Who must file form 1099-Misc?
If you or your business has paid a person during the year; at least $10 in royalties or broker payments in lieu of dividends or tax-exempt interest, at least $600 in rents, services (including parts and materials), prizes and awards, other income payments, medical and health care payments, crop insurance proceeds, cash payments for fish (or other aquatic lice) you purchase from anyone engaged in the trade or business of catching fish, or, generally the cash paid from a notional principal contract to an individual, partnership, or estate, Any fishing boat proceeds; or gross proceeds of $600 or more paid to an attorney.
Some new Legislation about Form 1099-MISC for 2011. At the end of 2010, many people were concerned about a law passed by the legislature that stated, all rental expense payments over $600 had to be reported to the IRS via a Form 1099-MISC. This law has been changed, and is no longer required.
If you fall into the category of someone who needs to file 1099-MISC, I would start by asking your payment recipients to submit to you a completed Form W-9. Form W-9 will give you all of the important information about the recipient. It will have the legal name, address, and their taxpayer identification number. That way you will be able to complete the Form 1099-MISC quicker. I would look over your receipts now, and if you have paid someone or are close to paying them the required amount to send them Form 1099-MISC, I would start requesting Form W-9′s from them.
1099-MISC has a few different deadlines to keep track of; you must provide the recipient with their copy of the form by January 31st, and you must electronically file the form to the IRS by March 31st. E-File Magic can help you accomplish both mailing the forms to your recipients and electronically filing the forms to the IRS.
Like with most things dealing with the IRS, if you don’t issue Form 1099-MISC on time you will be penalized. Here are the list of penalties: there is a $30 penalty for filing a 1099 not more than 30 days late; a $60 penalty for filing a 1099 more than 30 days late and before August 1; a $100 penalty for filing a 1099 on or after August 1; and a $250 penalty for intention failure to file.
E-File Magic can help you with all of your 1099-MISC needs. Download our simple to use software, choose whether you would like to print and mail or have E-File Magic Print and Mail the forms to your recipients for you, and in March we will e-File the forms to the IRS for you!