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If your business needs to issue a 1099 Form to a contractor or vendor, it is time to get a W-9 Form on file for each entity.  The W-9 gathers the information needed to document 1099 eligibility, the taxpayer ID number, and a current mailing address. The 1099 form must be submitted to the taxpayer by January 31st and to the IRS by February 28th.

The W-9 form can be downloaded here: http://www.irs.gov/pub/irs-pdf/fw9.pdf

Who gets a 1099 Form?

• Non-Employee Compensation or Independent Contractor. Businesses are required to file Form 1099-Misc for amounts of $600 or more paid for repairs, maintenance or other services performed by non-employees.  If you’ve hired carpenters, handymen, plumbers, electricians, accountants, landscapers or paid for other services from non-employees, have the contractor provide a W-9 and issue a 1099-Misc.
• Rents.  Rents collected in more than $600 in 2011 require a 1099-Misc, unless such rents are collected by a real estate agent.
• Royalties.  Royalties collected of $10 or more  in 2011 require a 1099-Misc.
• Gross Proceeds Paid to an Attorney.  If your business paid $600 or more in legal fees (even if it was for another entity), you need to file a 1099.  The exemption from reporting payments made to corporations do not apply to payments for legal services.

For more information, contact your tax attorney, your CPA or the following IRS Publication: http://www.irs.gov/pub/irs-pdf/i1099msc.pdf

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• What Are the Different 1099 Tax Forms? (turbotax.intuit.com)
• End of Year Tax Filings: Form 1099-MISC (smallbizsurvival.com)
• New Preparation Rules for an old form [Form 1099-MISC] and New Form 1099-K (abizinabox.wordpress.com)
• 2011 1099 Forms, Plus New Form 1099-K, Due This Month (blogs.findlaw.com)
• Online Business Owners Prepare for Form 1099-K (internetbiztaxtips.com)

Tags: 1099-Misc, Form 1099, independent contractor, Internal Revenue Service, IRS, IRS tax forms, W-9

This entry was posted on Monday, January 23rd, 2012 at 9:26 am and is filed under small business, Tax. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.