What is a 1099-MISC?
- A form typically used by business entities and self-employed individuals to report payments made to an independent contractor or vendor for services rendered.
Who should receive a 1099-MISC?
- Each independent contractor or vendor that you have paid at least $10 in royalties to or broker payments in lieu of dividends or tax exempt interest;
- Each independent contractor or vendor that you have paid an aggregate of $600 or more to in rents, services (including parts and materials), prizes and awards, other income payments, etc;
- Any fishing boat proceeds;
- Aggregate gross proceeds of $600 or more paid to an attorney during the year (regardless of whether or not the law firm is a professional corporation), or;
- Any individual from whom you withheld any federal income tax under the backup withholding rules regardless of the amount of the payment.
Who else must receive a 1099-MISC?
- A copy of every 1099 MISC you send to a vendor must also be sent to the IRS.
What are the deadlines?
- January 31 all 1099s must be postmarked to the recipients.
- February 28 all 1099s must be filed with the IRS (IRS allows 1 month to correct any errors on the 1099s before they receive the data).