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1099-MISC Forms For Independent Contractors for 2005

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					Title:
1099-MISC Forms For Independent Contractors for 2005

Word Count:
426

Summary:
As we begin 2005, you’re probably not thinking about taxes at all. This
is a mistake as deadlines are approaching for issuing and filing 1099s to
independent contractors.


Keywords:
1099, misc, independent contractors, irs, taxes, penalty, 1099s, 1096


Article Body:
As we begin 2005, you’re probably not thinking about taxes at all. This
is a mistake as deadlines are approaching for issuing and filing 1099s to
independent contractors.

What is a 1099 MISC?

Generally speaking, the IRS requires you to report certain payments you
made during the year to independent contractors. The 1099-MISC form is a
single page on which you report to total amount you paid to the
independent contractor during 2005.

The 1099-MISC forms must be issued to any person you paid at least $600
in rents, services or other income payments. For example, if you hired a
contractor to renovate a room in your home and paid them $5,000, a 1099-
MISC filing would be required. As with practically any IRS filing, there
are additional situations that require a 1099 filing. Any payments to
attorneys must be reported regardless of the amount. Royalties totaling
over $10 also must be reported. Generally, you are not required to report
payments to a corporation.

When and What Must Be Filed?

The 1099-MISC form is a multi-layered carbon form, so make sure the
information you provide appears clearly on all of the copies. Once you
fill out the form, provide Copy B to the person you are reporting to the
IRS by January 31, 2005.

Copy A of the 1099-MISC form is intended for the IRS. You must file it by
February 28, 2005 if you are sending the form by mail. If you prefer to
file electronically, you have until March 31, 2005.

The IRS has made a major effort to cut down on red tape, but you’ll still
find it with 1099-MISC filings. In addition to filing the 1099 with the
IRS, you must also file a 1096 form. The 1096 form is the “Annual Summary
and Transmittal of U.S. Information Returns” form. It is one page and
extremely easy to fill out.
Although the IRS has an excellent web site, you can’t download 1099 forms
off of it. The official forms are still multi-layered carbon paper, which
means you need to get a physical copy. The IRS should send you the forms
in the mail. If they don’t, you can order them off the IRS site or call
the IRS to have them sent to you. If all else fails, you can usually find
the forms at major post office and public library locations. If you fail
to file 1099s, the IRS will penalize you $50 per 1099.

More than a few people have grumbled about filling out 1099s so early in
the year, but doing so has indirect benefits. You are forced to start
organizing your records for 2005.

				
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posted:2/19/2010
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