stylist, but the fact is that using one is a luxury, not a necessity. Most people can figure out what clothes to wear with some success on their own; although, unfortunately, many people make mistakes when selecting footwear and business and casual attire. Nevertheless, these mistakes are not life threatening. So most people can get by without an image consultant or personal stylist.


True, many successful musicians, actors, and politicians use image consultants and personal stylists. But they don’t need them either. They usually consider it fun and interesting to use such services. Keith Richards and Jeff Koons, for example, were both already successful and earning millions when they decided to use personal stylists to help them define their look. Their use of an expert in this capacity did not really make them that much more successful, either. They were able to afford the services, so they did it as a fun thing to do.


A necessity is something, like food, water, and shelter, that is vital to life. A luxury is something, like a diamond ring or a Caribbean vacation, that you don’t really need to survive but that is still nice to have. By now it should be clear that using an image consultant is not, strictly speaking, a necessity. By any reasonable man’s standards, it is a luxury.

Image consultants have an obligation to be honest, which is why we’re admitting that we’re a luxury. But for those who have the time and the inclination to enjoy life to the fullest, we’re here for you. Yes, we’re here to provide the same advice that celebrities and A-list actors receive all the time. Just keep in mind that using our services is a treat, like going away to Acapulco for a couple of weeks. You don’t need that, of course, but it sure can be fun.

The Best Thing About Social Media Consultants

It is not a surprise anymore that technology has brought about a lot of developments in man’s life. In the past couple of years, technology has introduced more projects to lessen the struggles of human life and one of them is the Internet. It has surely changed the way people communicated and the way people meet with other people. And this change has also brought about the desired changes in terms of doing business.

The internet itself did not stop developing tools that people can use to promote their products as well as to strengthen their business. Social media marketing has become one of the largest programs that promote business in the internet because it is the easiest way to reach out to people. However, if you are not yet sure what to do and where to start, you can always ask the help of social media consultants. They are good in doing business through social networking sites and they can do exactly what you want them to do.

If you are seriously considering finding the perfect consultant who can work well with you, then here are some of the things that make a perfect social media consultant:

The best person for the position is someone who can write well and produce quality content for your readers. If you already have an existing content, a social media consultant who is equipped with the right skills should be able to make good use of this content to optimize the website and drive more traffic into it. This shall also convince more and more people to read through.

The best person to become a consultant should know a lot of strategies in using social media marketing. There is no such thing as a fixed process of how things are done. It is about trying out new things all the time and making sure that each one works to your advantage.

Third of all, the person you choose to be your social media consultant should be a social being himself. He should be aware of the differences among the social networking sites and should know where your target audience is and be able to help your business.

Hiring Non-Immigrants by IT-Consulting Companies – Top Three Concerns

Information Technology consulting companies in United States hire foreign nationals from other countries. Dealing with immigration issues is one of their major challenges. Having worked in a Lawfirm and Information Technology consulting company, I can relate to the challenges that a business owner goes through. I am not an expert, but from my experience I would like to share my observation on IT Consulting companies that have say less than 50 employees. Let us name this group as IT-50 Business owner. Typically IT-50 business owner handles almost all the functions such as Business development, Recruitment and Immigration on her/his own. In my opinion here are the three major CONCERNS faced by these business owners, when hiring a Non-immigrant worker:

To hire an employee in the shortest possible time

While some companies choose to process their work permit applications in-house, others hire Immigration attorney/consultants. Typically an immigration team comprises of the business owner, Immigration Department (In-house or outsourced team) and Immigration Law firm. One of the biggest concerns is to hire a Non-Immigrant worker in the shortest possible time. This means the Immigration team needs to be aware of the time line, have checklists and systems in place to collect the documents from the prospective employee/employer. These documents need to be submitted in time to the Immigration Law firm for processing the work permit applications as per USCIS guidelines . Premium processing option is offered by USCIS for some petitions for quicker decision. Both the prospective employee and the employer needs to be aware of the document requirements for work permit and make sincere efforts to submit in time. In my experience I have found that having an efficient Immigration Department (In-house or outsourced team), that truly cares, commits and does timely follow up will definitely help in cutting the time in terms of proprietary work.

Record Keeping

For an employer to run his company with peace of mind, he wants to ensure that records pertaining to both the employer and employee are kept safe and are compliant with Governmental regulations. Many companies receive training from Immigration attorney/consultant to ensure compliance and proper record keeping. Some Immigration attorneys/consultants visit the employers’ facility to provide on the job training.

Employees need to be taken care of THROUGH the immigration process

In my experience this seems to be the biggest concern for IT-50 business owner. Immigration is a very important component for an employee’s retention. Hence the IT-50 business owner wants to make sure that the company provides proper and correct legal support. Some are very keen in hiring Immigration attorney/consultants that are conversant with the language/culture of the employee. This makes communication easy and facilitates smooth flow of the process. In addition to employee’s immigration issues, an IT-50 business owner wants his dependent’s Visa issues also to be addressed in correct and timely manner.

Action Exercises

Here are the two things you can consider doing:

Review your Immigration team’s performance. Are there any areas you can reduce the time taken to communicate effectively? Do you need to create checklist or automate? Just do it.

As you know Immigration is a very important component for an employee’s retention, survey your current employees, find out one key area that needs their attention and implement it right away.

Make the Best Out of Your Personal Branding Consultant Services!

The competition could hit anyone from anywhere. It could be out of the industry, within the industry or within oneself. Here, shall we discuss on how these three insurgencies strike any particular person or company, and what would be the role of a personal branding consultant in these situations:

Outside the Industry

A person may be from a particular industry, say for example a textile industry. And due to the steep and continuous growth or downfall in the parallel and non-parallel industries – such as the energy industry, or hardware industry, or even service industries like telecom; the company in the picture could bear the effects in minimal or greater extent. There could be an impossible number of combinations pertaining to this, but only for better understanding, here we take the hardware industry.

The relation between the textile industry and the hardware industry would merge and complement each other when it comes to the machinery needed for textile printing. If the machines needed for textile printing are not being manufactured efficiently, owing to some deficiency in procuring the machine’s hardware – that supports the built; the textile company could also face unknown consequences. Its prints could get inefficient. There could be a drop in the quality of the prints.

But, here’s where the role of a personal branding consultant comes into the picture. Consulting them results in the CEO’s ability to foresee the changes that are about to hit the market so that he/she is prepared to face it. It also helps the manager to face the consequences with a calm and a composed head.

Within the Industry

Only competition could rise within the industry or there could also be a dull performance in a particular year – owing to the changes in the policies of the government. A personal branding consultant prepares one’s mind-set of how to face dire consequences and how to maintain and retain the in-house public and the clients. Labour union problems may also arise. Here, the manager must have a commanding personality to gain everyone’s favour by being diplomatic.

Within Oneself

It is obvious that one can never be in the same energetic mood all the time. But, this must not affect the people working around you. If you have taken training under a personal branding consultant then, you must have developed the art of hiding or mixing personal emotions with the profession. This helps in building ones personality and gain favour from the colleagues.

Overall, a personal branding consultant equips a person with the strength, and the psychological control to handle himself during difficult times, which ultimately relates to your success.