Information Returns

Thanks for sharing this!

Information, please! That’s what the Internal Revenue Service wants from you if you own a business and make a payment or payments of $600 or more to another person in the course of your business over a calendar year.

Generally, you’ll use Forms 1096 and 1099 to report amounts you pay for services provided to your business by independent contractors. Interest, dividend and rent payments also fall within the reporting rules.

Some exceptions apply. For instance, you don’t have to report payments to corporations, or amounts you paid for merchandise, office supplies, and similar items.

In addition, the reporting requirements are for payments made in the course of your business, so if you make a personal payment, say to a physician for health care, no 1099 is required.

For 2009, paper copies of Forms 1096 and 1099 are due to the IRS by March 2. If you file electronically, the forms are due March 31.

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