Preparing the 1099 Forms
Posted by Tax Man - 05/12/08 at 01:12 amPreparing the 1099 Forms
The IRS issues various forms, one of which is the 1099 form which is considered as an informational form. The 1099 form is collected by the IRS so that they can track revenues that have been paid to independent contractors or freelancers.
The form 1099-MISC is also known as the independent contractor form. It informs the IRS of how much you have paid a freelancer in a certain tax year in question. This only applies to those independent contractors who have been paid more than $600 during a calendar year. For example, if you paid a technician or plumber $200 every 2 months, then you would need to issue them and the IRS with a 1099-MISC form assuming that these individuals are not part of a corporation. These forms are used by the Internal Revenue Service to ensure that these individuals report the money that they made during the year.
Preparing the 1099 Forms
Be prepared when filing 1099 forms. Since there are a variety of these, make sure that you have the MISC version. You will have to have a hard copy of the form and not just a printed version as this has to be readable by IRS computers. These forms are usually available at IRS offices, post offices, or libraries. Another option is to order the form from the IRS online, though this may take quite a while to be delivered. Each independent contractor must be issued one 1099 form each. Each contractor must receive their copy by the end of January, while the IRS must receive the form by the end of February.
