"2005 Irs Tax Forms"
FORM 1099-MISC Miscellaneous Income In accordance with IRS regulations, we are required to report payments of $600 or more made to non- incorporated companies, partnerships, or individuals for rents or services (including parts and materials, if those parts and materials are incidental to completing the service) during a calendar year. The requirement extends to gross proceeds paid to an attorney. This information is sent to the IRS on FORM 1099-MISC (Miscellaneous Income). Locations are also required to report certain information to the California EDD on Form 542 (refer to the section “Form 542 - EDD Reporting Requirements” for a complete explanation of what is required by the EDD). IRS Reporting Requirements The Diocese of San Diego is a corporate entity. As such, we are required to report the payments noted above to the IRS on an aggregate basis - that is, the sum of all payments made by all parishes, schools, and other diocesan organizations (locations) to an individual or a company are combined and reported to the IRS on one FORM 1099-MISC. We therefore ask each location to report information about ALL payments made to non-incorporated companies, partnerships or individuals for services during a calendar year even if the payments for your location are less than $600. Once the finance office receives the information from all the locations, it combines the information, validates it, and issues 1099s for companies/individuals that were paid a total of $600 or more from all locations. Effective January 2005, this information is required to be reported to the diocese on-line by the deadline (which is generally the end of the first week of the calendar year). Proper planning is therefore crucial. When your location hires an individual or company to perform services, you should FIRST have them fill out a W-9, Request for Taxpayer Identification Number (TIN) and Certification. This form should be kept on file at the location and will be used at year-end when the location submits the information to the Diocese. Form W-9 can be downloaded from the IRS website. We’ve also posted copy of form W-9 on the diocesan website - in the finance section The IRS is permitted by law to assess a penalty for forms that are filed which are incomplete or do not include the proper information. They are also permitted to assess a penalty for forms that are filed late. We therefore stress the importance of obtaining the necessary information up front, before the individual/company performs any services or receives any payments, to avoid problems at year- end. Effective January 2006, a penalty will be levied on a location for forms that are filed late or with incomplete information. A penalty may also be charged for forms filed with incorrect information, unless the location had the vendor fill out a W-9 and the vendor provided incorrect information. Diocese of San Diego – Office for Finance April 2005