Didn't Get An Expected 1099-MISC Form?
The 1099-MISC form is misunderstood by most people. It is not a tax return per se. Instead, it is what is known as an information return. The IRS essentially uses it to track how much revenue an independent contractor pulls in from clients.
A party that pays $600 or more to an independent contractor must file one of the forms with the IRS. There are exceptions to this $600 figure, but this is the general rule. A person issuing the form must send it out to the contractor by the end of the day on January 31st. They then must file the same form with the IRS by the end of February. If you receive a 1099-MISC form, you don't need to do anything with it other than check to make sure the payments reported are accurate. Ah, but what if you do not receive the form?
First off, many people forget to file the form. Since it is an information return, they just don't get around to it or it slips their mind. There is a penalty for failure to file the form with contractors and the IRS, but it is under $100. In short, not enough of a fine to motivate people. If you failed to receive the form, the party in question is probably not "up to" anything. Furthermore, you do NOT file the 1099-MISC forms you receive with your tax returns, so it is not a critical problem for your own tax return preparation.
If you fail to receive a 1099-MISC form, you still have to report the revenue earned from that business. The fact it was not reported to the IRS does not mean you get a free break. Sorry. You are responsible for reporting all of your revenues regardless of where they came from and whether they were reported to the IRS or not by a third party. You should be able to look at your books and determine how much you were paid from each customer.
Ultimately, the 1099-MISC form stresses out more people than it should. It is a necessary form, but the IRS is not going to be breaking down anyone's door for 1099-MISC problems. If you didn't get all the forms you were expecting, just figure out your total revenues and go from there.
Related Tags: tax, taxes, revenues, form, tax return, 1099, misc, independent contractor
Richard A. Chapo is with BusinessTaxRecovery.com - providing free tax tips.Your Article Search Directory : Find in Articles
Recent articles in this category:
- Guide To Finding The Right Irs Debt Help Solution For Your Situation
Finding the right IRS debt help for your situation is crucial. Where you turn for assistance will de
- The Basic Function Of Accounting
Accounting is a profession as old as the hills. It was a well known practice in the Roman, Ancient E
- The Fundamental Concepts Of Accounting
The Federal Election was held in Australia on 21st of August 2010. During the rather boring election
- Higher Earners Warned Over Tax Relief
Those that fall into the higher earners bracket have been warned that the government may impose furt
- Procter & Gamble Wins R&d Credit Case Against The Irs
On June 25, 2010, the U.S. District Court in Procter & Gamble Co. and Subsidiaries (P&G) v. United S
- 3 Ways To Settle Irs Tax Debt For Less
You can settle IRS tax debt for less if you know your options. There are several ways that you can s
- Five Steps To Finding The Best Tax Lead Company For Your Business
The lead buying business has become an efficient and proven form of outsourcing marketing efforts to
- Truly Effective International Tax Advice
A big concern for the public and corporate business units is to deal with the international tax at t
- How To Avoid Making The Common Tax And Bookkeeping Mistakes?
Even though who consider themselves in the financial loop may fall prey to some of the most common t
- How To Appeal Your Property Tax Bill
The responsible homeowner will want to do a thorough check of their property tax bill to ensure they
Most viewed articles in this category:
- New Tax Rules for the Poor
New tax rules for 2007 will bring about a good year for the poorest of tax-filers in Maryland. Tax-f
- The Best LEGAL Tax Shelter in the World-- Your Home-Based Business!
Welcome to the best legal tax shelter in the world-- you home-based business! As long as you keep go
- Income Tax Questions Answered Because of Radio - The World Is a Client of "Better Business"
Having hosted a financial radio program over several years has exposed me to many questions. Some of
- IRS Alert: Tax Payers Need to be on the Look out for Fraud
Tax-Definition.org (http://www.tax-definition.org) is reporting on the second part of the tax
- Figuring Out Your Tax Return Filing Status
When you are ready to plop down and start preparing that tax return, one of the first questions is y
- Lost Last Year's Tax Return?
It happens every year. Just when you get motivated to get rolling on your taxes, you realize you can
- IRS Is Focusing on Schedule C Filers
In the last few tax years IRS has been paying more attention to taxpayers who file a schedule C. The
- 2007 Brings Tax Relief for N.Y. Residents
As of January 1, 2007, New York residents have been benefiting from a decrease in hospital bills, an
- Energy Efficient Home Tax Credits
Under the Energy Policy Act of 2005 you can get a tax credit if you installed energy efficient win
- Taxes: How To Dramatically Reduce Your Taxes With One Simple Step
How to Make It, Keep It, Protect It. Did you know the federal government may keep up to 65.9% of eve