Remember, however, that a 1099-MISC need be filed only when an independent contractor’s services are performed in the course of your trade or business. If you’re a broker who employs independent contractor agents, you need to file 1099s for them, as well as any other contractor you paid at least $600 during the year. The basic rule is that you must file a 1099-MISC whenever you pay an unincorporated independent contractor - that is, an independent contractor who is a sole proprietor or member of a partnership or LLC - $600 or more in a year for work done in the course of your trade or business. This is part of the IRS’s ongoing effort to prevent businesses from failing to report all their income. These new questions are an attempt by the IRS to persuade businesses to file all required 1099s, particularly Form 1099-MISC, the form used to report payments to independent contractors. The same question was added to Schedule E for IRS Form 1040 in 2011. Corporation Income Tax Return and Form 1120S, U.S. Return of Partnership Income Form 1120, U.S. Similar questions have been added to IRS Form 1065, U.S. If you answer yes, you have to answer in Line J whether you have already filed, “or will you file,” the forms. Two new lines have been added to the beginning of Schedule C, labeled “I” and “J.” Line I asks whether you made any payments during the year that required you to file IRS Forms 1099. If, like most real estate pros, you’re a sole proprietor, you must file Schedule C with your return to report your business income and expenses, and show whether you have a net profit or loss for the year.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |