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This form is used to report business you have done with independent contractors (who are not corporations) and medical corporations.
Complete Form 1099-Misc:
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- For every individual, sole proprietorship, partnership or medical corporation which you purchased $600 or more for services (not products);
- If you purchased $5,000 or more of consumer products from a non-corporation that you intend to resell outside a permanent retail establishment;
- If you paid a non-corporation $10 or more in royalties; or
- If you paid a landlord $600 or more (and your landlord is not a corporation).
If you paid over $600 in interest (to a non-corporation), you must file IRS form 1099-I. To request this form, call the IRS at (800) 829-3676 or
go to http://www.irs.gov/formspubs/index.html
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| Forms to use | |
1099-M Annual Information Form for Independent Contractors
1096 Transmittal Form |
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| How often? | | Annual reporting requirement |
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| Due date | |
January 31 to the recipient
February 28 to the IRS |
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| To do it yourself | |
| 1099s should be typed. Prepare a 1099-Misc for each recipient.
| | Line | What to do |
| Left side |
- Payer is your company
- Recipient is the person you paid.
- Payer's federal identification number is your social security number.
- Recipients' identification number is their social security (if you paid an individual
or sole proprietorship), or their SS-4 number if you paid a partnership.
Remember, if you paid a corporation, you do not have complete a 1099-Misc.
- Leave "Account Number" blank unless you use vendor account numbers.
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| Right side | Fill in the relevant boxes. Here are the most commonly used.
| 1. | Rent to landlords (if you paid more than $600). |
| 7. | Compensation to independent contractors for services (if you paid them more than $600). |
| 9. | Check the box if you purchased over $5,000 of products for resale from this (non-corporate) vendor. |
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| How to complete form 1096 | |
| 1096's should be typed. Prepare one form to transmit all the 1099-Misc.
| | Line | What to do |
| Top | - Leave blank
- Your social security number
- Enter the number of 1099s you are enclosing
- 0, unless you withheld income tax (line 4 on each 1099-Misc)
- Add up boxes, 1,2,3,5,6,7,8, and 10 for all the 1099-Misc's Usually all but
1 and 7 are 0.
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| Bottom | Check box 1099-MISC - 95 |
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| How to submit | |
- Mail Copy A of 1099-M (the red page) to the IRS with transmittal Form 1096
- Mail or deliver Copy B and Copy 2 to the receipient (the person or company you paid)
- Keep copy C for your records
- The IRS will automatically send your 1099-M information to the state tax authority.
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| Magnetic scanners | |
The IRS wants to speed its processing by using magnetic scanners. Thus, it has the following rules ($50 fine for ignoring them!)
- Type forms - regular type style
- Use original forms - no copies
- Submit entire 8 x 11 page - don't cut it up
- Don't staple
- Don't use dollar signs, commas or other symbols, except you should use decimal points to show dollars and cents.
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| Questions? | |
For forms call (800) 829-3676. You cannot obtain original forms from the Internet. For information, call (800) 829-4933 or
read Publication 937 Business Reporting.
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