When Are 1099-MISC Forms Due
1099 forms are IRS documents. They are known as information tax returns. You do not have to pay any money with them. Instead, they simply tell the IRS what you paid to who during the year. The "who" is generally an independent contractor of some form or another for the purposes of this article, to wit, the 1099-MISC form.
Filling out the form is a fairly simple process. You just total up your payments over the tax year to the various people that you paid, enter their business information and the amount. You need to put together one form for each contractor. You also need to make sure you use the correct form of the…well, form. It must be a three piece carbon copy because the IRS computers read the information. In practical terms, this means you cannot print it off your computer. You can usually find the form at local post offices and libraries. If you are feeling brave, you can head down to the local IRS office as well.
So, when do these forms have to be filed? Well, there are two dates. Hey, we are talking about taxes here! Actually, there is a good reason. You must send one copy of the 1099-MISC to each independent contractor no later than January 31st. You then must send the IRS copy to the agency by February 28.
So, why the different dates? The one month lag has a purpose. It gives the contractor the time to check their records and make sure your number is accurate. If you underreport what you pay them, they are supposed to call you and report as much. Have fun waiting for that call! If you over report what you paid them, they will definitely call. Why? The IRS uses the forms to determine if the contractor is reporting all their revenues.
1099 forms are fairly simple to get out the door. The biggest problem you will run into is finding the forms. Lots of people have to send them out, so there can be a real rush on them. The IRS offices are almost always picked over, but libraries seem to have them in stock. Regardless, try to get them as soon as possible to avoid any problems.
Related Tags: tax, season, taxes, independent, contractor, forms, january, due, 1099, misc, february
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