January starts off with a blissful anticipation of a glorious New Year. It quickly turns into a panic as you try to get your finances in order so you can issue 1099 MISC tax forms. It tells the IRS who you paid certain monies to throughout the year. The ‘1099 MISC’ tax form is an informational tax return of sorts. Ostensibly, so this information is used to see if the people you report on are reporting the correct amounts of money paid to them. Therefore, in reality, with that said, this process results in tens of millions of 1099MISC being filed and they are really only looked at if a party is audited. Furthermore, you know it is not going to be simple and straightforward and So it’s not, since we are talking about a tax issue. The rules for who you report on break down along the lines of what profession they are in, how much you paid them and just a few bizarre requirements. You must report on any independent contractor you paid $ 600 or more throughout the year for services rendered.
This is the most common category that people run into.
It is only for monies you pay directly to the person who caught the fish. No, you don’t necessarily ought to report your sushi chef. For instance, on the weird end of the scale, we have the fish issue. For some reason that I am sure makes sense if you drink enough vodka, you must report anyone to whom you paid more than $ 600 to in the course of the year for fish. Just think for a moment. As in fish you eat. If you sell more than $ 5000 consumer worth product to a buyer who is reselling them, therefore you have to report him or her. Look, there’s more. This only has to be done if the buyer does not have a permanent retail establishment.
Another fascinating oddity is the sale of consumer products to a buyer by you.
Attorneys take it in the kisser wheneverit gets to 1099MISC filings.
You must report any gross proceeds you paid to an attorney in the course of the year. The Secret Spy Reporting Requirement. Well, you are also required to file a 1099 MISC for any payments you make to a INFORMANT. Besides, you have to love the IRS. So here is a question. Why?
Most people think of the 1099MISC tax form as an easy required document if you made payments to independent contractors.