Form 1099 Information Returns
Form 1099 Information Returns
All businesses are required to issue Form 1099 to most non-corporate entities that they have made payments to in 2012. These include individuals, partnerships, and LLC's who provide services or materials as well as payments made by businesses for interest and dividends.
Form 1099s must be mailed to the payee by January 31 and must be filed with the IRS by February 28.
We use the website FileTaxes.com to file 1099's. The charge is $4.59 per 1099 and includes the mailing of the form to the recipient and the filing of all forms with the IRS. We recommend this site as an easy way to get your 1099′s filed.
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Form 1099-Misc
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File Form 1099-MISC, Statement of Recipients of Miscellaneous Income, for each person, other than corporations to whom you have paid at least $600 in rents, payments for services (including payments for parts and materials), prizes and awards, amounts paid to attorneys, or medical and health care payments. Report only payments made in the course of your trade or business (including Federal, state, or local government agencies and activities deemed nonprofit).
You must also file form 1099-Misc for the following payments:
1. at least $10 in royalties or broker payments in lieu of dividends or tax-exempt interest,
2. all amounts of fishing boat proceeds,
3. direct sales of $5,000 of consumer products to a buyer for resale, or.
4. for each person from whom you have withheld any Federal income tax under the backup withholding rules regardless of the amount of the payment.
Payments to Corporations
Generally, payments to corporations are not reportable. However, you must report payments to corporations for the following:
• Medical and health care payments (Form 1099-MISC),
• Withheld Federal income tax or foreign tax (Form 1009-MISC),
• Barter exchange transactions (Form 1099-B),
• Substitute payments in lieu of dividends and tax-exempt interest (Form 1099- MISC),
• Acquisitions or abandonments of secured property (Form 1099-A),
• Cancellation of debt (Form 1099-C),
• Payments of attorneys’ fees and gross proceeds paid to attorneys (Form 1099- MISC),
• Fish purchases for cash (Form 1099-MISC)
Important note: Partnerships, LLPs, and LLCs are not considered corporations. Payments to these entities are reportable in accordance with the guidelines above.
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Other Form 1099 rules
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Penalties
The IRS continues to crack down on non-filing of information returns. Stiff penalties are imposed on those who do not file. The amount of the penalty is based on when you file a correct information return. The penalty is:
• $30 per information return if you correctly file within 30 days from the due date with a maximum penalty of $250,000 per year ($75,000 for small businesses).
• $60 per information return if you correctly file more than 30 days after the due date but by August 1, with a maximum penalty of $500,000 per year ($200,000 for small businesses).
• $100 per information return if you file after August 1 or do not file required information returns, with a maximum penalty of $1,500,000 per year ($500,000 for small businesses.)
Magnetic Media/Electronic Reporting
A filer must file on magnetic media or electronically if it files 250 or more information returns. Informational returns include Forms W-2, 1099 series, 1042s, 1098, 5498, 6248 and 8027. The 250 return requirement is applied on the basis of the total number of each type of informational return filed.
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Form 1099-DIV
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File Form 1099-DIV, Statement for Recipients of Dividends and Distributions, for each person:
(a) to whom you have paid gross dividends and other distributions on stock of $10 or more
(b) for whom you have withheld and paid any foreign tax on dividends and other distributions on stock, if the recipient can claim credit for the tax on his or her income tax return,
(c) for whom you have withheld and Federal income tax under backup withholding rules, or
(d) to whom you paid $600 or more as part of liquidation.
You are not required to file Form 1099-DIV for payments made to certain payees including a corporation, a tax-exempt organization, an individual retirement arrangement (IRA), a U.S. agency, a state, the District of Columbia, a U.S. possession, or a registered securities or commodities dealer.
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Form 1099-INT
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File Form 1099-INT, Statement for Recipients of Interest Income, for each person:
(1) to whom you paid amounts of at least $10,
(2) for whom you withheld and paid foreign tax on interest if the recipient can claim credit for the tax on his or her return, or
(3) for each person from whom you withheld any Federal income tax under the backup withholding rules regardless of the amount of the payment.
Generally, you are not required to file Form 1099-INT for payments made to certain payees, including a corporation, a tax-exempt organization, and individual retirement arrangement (IRA), a U.S. agency, a state, the District of Columbia, a U.S. possession, or a registered securities or commodities dealer.
All businesses are required to issue Form 1099 to most non-corporate entities that they have made payments to in 2012. These include individuals, partnerships, and LLC's who provide services or materials as well as payments made by businesses for interest and dividends.
Form 1099s must be mailed to the payee by January 31 and must be filed with the IRS by February 28.
We use the website FileTaxes.com to file 1099's. The charge is $4.59 per 1099 and includes the mailing of the form to the recipient and the filing of all forms with the IRS. We recommend this site as an easy way to get your 1099′s filed.
————————————————————-
Form 1099-Misc
————————————————————-
File Form 1099-MISC, Statement of Recipients of Miscellaneous Income, for each person, other than corporations to whom you have paid at least $600 in rents, payments for services (including payments for parts and materials), prizes and awards, amounts paid to attorneys, or medical and health care payments. Report only payments made in the course of your trade or business (including Federal, state, or local government agencies and activities deemed nonprofit).
You must also file form 1099-Misc for the following payments:
1. at least $10 in royalties or broker payments in lieu of dividends or tax-exempt interest,
2. all amounts of fishing boat proceeds,
3. direct sales of $5,000 of consumer products to a buyer for resale, or.
4. for each person from whom you have withheld any Federal income tax under the backup withholding rules regardless of the amount of the payment.
Payments to Corporations
Generally, payments to corporations are not reportable. However, you must report payments to corporations for the following:
• Medical and health care payments (Form 1099-MISC),
• Withheld Federal income tax or foreign tax (Form 1009-MISC),
• Barter exchange transactions (Form 1099-B),
• Substitute payments in lieu of dividends and tax-exempt interest (Form 1099- MISC),
• Acquisitions or abandonments of secured property (Form 1099-A),
• Cancellation of debt (Form 1099-C),
• Payments of attorneys’ fees and gross proceeds paid to attorneys (Form 1099- MISC),
• Fish purchases for cash (Form 1099-MISC)
Important note: Partnerships, LLPs, and LLCs are not considered corporations. Payments to these entities are reportable in accordance with the guidelines above.
————————————————————-
Other Form 1099 rules
————————————————————-
Penalties
The IRS continues to crack down on non-filing of information returns. Stiff penalties are imposed on those who do not file. The amount of the penalty is based on when you file a correct information return. The penalty is:
• $30 per information return if you correctly file within 30 days from the due date with a maximum penalty of $250,000 per year ($75,000 for small businesses).
• $60 per information return if you correctly file more than 30 days after the due date but by August 1, with a maximum penalty of $500,000 per year ($200,000 for small businesses).
• $100 per information return if you file after August 1 or do not file required information returns, with a maximum penalty of $1,500,000 per year ($500,000 for small businesses.)
Magnetic Media/Electronic Reporting
A filer must file on magnetic media or electronically if it files 250 or more information returns. Informational returns include Forms W-2, 1099 series, 1042s, 1098, 5498, 6248 and 8027. The 250 return requirement is applied on the basis of the total number of each type of informational return filed.
————————————————————-
Form 1099-DIV
————————————————————-
File Form 1099-DIV, Statement for Recipients of Dividends and Distributions, for each person:
(a) to whom you have paid gross dividends and other distributions on stock of $10 or more
(b) for whom you have withheld and paid any foreign tax on dividends and other distributions on stock, if the recipient can claim credit for the tax on his or her income tax return,
(c) for whom you have withheld and Federal income tax under backup withholding rules, or
(d) to whom you paid $600 or more as part of liquidation.
You are not required to file Form 1099-DIV for payments made to certain payees including a corporation, a tax-exempt organization, an individual retirement arrangement (IRA), a U.S. agency, a state, the District of Columbia, a U.S. possession, or a registered securities or commodities dealer.
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Form 1099-INT
————————————————————-
File Form 1099-INT, Statement for Recipients of Interest Income, for each person:
(1) to whom you paid amounts of at least $10,
(2) for whom you withheld and paid foreign tax on interest if the recipient can claim credit for the tax on his or her return, or
(3) for each person from whom you withheld any Federal income tax under the backup withholding rules regardless of the amount of the payment.
Generally, you are not required to file Form 1099-INT for payments made to certain payees, including a corporation, a tax-exempt organization, and individual retirement arrangement (IRA), a U.S. agency, a state, the District of Columbia, a U.S. possession, or a registered securities or commodities dealer.