On April 14, 2011, President Obama signed the long-awaited repeal of the new 1099 reporting requirements. A minor provision in the new healthcare law, the new requirements would have included corporations and vendors of both services and tangible goods in the 1099 reporting net. While it was intended to be a major revenue-raiser for Washington, the requirements would have meant an unmanageable avalanche of paperwork for the nation’s small business owners.
It’s a Tax Day miracle! Both sides of the aisle managed to cooperate long enough to accomplish something for small business … finally!
Deb Howard Greenleaf, EA, CEO and Principal, of Greenleaf Accounting Services provides virtual accounting and bookkeeping services and specializes in financial management to consultants, coaches, solo professionals, and other small business owners across the US. Deb is an Enrolled Agent (EA)—an IRS-licensed tax professional—and specializes in small businesses and entrepreneurs filing Schedule C or as an LLC. As an Advanced Certified QuickBooks ProAdvisor, Deb spends her day in QuickBooks Online and specializes in providing QBO support.
I’m new to this…
What are the 1099 reporting requirements or where can I go to find out? How do I know who to issue a 1099 to by looking at a W-9?
A quick answer is to visit irs.gov and search for 1099. There is loads of information on that site!
You need to send a 1099 to any service provider to whom you paid $600 or more in a calendar year, unless that service provider is a corporation. The W-9 form gives you the information necessary to complete the 1099 and will also let you know if that service provider is a corporation or not.
Brian Greenwood says
I see so many conflicting statements on this. On IRS they give instructions on how to send a 1099 to a corporation. Is this only applicable to single owner corporations?
I also read on ehow that for 2011 in order to claim rent, you have to send a 1099 to your landlord…
What is fact here?
The fact that a business should be reporting rent payments to the landlord using a 1099-MISC at year-end is not new.
There are certain situations when you do need to report payments to corporations via a 1099 form. One situation that comes to mind is payment to attorneys for legal services are not exempt when paid to corporations.
As in all things, you should refer to the source for fact: http://www.irs.gov This is a blog intended for general information and should not be considered specific tax advice for any given reader.
I’ve seen several references to the following: “You need to send a 1099 to any service provider to whom you paid $600 or more in a calendar year, unless that service provider is a corporation.” 1st question: What is the definition of a “service provider”? 2nd Question: If I sell a used item on consignment for a private individual and said private individual is not a businesses or “service providers”, would I then be required to also send them (and the IRS) a 1099? I’m confused!
frankie cunes says
Hey ! I am thankful for the analysis . Does someone know where my business would be able to get ahold of a fillable URL – IRS 1099-MISC form to edit ?
At IRS.gov, you can download fillable PDF forms of most tax forms, including the 1099-MISC. Just look for Forms & Publications.
Hellen Hilson says
Hi ! my partner acquired a sample URL – IRS 1099-MISC version here http://goo.gl/WTcl1H
Thanks for the link, Hellen!
I actually have a few more sources for blank PDF forms, including an app that will make the process of sending out W-9 forms to your clients crazy easy and a few sites where you can file your 1099 forms online. They are listed in my free download called the “1099 Success Cheat Sheet” … check it out on my website at https://www.greenleafaccounting.com 🙂