Form 1099-MISC 101
Posted by Tax Man - 05/12/08 at 01:12 pmForm 1099-MISC 101
If you have independent contractors or freelancers working for you, you must be aware of issuing them with 1099 forms that are promulgated by the Internal Revenue Service or the IRS. 1099 forms are issued to these individuals you have paid more than $600 to in a single calendar year.
Form 1099-MISC 101
When filing a 1099-MISC form, which is a multi-layered carbon form, make sure that you have clear copies of all since you will be providing one copy for the IRS and one for the person who has worked for you. Once the forms have been filled out, you need to provide a copy to the freelancer who has worked for you by the end of January. If you are sending the form by mail, you will need to file it with the IRS by the end of February, and until March 31st if filing it electronically.
In addition to filing this 1099 form, you will also need to file a one-page 1096 form which is known as the “Annual Summary and Transmittal of US Information Returns” form. Both the 1099 and 1096 forms cannot be downloaded off the IRS website as you will need the original and official multi-layer carbon physical forms. These forms can be sent to you by the IRS through mail, ordered off their site or through calling them. You can also get these forms from major post offices or libraries. Should you fail to file these forms, you will be penalized by the IRS with $50 per form.
