IRS Form 1099s
are Due Soon
Generally Forms 1099 must be prepared and given to the recipients of certain payments by January 31, 2012. All Forms 1099 must be mailed to the IRS with a Form 1096 no later than February 28, 2012. Following are examples of payments made “in the course of your trade or business” that you should review in considering whether you have an obligation to file a Form 1099:
Accounting Fees Interest
Commissions Rent (unless paid to a rental agency)
Contract Labor Repairs & Maintenance Services
Director’s Fee Royalties ($10 or more)
Attorney Fees & Legal Services Medical/Health Care Services
With the exception of attorney fees and medical/health care service payments you do not need to include payments to corporations. With the exception of royalties and gross settlements to attorneys only payments aggregating $600 or more for the year, require a Form 1099.
Penalties for failure to file can range from $30 to $100 for each Form 1099 that is not timely filed, that fails to include all information, or that includes incorrect information. There is a $100 fine for each Form 1099 that is not provided to the payee. An additional penalty (up to $1,500,000) is incurred for intentional disregard of the requirements to provide statements to payees.
If you would like us to prepare your 1099s, please provide us with the name, address, and Social Security or federal ID number of the person or business paid and the amount paid. If the recipient is a sole proprietor, the owner’s full name must be used instead of the business name. A form for providing us with this information is included (below) for your use. If you have any questions or need assistance with the preparation and filing of these forms, please contact Rhonda Anderson.
Form 1099 Information
PAYER’S
NAME_______________________________________________________
PAYER’S
ADDRESS____________________________________________________
PAYER’S SOCIAL SECURITY OR FEDERAL
ID#___________________________
COMPLETE
FOR EACH VENDOR TO WHOM YOU PAID QUALIFYING PAYMENTS IN 2011.
ADDRESS______________________________________________________________________
CITY/STATE___________________________________________________________________
PURPOSE OF
PAYMENT_________________________________________________________
AMOUNT: $____________________________________
ADDRESS______________________________________________________________________
CITY/STATE___________________________________________________________________
PURPOSE OF PAYMENT_________________________________________________________
AMOUNT:
$____________________________________
ADDRESS______________________________________________________________________
CITY/STATE___________________________________________________________________
PURPOSE OF
PAYMENT_________________________________________________________
AMOUNT: $____________________________________
ADDRESS______________________________________________________________________
CITY/STATE___________________________________________________________________
PURPOSE OF
PAYMENT_________________________________________________________
AMOUNT:
$____________________________________
ADDRESS______________________________________________________________________
CITY/STATE___________________________________________________________________
PURPOSE OF
PAYMENT_________________________________________________________
AMOUNT:
$____________________________________