information return

Thân thiện

A taxpayer files an information return with the tax authority.

Definition

1. Noun:
   • A tax document submitted to a revenue agency: An "information return" is an official form filed with a tax authority, such as the IRS in the United States. Its primary purpose is to report specific types of income or financial transactions.
   • A report without calculated tax liability: Crucially, this return provides data to the tax collector but does not itself calculate the amount of tax owed by the recipient of the income.

Usage Examples

• Noun:
  • Businesses must file an information return, such as a Form 1099, to report payments made to independent contractors.
  • Receiving an information return does not necessarily mean you owe taxes; it simply means a transaction was reported to the government.

Advanced Usage

• Distinction from an Income Tax Return: An "information return" (e.g., Form W-2, 1099 series) is typically filed by a payer (like an employer or bank) to inform the government about payments made. The recipient then uses the data from these information returns to complete their personal income tax return (like Form 1040), where the actual tax liability is computed.
• Filing Requirement: The entity making the payment (the filer) is legally obligated to submit the information return and provide a copy to the recipient.

Variants and Related Words

• Return (n): A general term for any form or document filed with a tax authority.
• Information Reporting: The broader system or requirement mandating the submission of information returns.
• Form 1099: A common series of information return forms used in the U.S. to report various types of income other than wages, salaries, and tips.
• Form W-2: The specific information return used by employers to report an employee's annual wages and withheld taxes.

Synonyms

• Report: (in the specific context of tax documentation)
• Information report: (a less formal synonym)

Related Phrases

• To file an information return: The action of submitting the document to the authorities.
  • The company must file an information return for every non-employee paid over $600 in a year.
• To receive an information return: To get a copy of the document as the recipient of the reported payment.
  • I received three different information returns from my freelance clients this tax season.

Học thuật

Noun

1. a return that provides information to the tax collector but does not compute the tax liability