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Posts Tagged ‘1099 form’

Where can I get a blank 1099-MISC form for free?

November 17th, 2013 No comments

There are lots of places where you can get blank, red-ink 1099 forms. I get my tax forms from my local library.  If they don’t have the forms on hand, just ask your librarian.  They can easily attain more and quickly.

Your local post office might have the red-ink forms on hand as well but I have never had success with my local post office.

You can order the forms are free by calling the IRS at 1-800-TAX-FORM or 1-800-829-3676.  The forms are free and shipping is free and you receive the forms within a few days. Don’t forget to order form 1096 which is the summary transmittal.

You can download the 1099-MISC form here

www.irs.gov/pub/irs-pdf/f1099msc.pdf

But its important to remember that the online forms are for informational purposes only.  You can not use them to actually file a 1099 form.  The red-ink forms are scanned by the IRS.  Even if you could print the forms in a red-ink, the official forms use a special red-ink for scanning purposes.  The red-ink that your printer uses is not the same kind of red-ink that the IRS uses to create the 1099 forms.

 

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IRS 1099-MISC Form For Contract Workers

November 10th, 2013 No comments

Contract workers, or freelancers, are workers who are hired on a project-by-project basis.  The IRS 1099-MISC form is used by employers to document the earnings of contract workers.

More and more businesses are hiring contract workers because their costs are generally lower than W-2 employee costs.

This is because contract workers’ earnings do not require deductions of social security, income and state tax, unemployment, health insurance, or any other type of deferred compensation.  Contractors are required to calculate any tax deductions and pay any taxes owed to the IRS on their own.

At the end of the tax year, the 1099-MISC form is sent by employers to any contractors hired during the year, and it is also submitted to the IRS for income tracking purposes.

Some examples of workers that would receive a 1099 form at the end of the tax year include freelance writers, artists, contract IT specialists, temporary laborers, and more.

Form 1099-MISC is a 5 page form where Copy A is sent to the IRS, Copy B is given to the payee or recipient and Copy C is retained by the filer or payer.  Copy A has the look and feel of  a normal sheet of paper while the other copies are almost like tissue paper. The 5-pages are connected together by a perforated edge.

The IRS requires that Copy A be submitted on their special paper with red ink if you are submitting less than 250 filings a year.  Otherwise, the IRS encourages you to submit electronically. Filing Information Returns electronically is very cost-effective, is easier than filing on paper, and is more accurate. Filing status is available within 2 business days for Forms 1098, 1099 and W2-G and electronic filers receive a later due date for most returns. When you file electronically, you are exempt from using pre-printed forms.  You can just print the Copy B on plain paper with black ink, email a PDF file to all recipients, fax Copy B to the recipients or just print it out and hand it to the recipient.

The 1099-MISC form is the most popular form to report contract worker earnings.  The other variations of the 1099 form are used to show interest and other types of earnings.

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What do I do if my employer hasn’t sent me my 1099 form yet?

June 3rd, 2013 No comments

Copy B of most of the 1098, 1099, 3921, 3922 Forms must be distributed to the receipient by the end of January (31st).  Sometimes the due date falls on the 1st or 2nd of February, but the end of January is a good date to remember.  Forms 1099-B, 1099-S and 1099-MISC (boxes 8 and 14 only) are due by February 15.

Copy B can be mailed to the recepient, e-mailed, faxed or just plain handed to them.

What happens if you work with someone or do business with someone and they don’t provide a 1099 form?  I hear this question often.

One thing you can do is call that respective business or individual.  On a personal note, every year I should receive IRS Form 1099-INT (Interest Income) from my local bank for interest earned from one of my accounts.  The account earns more than $10 in interest per year which is the threshold for sending out the 1099-INT form.  In the past (before 2008), I always received Form 1099-INT on time.  Now I receive nothing.  I use to call and get the run around. But eventually, I found someone at the bank and they just gave me the information over the phone.  I could have also attained the total from reading each quarterly statement but I wanted to make sure I had the same total interest that the bank had. Businesses are struggling right now and sometimes a phone call will get you the information you want.

You can also call the IRS.  The IRS number is 800-829-1040.  You will need to provide your name, address, SSN number and phone number.  You will also need the contact information of the business or individual you are expecting a 1099 form from.

Not receiving a 1099 form on time is what the IRS calls “Failure to Furnish Correct Payee Statements (Section 6722)”.  Try doing a search for that phrase on any search engine and you will quickly find this:

“If you fail to provide correct payee statements and you cannot show reasonable
cause, you may be subject to a penalty. The penalty applies if you fail to  provide the statement by January 31 (February 15 for Forms 1099-B, 1099-S, and 1099-MISC (boxes 8 and 14 only)) (see part M), you fail to include all information required to be shown on the statement, or you include incorrect information on the statement.”

Once you see the penalties associated with the failure to provide Copy B on time or failure to provide a correct payee statement, you can understand that calling that business or individual directly is a kinder way of getting the data.

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When Should You Submit 1099 Forms?

June 3rd, 2013 2 comments

1099 forms are a type of information return that record different types of taxable income. The Internal Revenue Service requires 1099 forms to be submitted before the end of the tax year to both the IRS and the payment recipient(s). 1099 forms are used to report non-wage payments, or payments that are not considered W-2 wages, and several other types of payments and income.

There are several circumstances in which a person or business should submit a 1099 form to the IRS and payee. The 1099-MISC form covers many types of payment while other variants cover other specific types of payments that the 1099-MISC does not.

For most payments that the 1099-MISC form covers, the minimum amount necessitating reporting is $600 or more. However, there are exceptions including any substitute dividends, royalty payments, and tax-exempt interest that are more than $10. Any payment to attorneys, members of a fishing boat crew, or payee subject to backup withholding must be reported on a 1099-MISC form. If a person or business has paid a doctor, accountant, or other professional $600 or more for consultation or services, they should submit a 1099-MISC form to both the service provider and the IRS.

Some of the other payments that require a variant of the 1099 form include any interest income, distributions from IRA and pension plans, distributions from medical and health savings accounts, barter exchanges, and others. Since there are a wide variety of payments that require a 1099 form submission, it is best to call the IRS or check their website whenever there is a question about whether or not a 1099 form should be submitted.

Any payment to a freelancer or contractor that is more than $600 must be reported with a 1099 form. A potentially difficult part of the process of information reporting is determining whether a hired worker is considered by the IRS an employee or contractor. In the case that the worker qualifies as an employee, a W-2 form would be submitted to the employee and IRS. If there is a doubt, an IRS Form SS-8 may be submitted in order to receive an official decision by the IRS on the classification of the worker.

As a general rule, 1099 forms must be submitted to the taxpayer by January 31st, and to the IRS by February 28th. The form may be submitted to the IRS electronically to save time.  If a business or individual has 250 or more 1099 payees in one calendar year, the forms must be submitted electronically to the IRS.

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