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.

You might also like these posts

Article – Preparing for Hurricane Season The Atlantic hurricane season begins June 1. While the 2014 season is expected to be a mild one, mild doesn’t mean storm-free. Getting ready early...
Article — Locked Out What’s on your computer? Your manuscripts? Work? Photos? What would you do if you were denied access to those files—if you were locked out by rogu...
Article — Tax Identity Theft Awareness Week Taxes are scary enough, without adding tax identity theft to the mix. The costs—$3.6 billion a year according to an estimate by the US Treasury In...

We write. Visit us in Carpenter Country, a magical place that, like our stories, is unreal but not untrue.

Tagged with: ,