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Basic 1099 Filing Requirements

Form 1099-NEC for the following payment types:

  • Services performed by independent contractors or others – not employees of your business (formerly box 7 of Form 1099-MISC)

 

Form 1099-MISC for the following payment types:

  • Rent (Box 1)
  • Royalties, (Box 2), $10 or more in royalties (or broker payments in lieu of dividends or tax-exempt interest)
  • Other Income such as Prizes and awards (see IRS Instructions for Form 1099-MISC, Box 3)
  • Backup withholding or federal income tax withheld (Box 4)
  • Crewmembers of your fishing boat (Box 5)
  • To physicians, physicians’ corporation, or other suppliers of health and medical services (Box 6)
  • Substitute dividends or tax-exempt interest payments and you are a broker (Box 8)
  • Crop insurance proceeds (Box 9)
  • Gross proceeds of $600 or more paid to an attorney (Box 10)

 

Form 1099-A, Acquisition or Abandonment of Secured Property

Form 1099-B, Proceeds from Broker and Barter Exchange Transactions

Form 1099-C, Cancellation of Debt

Form 1099-CAP, Changes in Corporate Control and Capital Structure

Form 1099-DIV for Dividends or other distributions to a company shareholder

Form 1099-G, Certain Government Payments

Form 1099-INT for Interest on a business debt to someone (excluding interest on an obligation issued by an individual)

Form 1099-K for Payments to merchants or other entities in settlement of reportable payment transactions, that is, any payment card or third-party network transaction

Form 1099-LTC, Long Term Care and Accelerated Death Benefits

Form 1099-OID, Original Issue Discount

Form 1099-PATR, Taxable Distributions Received from Cooperatives

Form 1099-Q, Payments from Qualified Education Programs

Form 1099-R for Distribution from a retirement or profit plan or from an IRA or insurance contract

Form 1099-S, Proceeds from Real Estate Transactions

Form 1099-SA, Distributions From an HSA, Archer MSA, or Medicare Advantage MSA

 

You are NOT required to file information return(s) if any of the following situations apply:

  • You are not engaged in a trade or
  • You are engaged in a trade or business and
  • the payment was made to another business that is incorporated and was not for medical or legal services (Do file 1099-MISC for payments to a Partnership, LLC (unincorporated LLC), LLP, sole proprietor, individual and corporations for medical and legal services) or
  • the sum of all payments made to the person or unincorporated business is less than $600 in one tax year

 

Due dates:

1099-NEC forms are due to recipients and IRS by February 1, 2021. For all other payments reported on other 1099’s, file by February 28, 2021.

 

Information needed to file 1099-MISC:

  • Your entity’s legal name, address, tax ID #, phone # and contact name.
  • Each payee’s name, address, tax ID#, total paid in calendar year, category of

 

IRS Form W-9 is used to request payee legal name, tax ID # and entity type. Provide this IRS form to every vendor / payee you are going to or did make a payment to. Payors are required to backup up withhold Federal Income Tax (at 24% when a payee does not provide a TIN). Retain completed W-9 forms in your record. See attached W-9.


Posted on December 15, 2020 at 12:46 PM