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Deadlines_Approaching_For_Filing_1099s_For_Independent_Contractors
| Deadlines Approaching For Filing 1099s For Independent Contractors
While the middle of January may seem a bit early to begin
thinking about taxes, 1099-MISC filing deadlines are looming for
businesses. Generally speaking, IRS 1099-MISC is the form used
to report miscellaneous income that you paid to persons during
2004 in the course of your trade or business.
Does This Apply To My Business?
The 1099-MISC forms must be issued to any person that you have
paid at least $600 in rents, services or other income payments.
Typically, you should issue the form to any independent
contractor that you paid $600 to during 2004. For example, if
you paid a designer $1,500 to build and maintain a website in
2004 for your business, a 1099-MISC filing would be required. As
with practically any IRS filing, there are additional situations
that require a 1099 filing [ex: any fishing boat proceeds], so
make sure you cover your bases by looking at the relevant
instructions. Generally, you are not required to report payments
to a corporation.
When and What Must Be Filed?
The 1099-MISC form is a multi-layered carbon form, so make sure
the information you provide appears clearly on all of the
copies. Once you have filled out the form, you must provide Copy
B to the person that you are reporting to the IRS by January 31,
2005. Using our previous example, you would mail Copy B to your
website designer before the end of January.
Copy A of the 1099-MISC form is intended for the IRS. You are
required to file it by February 28, 2005 if you are sending the
form by mail. If you prefer to file electronically, you have
until March 31, 2005 to file the form.
Revealing a particular flair for red tape, the IRS requires you
to file an additional form if you are filing Copy A of the
1099-MISC by mail. In such a situation, you must file an "Annual
Summary and Transmittal of U.S. Information Returns" form. This
summary is better known as Form 1096 and you should have already
received a copy of it in the mail from the IRS.
Where To Find These Forms
To the surprise of many people, the IRS has an excellent website
containing information and tax forms. Unfortunately, the site is
fairly useless when it comes to obtaining tax forms that you can
actually file. You cannot download and use any 1099 form from
the website. If you try to print forms from the site and use
them, you run into two problems. First, the IRS computers will
not be able to read the forms and will reject them. Second, it
is doubtful that you will be printing on multi-layered carbon
paper, which means you will have no Copy B of the 1099.
Obviously, either situation can attract unwanted attention from
the IRS.
You can order forms from the IRS by calling 1-800-tax-form or
ordering them off of the IRS website [do not download]. The IRS
suggests it typically takes at least two weeks for the forms to
be delivered, but keep in mind that it may take longer. If you
need the forms sooner, you usually can find them at libraries
and post offices.
About the author:
Richard Chapo is CEO of Business Tax
Recovery - Obtaining tax refunds for small
businesses by finding overlooked tax deductions and credits
through a free tax return review.
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