2010 1099-MISC Forms For Independent Contractors Due Soon
Now that you’ve recovered from New Years, it is time to get ready for…tax season! The deadline for 1099-MISC forms for independent contractors is coming soon.
You’ve probably been hearing a lot about a new hellish requirement regarding 1099 reporting. The healthcare law overhaul included a new provision that states that basically anyone you pay $600 or more to each year will result in a requirement you issue a 1099 for them. That includes…your local grocery store and the like. It will be madness. Fortunately, the new law doesn’t take effect till 2012, so you get a break this year.
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1099-MISC Forms for independent contractors are informational returns. They help the IRS track who is getting paid, what they are getting paid and whether the numbers they report match up with the 1099s. With this in mind, it is vital that you not print and file 1099s from the IRS website. These returns are scanned, so you have to use approved forms that you can order or pickup from your local post office or IRS office.
So, when are these tax forms due? The first filing deadline is January 31, 2011. You must have the form delivered to the person you are issuing it to by this date. Copy B of the form should be sent. If you are reporting money paid to an attorney, the date is extended to February 14. Lucky you. Copy A of the form must then be filed with the IRS by February 28, 2011. You can file this copy electronically and, if you do so, have until March 31, 2011.
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Why are these dates staggered? The reason has to do with verification. The IRS wants the 1099-MISC recipients to have a chance to look at what you are reporting and raise any objections with you before the IRS starts contemplating the information being reported. This allows any difference in numbers to be resolved in most cases and saves the IRS from reprocessing information over and over.
Finally, make sure you follow the IRS red tape when filing. You can’t file just a 1099-MISC Form. No, you need to file Form 1096 as well. What is it? A short IRS form telling the IRS you are filing Form 1099. Seem redundant? It is. Welcome to the world of tax in the United States!