Wednesday, January 11, 2012

Sending 1099MISC

New questions this year, though sending 1099MISC is not new.

Schedule E for rentals:

Schedule C for self-employed businesses:

Please click on the link above to see a sample copy of the 2011 Schedule E for rental properties. As you can see, the very first two questions on the form ask, "Did you make any payments in 2011 that would require you to file Form(s) 1099?(see instructions)" and "If “Yes,” did you or will you file all required Forms 1099?" Schedule C's questions are on lines I and J. Farms too are required to answer similar questions.

Forms 1099MIsc are required to be filed for any unincorporated service providers to whom you paid $600 or more in 2011. This includes, but not limited to gardeners, repairmen, property managers, cleaners, accountants and bookkeepers. For businesses, you may also have to send a 1099Misc to your landlord, unless you pay rent to a property manager or the landlord is a corporation other than an LLC.

For a sample of the Form 1099Misc, please see Instructions for 1099Misc are at The forms are due the service providers January 31, 2012. Failure to file Forms 1099misc could result in penalties of up to $200 for each form that is required, but not filed.

If you need to file these Forms 1099misc, you may want to visit this web site for a list of approved IRS business providers. This may be your least expensive option.,,id=101242,00.html

For schedules C, E and F filers, you may want to obtain a federal employer tax ID number from the IRS so you don't have to release your SSN to your service providers. See,,id=98350,00.html

Also, you should give your service providers a W-9 form to get his/her tax ID, either a social security number or an FEIN (federal employer tax ID number): There is no need to use the service providers' SSN if the service provider has an FEIN. Of course, if the service provider is a partnership, all you can get is the partnership's FEIN.

Forms 1099misc are also required for any trade or business operating in the form of a partnership, trust, or corporation, including non profit organizations.