 |
|
ab |
|
|
|
|
Deadlines For Issuing And Filing 1099s Are Approaching
|
|
 |
|
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 in the course of your trade or business. by
Richard Chapo
Contributing Author
| |
 |
|
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.
(article continued below ...)
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 http://www.businesstaxrecovery.com - Obtaining
tax refunds for small businesses by finding overlooked tax deductions and
credits through a free tax return review. He can be reached at
richard@businesstaxrecovery.com.
January 18, 2005
|
| ab |
|
|
