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1099 Reporting | Tax Tip of the Week | No. 77 January 26, 2011

Posted by bradstreetblogger in : Tax Tip, Taxes, Uncategorized , trackback

Simplified Summary of 1099-MISC Filing Requirements

If you are engaged in a trade or business, you should issue a Form 1099-MISC to qualified recipients to whom you paid more than $600 during 2010 by January 31, 2011.  The reporting of Forms 1099-MISC that you issue are reported to the IRS along with Form 1096, and are due by February 28, 2011.  Generally speaking, individual taxpayers are not required to issue Form(s) 1099-MISC.

A qualified recipient is defined as any noncorporate entity.  This means any individual sole proprietorship, partnership or limited liability company (LLC).  You are required to issue Form(s) 1099-MISC to attorneys regardless of their entity type.

Examples of payments you have made that might require a 1099-MISC to be issued would be:
– rental payments for land or equipment
– attorney fees
– payments made for subcontract labor
– commissions
– royalties (a 1099-MISC is required when payments exceed $10)

This is a simplified summary of 1099-MISC filing requirements.  There are many other instances where these forms should be issued.

A rule of thumb to use is– if you plan to treat such payments as a business expense, you better issue a Form 1099-MISC!

This area always creates a lot of questions among our clients.  Give us a call if you have any questions.

Note:  See TTW #48 regarding the Form 1099 filing requirements for next year.  Unless Congress acts, next year truly will be a 1099 Nightmare!

We’ll keep you posted.

You can contact us in Dayton at 937-436-3133 and in Xenia at 937-372-3504.  Or visit our website.

Rick Prewitt – the guy behind TTW

…until next week.


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2. bradstreetblogger - January 29, 2013


Yes we are on Twitter, couple of ways to follow our posts, one is @Bradstreet_CPAs, another is you can follow my Twitter feed for additional tax & accounting news at @lancebradstreet. Thank you for your viewership, it is appreciated!

Lance Bradstreet

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