The thrill of New Years has barely worn off, yet it is already time to get back to the grindstone. In this case, we are talking about tax season. The issue? Any 1099-MISC filings need to go out in the mail soon.
What is the 1099-MISC tax form? It is what is known as an IRS information return form. Being a tax form, there are a ton of situations where it is or isn't filed. In general, you need to prepare and file the form for any independent contractor you paid $600 or more to for a business purpose during the tax year in question. Consider an example.
It was a rough business year. In hopes of digging up some business, I paid my 17 year old neighbor to build a website for my business. He did a smash up job and I am happy with the website. If I paid him $500 for it, I do not need to file a 1099-MISC form because it doesn't meet the $600 threshold. If I paid him $1,000, the opposite is true and I have to do the filing. This is true for anyone you paid over $600 during the year, but not for most corporations you paid.
So, when do you have to file these things? Well, the first deadline is February 1, 2010. I'll wait while your recover from your fainting episode because it is going to get better. Ready? You can't download the form from the web. It is a triple carbon copy form like they used to use in the old movies. This means you need to get out and hustle about town to find the form. A local IRS office will have one, but try not to meet anybody eye to eye if you know what I mean. Alternatively, most central libraries have the form as well. If worse comes to worse, you can order the form from the IRS but you will have to pay for it.
Is there any good news? Yes. The February 1st deadline is only for the copy that goes to the independent contractor. The version that is filed with the IRS isn't due till March 1st. I'll wait while you take a deep sigh of relief! Now get moving and get those forms filed!
Richard A. Chapo writes for BusinessTaxRecovery.com where you can learn more about IRS debt forgiveness
and how to go about getting it.