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Tips for 1099 paper filing

June 6th, 2013 No comments

This article lists and discusses tips for 1099 paper filing. If you have any tip that is not listed here, please add your comments below to this article.  We are always eager to hear about any new 1099 paper filing tips.

DON’T

1. Do not buy the forms (unless your really pushed for time). The red-ink forms are free.  You can order by phone by calling 800-TAX-FORM.  There is no charge for calling, shipping or handling and the IRS will ship up too 100 forms per call.

2. Do not photocopy Copy A or download the forms from the internet and try to print Copy A and mail them in.  The red-ink Copy A forms have a special red-ink.  Even if you have a color printer and print Copy A in red colored ink, its not the same kind of red-ink that the IRS uses to create the form.  Consequently, the forms will not scan and will be rejected.  You have to get the official red-ink forms from the IRS.

3. Do not cut or separate Copy A of the forms. Form 1098, for example, has 3 Form 1098 records for one sheet of paper.  For Copy B, you can cut these individual records and distribute to the payee’s. But for Copy A, don’t cut the form at all.  Leave it whole.

4. Do not staple, tear, tape or fold any forms. Prepare Copy A for each 1099 and their corresponding 1096.  Send the Copy A forms along with the 1096 to the IRS in a flat mailing.  Staples, tape or anything else will interfere with the IRS scanners.

5. Do not submit any copy to the IRS except Copy A.  Do not submit Copy B or C to the IRS.

6. Do not use prior year forms unless you are reporting prior year data.  If you are filing for tax year 2011, don’t find a 2010 tax year form and scratch out “2010” and write 2011 at the top and mail even if there were no changes in the forms from one year to another.

7. Do not use dollar signs ($), ampersands (&), asterisks (*), commas, or other special characters in the money amount boxes. Don’t write 0 or “zero” or “none” in a money amount box when no entry is required.

8. Do not use apostrophes (‘), asterisks (*) or other special characters on the payee name.

DO

1. Handwritten forms are acceptable. Write neatly!  Everything you write must be completely legible and accurate.  Use black ink and block print (no script characters).

2. You can type on the forms as well.

3. Keep a copy of your information returns you filed with the IRS or have the ability to reconstruct the data for at lesat 3 years, 4 years for Form 1099-C.

4. Remove the pinfeed holes before mailing.  The official forms that the IRS mails you has a perforated edge with a multiple of pinfeed holes on that edge.  Remove the edge, then mail.

5. File on time.  You can request a 30-day time extension online for paper and electronic filing.  It will automatically be granted.  But you have to file for the extension before the due date and this just gives you an extension for mailing Copy A to the IRS.  You still need to get Copy B to the payee by the end of January.

6. Know your recipient. How well do you know the person you hired to do some miscellaneous work around the house?  Know enough so that you can accurately fill out these 1099 forms at the end of the year.  When its the middle of the summer and you pay someone $600 or more for miscellaneous contract work, your not thinking about taxes and information returns that are due in January. Know enough about your recipient so that your not scrambling in January for their mailing address and TIN.

If you have any tips, please let us know.  Add them below.

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