Posted by Admin on 23. January 2012 02:46
Steps to Take to Prepare for 1099 -MISC Forms
You should request that your vendors, contractors and other payment recipients submit to you a Form W-9. The W-9 will provide you with the legal name, address and taxpayer identification number for the vendor, which is the information you will need when preparing any 1099 -MISC forms.
You should also keep track of your payments in your bookkeeping system. You will need to know whether the payment falls under any of the categories listed above for reportable payments, whether your payments to a particular recipient reaches the $10 or $600 threshold for reporting, and finally you'll need to know the exact amount you paid the recipient for the year.
Penalties for Filing Form 1099 -MISC Late
The following penalties will be in effect for the year 2011:
$30 penalty for filing a 1099 not more than 30 days late;
$60 penalty for filing a 1099 more than 30 days late and before August 1;
$100 penalty for filing a 1099 on or after August 1;
$250 penalty for intentional failure to file.
These Form 1099 -MISC penalties were increased as part of the Small Business Jobs Act, and have not been repealed.
Deadlines for 1099 -MISC Forms
Provide the recipient with his or her copy of the Form 1099 -MISC by January 31 reporting income for the previous calendar year.
Mail the Form 1099 -MISC to the IRS by February 28.
Or electronically file 1099 s with the IRS by March 31.
Businesses can request a 30-day extension to file 1099 s with the IRS using Form 8809. An extension does not permit additional time for providing the 1099 to the recipient.
Visit www.etax1099.com to file your form 1099 MISC