INFORMATION RETURN Meaning and
Definition
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An information return is a document or report filed with a tax authority by an individual, organization, or entity to provide relevant financial or statistical details about a particular taxpayer's income, expenses, or other pertinent information. The purpose of an information return is to assist the tax authority in monitoring and ensuring compliance with tax laws.
These returns are typically used by tax authorities to gather data and verify the accuracy and completeness of taxpayers' income and expense reporting. They provide essential information such as wage and salary earnings, interest, dividends, self-employment income, and other types of taxable income. Information returns may also include details about deductible expenses, tax credits, or other relevant financial transactions.
Examples of commonly filed information returns include Forms W-2 for wages and salaries, Form 1099 for various types of income, and Form 1042-S for non-resident alien income. In addition to individual taxpayers, businesses, financial institutions, and other organizations are also required to file information returns that disclose information about payments made to individuals, contractors, or vendors.
Filing an accurate and complete information return is important, as any discrepancies or inaccuracies could lead to penalties, audits, or further investigations by the tax authority. Consequently, individuals and organizations should ensure that they carefully review their records and provide the necessary information within the specified timeframe to avoid any potential legal consequences.
Common Misspellings for INFORMATION RETURN
- unformation return
- jnformation return
- knformation return
- onformation return
- 9nformation return
- 8nformation return
- ibformation return
- imformation return
- ijformation return
- ihformation return
- indormation return
- incormation return
- invormation return
- ingormation return
- intormation return
- inrormation return
- infirmation return
- infkrmation return
- inflrmation return
Etymology of INFORMATION RETURN
The word "information return" is a compound term formed by combining the words "information" and "return".
1. "Information" originates from the Latin word "informatio", which means "a representation, idea, concept, or knowledge". It comes from the verb "informare", meaning "to shape, give form to".
2. "Return" is derived from the Old French word "retourner", which means "to turn back, come back" and ultimately comes from the Latin word "returnare" or "revertare", with the same meaning.
When combined, "information return" refers to a document provided to the Internal Revenue Service (IRS) or another tax authority that contains information about income, payments, or other financial transactions that are relevant for tax purposes.
Similar spelling words for INFORMATION RETURN
