There are numerous 1099 forms that can be issued at year end. We are only addressing the most common form, which is form 1099-MISC, as well as the most common payments reported, which are rents and subcontractors payments. According to our resources, 1099 audits are on the rise so please make sure you file these important forms! The deadline for delivery to recipients of Form 1099-MISC is January 31, 2011. The deadline for Form 1096 and Copy A of the 1099-MISC is February 28, 2011.
All vendors, except corporations, paid $600 or more for services and/or rent should be issued a 1099-MISC.
Attorneys should be issued a 1099-MISC for any and all payments made to them, regardless of the dollar amount.
It simplifies the year-end process if you submit a Form W-9 to all vendors during the year to receive confirmation of their federal ID number and the type of entity before issuing them payment. If you do not have a Form W-9 from these vendors the IRS could consider you an employer of this vendor which would make you liable for taxes to be withheld and remitted at 28%. Find Form W-9 at www.irs.gov/pub/irs-pdf/fw9.pdf.
Unless Congress repeals this ugly little rule in 2011 starting in 2012 payments you make for services or products of $600 or more to any business including corporations will require a Form 1099 to be filed. So within your Office Supply category if you purchase $675 from Office Depot and $750 from Office Max and $680 from Staples. Each one will need a Form 1099 whereas this year and in 2011 you wouldn’t need to send one at all.