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| 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.
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