1099 MISC INCOME

If you paid $600 or more to a non-employee or $10 or more in royalties during the year, you must send that person a 1099-MISC showing the total amount you paid for that year. The 1099-MISC must be submitted to the payee by January 31 of the following year, and it must also be submitted to the IRS by the end of February.
A 1099-MISC form is used to report miscellaneous income to the IRS. This form is used for:

• Income earned by an independent contractor but not an employee
• Fees, commissions, rents, or royalties paid
• Payment for prizes, awards, or legal services
• Excess golden parachute payments
• Medical and health care payments

Pages to 1099-MISC
The 1099-MISC is a multi-part form.

• Copy A is submitted to the IRS by the payer
• Copy 1 is submitted to the state tax department by the payer
• Copy B is for the recipient
• Copy 2 is given to the recipient for filing with the state tax return.
• Copy C is kept by the payer.

1099-MISC Forms generating

1099misc

Do you own a small business pay another person or business more than $600 total in 2010 for services rendered? You may have to provide them a 1099-MISC form. There are lots of rules, go through 1099-MISC Instructions for complete details. 

The Internal Revenue Service (IRS) requires businesses (including not-for-profit organizations) to issue a Form 1099 to any individual or unincorporated business paid in excess of $600 per calendar year for services rendered. This is required whether these payments are spread out over the course of the year or are paid in one lump sum payment. The penalty for failure to file Form 1099 can be as much as 50% of the amount paid for services.

HAVE YOU GIVEN 1099MISC TO YOUR CONTRACTOR?

 

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Form 1099-MISC is used to report certain types of payments made in the progress of a trade or business. If you're in business or self-employed, you may need to submit this report to both the Internal Revenue Service and the person or business to whom so ever you paid.

 When is Form 1099-MISC Needed?

Businesses will need to fill outa Form 1099-MISC for persons, vendors, subcontractors, independent contractors, and others in the following circumstances:

$600 or more per year is paid for

• cash payments to fishermen
• crop insurance proceeds,
• medical and health care payments,
• prizes and awards,
• proceeds paid to attorneys,
• rents,
• services (including parts and materials), and
• other types of payments not covered by another information reporting document.

Reporting such payments is required if the recipient of the payment is not a corporation -- for example, when the recipient is an individual, partnership, a limited liability company treated as a partnership or sole proprietorship. Payments made to corporations are required in the case of medical and health care payments and in the case of legal fees paid to attorneys. Other types of payments made to corporations may be reported using Form 1099-MISC, but is not required.

E-Filing Form 1099misc is as easy 1-2-3 

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