How To File A Form 1099-MISC For Your Business

05 Jun

The Internal Revenue Service uses the form 1099-MISC to trach miscellaneous income in a business.  If you are a small business owner, the IRS uses this form to track all payments that you made to independent contractors.  An independent contractor is anyone you hire to do a service for you on contract.

An independent contractor that you pay includes someone like a web designer or a copy writer. If you hired and independent contractor in that particular year, that is the only time you need to file a form 1099-MISC.  You should not file a form 1099-MISC for your employee, they have a wage file for themselves so do not misclassify your employees for there is a penalty.

The easiest way to file a 1099-MISC is through the online channel.  Normally, the site will guide you through the process of filing your returns.  To file the 1099-MISC form, the first step that you take is to gather all the needed information. All the details that are needed include the amount you paid the contractor, the contractor's legal name and address as well the tax identification number. You can have the contractor fill out a W-9 in order to get the needed information.  Go through your account books thoroughly to make sure all info is correct.

When filling a form 1099-MISC, there are two copies which are copies A and B. The copy that you submit to the IRS is copy A while the independent contractor should receive the copy B.  If you are physically submitting a form 1099-MISC then fill out a 1096 form because it is a necessity for the IRS. The other requirement is that you put the state in which your business is located. Make sure that you hit the deadlines since if you are late then there is a penalty that comes with late filing of returns. Be sure to check out this website at and know more about tax.

Filing returns physically and online differs a little when you are filling the form 1099-MISC. In order to complete the whole filing process, you need a FIRE system to do so.  That is the way you fill out the copy A of the form 1099-MISC then mail it to the IRS.  Make sure to email the copy B to the independent contractor. Know more on How To File A Form 1099-MISC.

You need to ask for consent from the contractor before you even email the form 1099-MISC.  This is done in a systematic way where you have first to ask for consent through email to show the IRS.  You have to comply with the IRS rules and have all the requirements when sending the email.  The contractor then responds and gives you the consent and you can now send the copy B of the form 1099-MISC. Read more on How To File A 1099-MISC Form.

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