For those of you who have contracted work out to other people or partnerships and have paid those people or partnerships $600 or more in the past year, it is soon the time to report that to the IRS and to remind the subcontractors that the payments they received are taxable. The same is true if you have paid rent to an individual or partnership of more than $600 throughout the year. The time to issue Form 1099 MISC is fast approaching.
The due date for Form 1099MISC is February 28, 2011 (if you are typing and mailing paper copies), or March 31, 2011, if filing electronically. And to this end–filing electronically–there is a very nifty site, at FileTaxes.com, that will do the mailing to the recipients and the ultimate electronic filing to the IRS. And all for a mere $3.99 per recipient–which is tax deductible since you are filing for a business.
You need the following information:
- your name,
- your address,
- your social security #,
- recipient’s name,
- recipient’s address,
- recipient’s social security #,
- amount paid to the subcontractor will be entered into Box 7 (Non-employee Compensation); rents go into Box 1
- you also must enter an “account number” (not optional; you can make one up or use one you already have if you assign #’s to your subcontractors within your accounting system).
If you go into FileTaxes.com with the above listed information, you should be in and out a very, very short amount of time. And best of all? The site will send you an email verifying that your 1099’s have been sent to the IRS.
Disclosure: we have no business relationship to FileTaxes.com, except that we use their service.
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