E-file 1099-MISC Forms online
What is Form 1099-MISC?
Form 1099 Miscellaneous is an IRS tax form that is used to report payments made to contractor by a business entity. Payments reported on 1099-MISC forms can include rent, royalty, prizes and awards and substitute payments in lieu of dividends. A 1099-MISC form for a contractor is the same as a
W-2 form for an employee
. The form reports the total amount paid by the business to an individual during the course of a business or trade. Personal payments are not reported.
Businesses must file this form for each person to whom they have paid during the year. A business must provide a statement to the recipient to whom the payment is made. A business must also file this form with the IRS either electronically or on paper.
Generally payments made to corporations are not reported on this form. But there are some exceptions to this rule. Medical and healthcare payments, attorneys’ fees, etc. must be reported on this form. Employees business expenses reimbursements are not reported on this form. Generally payments made to employees are reported on Form W-2. Generally payments to general contractors are reported in box 7.
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Who needs to file Form 1099-MISC?
All businesses that are operating for the purpose of making a gain or profit need to file this form, if they meet any of the conditions below. Nonprofit organizations, trusts, cooperatives, federal, state, or local government agencies are also required to report payments.
When is this form filed?
A business is required to file if they:
Paid more than $10 in royalties, or brokerage payment, or tax-exempt interest
Paid at least $600 in rents, services, prizes and awards, other income payments, medical and health care payments
Paid at least $600 to an attorney
Made direct sales of at least $5000 of consumer products
Withheld any federal income tax under the backup withholding rules
What is the deadline to file Form 1099-MISC?
The deadline to file this form with the IRS is end of February if filing on paper. If filing electronically then the deadline is end of March. However, the deadline to provide recipient copy is end of January.
for more information on deadline.
What is the penalty for failure to file Form 1099-MISC?
IRS imposes heavy penalties if a business fails to file or fails to file correct information. There is penalty for not providing recipient copies. The penalty increases with time. So even if you have not filed your form in time, we encourage you to file as soon as possible.
for more information of penalties.
About Form W-2
About Form 1099-INT
About Form 1099-DIV
About Form 1099-B
About Form 1099-C
About Form 1099-R
About Form 1099-S
About Form 1098
About Form 1098-T
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