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General Filing Requirements and Information for Form 1099

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The following is presented for informational purposes and is not all-inclusive.

 

COMMON PAYMENTS REPORTED ON INFORMATION RETURNS

Generally, payments made to corporations and tax-exempt organizations are not reportable; however, payments to corporations for legal services, and medical and health care payments are reportable on Form 1099-MISC.

Form 1099-MISC

Report miscellaneous income for each person to whom you have in the course of your trade or business:

  • Paid at least $600 in rents, services (including parts, materials and sales tax), prizes and awards, other income payments, and medical and health care payments.
  • Paid attorneys’ fees (including a law firm or other provider of legal services) of $600 or more.
  • Paid at least $10 in royalties.
  • Withheld any federal income tax under the backup withholding rules regardless of the amount of the payment.
  • Also report:  If you have made direct sales of at least $5,000 of consumer products to a buyer for resale other than a permanent retail establishment.

Form 1099-INT

Report interest income, for each person to whom you:

  • Paid interest of at least $10.
  • Withheld and paid any foreign tax on interest.
  • Withheld any federal income tax under the backup withholding rules regardless of the amount of the payment.

Form 1099-DIV

Report dividends and distributions, for each person to whom you have:

  • Paid dividends (including capital gain dividends) and other distributions on stock of $10 or more.
  • Paid $600 or more as part of a liquidation.
  • Withheld and paid any foreign tax on dividends and other distributions on stock.
  • Withheld any federal income tax under the backup withholding rules.

Form 1099-R

Report distributions from pensions, annuities, retirement or profit sharing plans, IRAs, insurance contracts, etc. for each person to whom you have made a designated distribution of:

  • $10 or more including direct rollovers.

Form 1098 (Mortgage Interest Statement)

  • Report interest payments received of $600 or more (if engaged in a trade or business).  Individuals holding the mortgage on a former residence are not required to file.
  • Report points paid if the points plus mortgage interest is $600 or more.

Form 1042-S 

Report amounts paid to foreign persons for the following (but not limited to):

  • Corporate distributions
  • Interest
  • Rents
  • Royalties
  • Compensation for independent personal services performed in the US
  • Annuities
  • Pension distributions and other deferred income

Payments made to Brock, Schechter & Polakoff, LLP are reportable on Form 1099-MISC as we are a partnership.

DUE DATES

Form 1099 is due to the recipient by January 31st.

  • Except Form 1099-MISC for limited reporting, boxes 8 and 14, 1099-B – broker statements, and 1099-S – real estate transactions, are due to the recipient by February 15th.

Form 1099 and Form 1096 (transmittal) are due to the government by February 28th.

  • Except Form 1099-MISC reporting non-employee compensation, box 7, is due to the government by January 31st.

Each type of 1099 needs to have a separate 1096 transmittal form.  They can be mailed together to the IRS.

Form 1042-S is due to both the recipient and to the government by March 15th.

Non-US payers have the same filing requirements for payments made to US persons or entities.

Form W9 is used to obtain an EIN or SSN which is required to be reported on Form 1099 for payments made during the year.

PENALTY PROVISION

Penalties ranging from $100 to $500 per return are established for failure to file correct information returns by the due date, failure to furnish correct payee statements and intentional disregard of payee statement requirements.

INCOME TAX WITHHOLDING

Backup income tax withholding of 28 percent may be required for persons who failed to provide the payer with their identification numbers and in certain other circumstances.