If you are making payments in the course of your trade or business, then filing the form 1099-MISC is required. Nonprofit organizations, trusts of qualified pensions or profit sharing plans of employers, payments by government agencies, and a few others are also considered to be engaged in a trade or business.
The above entities are required to file a 1099-MISC when they have paid:
This form is also used to report that you made direct sales of at least $5,000 of consumer products to a buyer for resale anywhere other than a permanent retail establishment and for each person from whom you have withheld any federal income tax under the backup withholding rules regardless of the amount of the payment.
As the case usually is with the majority of tax-related items, there are some exceptions to these rules. The form 1099-MISC is not required for the following payments:
In most cases, you are required to furnish a copy to the payee by January 31, 2015 for the 2014 tax year. Filing with the government is required by March 2, 2015, or March 31, 2015 if you are filing electronically. When you file the 1099, a summary form, Form 1096, is required to be filed with your 1099’s.
The above summary may not cover your specific situation. If you have any questions, please call one of our team members.
For another blog post about 1099 forms, check out:
1 Reason Why Small Business Owners Need to Think About 1099 Forms
This blog was co-authored by Andrea McManamon:
Andrea McManamon is a Manager in the Assurance Services Group with over fifteen years of experience in public accounting. Andrea’s experience comes from working with a wide variety of clients in various industries such as manufacturing, distribution, communications and not-for profit organizations.