1099 Season is Here - What You Need To Do
It’s almost January, and that means Form 1099 season. Companies big and small are about to start churning them out and you can’t afford to ignore them. If you’re in business, that is you file a Schedule C, E, F, Form 1065, Form 1120 or Form 1120S, you need to pay attention to issuing them or face penalties . New in 2011 to all federal business tax returns was a box asking whether any payments were made during the year that would require Form 1099 to be filed and a box asking whether or not you filed all required Forms 1099. By asking the two questions prominently on the return, the IRS isn't only reminding taxpayers of their obligations but also setting a snare for taxpayers that habitually violate the law. If a taxpayer answers "no" and an audit shows he should have sent the forms, the answers could be evidence in favor of higher penalties. So what are my Form 1099 obligations? You need to send a Form 1099 to all service provider...