FORM 1099 MISC FOR FILING INCOME PAYMENTS
Form 1099 misc is usually used for filing payments which are made during a business- or trade- course. It does not matter whether you are in a business, or you are self employed, you will have to submit 1099 misc form. This you will be submitting both to the individual or the business concerned, and to the Internal Revenue Service (IRS).
Individuals, vendors, independent contractors, and sub- contractors will have to submit form 1099 misc when amount that equals to or exceeds six hundred USD is payed for services, crop insurance proceeds, attorney payments, payments made to fishermen, medical and health care payments, rents, and the like that are not covered by some other document reporting information. Furthermore, when payments for brokers or royalty payments is equal to or more than ten USD, in lieu of dividends or tax exempts, form 1099 misc has to be submitted. Only when the recipient of the above mentioned payments is a corporation, the reporting of the above mentioned payments via form 1099 misc is not essential. Otherwise, they are a must.
If you fail to submit your filled form 1099 misc online or offline within the assigned deadline, you will have to face penalties. The same holds true for any other tax filing document such as the form 1098 online or offline. The stipulated deadline for form 1099 misc for the previous calendar year is 31st January. E-file for business 1099 should be done before 31st March.
In preparation to take this report, you should ask your payment recipients such as vendors, contractors, etc to submit the form w-9 to you. This form will bear details such as the name, address, tax payer identification number, etc of your recipients. These details will be necessary when you fill the form 1099 misc.