What Everybody Ought to Know About 2010 1099 Forms
2010 1099 Form Fact # 1
2010 1099 Forms are due to recipients (contractors in the case of 2010 1099 MISC) by January 31, 2011. You can use 1099 Software to file 1099 forms.
2010 1099 Form Fact # 2
2010 1099’s are due to the IRS (Internal Revenue Service) by February 28, 2011. This is the case if you file on paper.
2010 1099 Form Fact # 3
2010 1099 form is due to the IRS by March 31, 2011 if you file electronically.
2010 1099 Form Fact # 4
You are required to file 1099 forms electronically to the IRS if you file 250 or more of each type of 2010 1099 forms. For example if you are required to file 150 2010 1099 MISC and 120 2010 INT then you are NOT required to file electronically. If you have to file 249 1099 MISC, you do NOT have to file electronically. If you have to file 260 1099 MISC for 2010 and 15 1099-INT for 2010 then you have to e-file 2010 1099 MISC with the IRS and you do NOT have to e-File the 2010 1099 INT.
2010 1099 Form Fact # 5
You can NOT issue a 2010 1099 form to an employee. You need to issue a 2010 W2 form to your employee.To create 1099 forms you can use software for that type of form, for example you can use 1099-DIV software to print and e-File 1099-DIV forms.
2010 1099 Form Fact # 6
If you E-File 1099 forms with the IRS for 2010 you do NOT have to print and email 2010 1096 to the IRS.
2010 1099 Form Fact # 7
The most common 2010 1099 form is 2010 1099 MISC. Other 2010 forms include: 1098, 1098-C, 1098-E, 1098-T, 1099-A, 1099-B, 1099-C, 1099-CAP, 1099-DIV, 1099-G, 1099-H, 1099-INT, 1099-LTC, 1099-OID, 1099-PATR, 1099-Q, 1099-R, 1099-S, 1099-SA, 3921, 3922, 5498, 5498-ESA, 5498-SA and W-2G.
2010 1099 Form Fact # 8
The best place to find information about 1099 forms is www.IRS.Gov .
2010 1099 Form Fact # 9
2010 1099 forms such as 2010 1099 MISC you download from the IRS website can’t be used to actual reporting and they can’t be sent to recipients or filed with the IRS. A penalty of $50 per 1099 form may be imposed on the filer for filing forms that cannot be scanned by the IRS scanners or do not follow the IRS guidelines for forms to recipients. Businesses use professional software to create and print 1099s: 1099-INT software to prepare Interest Income form, 1099-MISC Software to print Miscellaneous Income forms and so on.
2010 1099 Form Fact # 10
If 1099 form printing is supported by a tax or accounting software, then any standard 2010 1099 form will work with that software. This means you don’t have to buy expensive 1099 forms from the tax software vendor. For example if you use QuickBooks you don’t have to buy QuickBooks 2010 1099 forms form QuickBooks store, the same applies to Peachtree 1099 forms, MAS 90 1099 forms, Microsoft Dynamics GP 1099 forms and so on.
2010 1099 Form Fact # 11
If you filed a 2010 1099 form with the IRS (such as 2010 1099 MISC) and later discover you made an error on that form, you must correct what filed as soon as possible. This includes filing 1099 Copy A and Form 1096 for 2010 with IRS (Internal Revenue Service) and you MUST send the corrected 1099 form to the recipient.
2010 1099 Form Fact # 12
Before you prepare the 1099 form you will need to obtain a correct identification number (SSN for individual and EIN for companies) from the recipient. If you don’t already have that ID you can send the recipient a W-9 form to fill out and send back to you.
2010 1099 Fact # 13
The Average time it takes to fill out a 1099-MISC for 2010 is about 16 minutes. For 2010 1099-INT is 13 minutes and for 1099-DIV the time is almost 18 minutes. It’s very clear from these numbers that you can save a lot of time and effort by using a 1099 software to fill out 2010 1099s.
2010 1099 Form Fact # 14
Emailing and Faxing 1099 forms: Contrary to common belief that you have to send 1099 forms by mail, the IRS allows you to send 2010 1099 forms to recipients electronically. This includes sending the 1099s to recipients of forms 1098, 1098-E, 1098-T, 1099-A, 1099-B, 1099-C, 1099-CAP, 2010 1099-DIV, 1099-H, 2010 1099-INT, 1099-G, 1099-LTC, 2010 1099-MISC, 1099-OID, 1099-PATR, 1099-Q, 2010 1099-R, 1099-S, 1099-SA, 3921, 3922, 5498, 5498-ESA, and 5498-SA. Unfortunately you can’t send 1099 forms by Fax.
2010 1099 Form Fact # 15
Where to mail 1099 forms for tax year 2010:
(1) If your business is in Alabama, Arizona, Arkansas, Connecticut, Delaware, Florida, Georgia, Kentucky, Louisiana, Maine, Massachusetts, Mississippi, New Hampshire, New Jersey, New Mexico, New York, North Carolina, Ohio, Pennsylvania, Rhode Island, Texas, Vermont, Virginia, West Virginia then mail 2010 1099 to Department of the Treasury Internal Revenue Service Center Austin, TX 73301.
(2)If your business is in Alaska, California, Colorado, District of Columbia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Maryland, Michigan, Minnesota, Missouri, Montana, Nebraska, Nevada, North Dakota, Oklahoma, Oregon, South Carolina, South Dakota, Tennessee, Utah, Washington, Wisconsin, Wyoming then mail your 2010 1099 tax forms to Department of the Treasury Internal Revenue Service Center Kansas City, MO 64999.
2010 1099 Form Fact # 16
Can you type forms 1099 2010 by hand? The shorts answer is Yes, but you need to be very careful and the forms must be completely legible and accurate to avoid processing errors and IRS fines. It’s highly recommended to use a 1099 MISC software instead, which will save you a lot of headache and help you avoid penalties and delays.
2010 1099 Form Fact # 17
Can you print 2010 1099 forms that you send to recipients on regular white paper or you have to buy special forms. You can actually print 1099 forms on regular white paper as long as the 1099 software you use complies with the IRS regulations for substitute 1099 forms for 2010.
2010 1099 Form Fact # 18
If you fail to send 2010 1099s to recipients by the due date then there is a 1099 penalty of $50 per 1099 form with a maximum of $100,000 per year.
2010 1099 Form Fact # 19
One common question that gets asked by businesses is the color of the 1099 form. The simple answer is this: the red 2010 1099 is the one you send to the IRS and the black and white is the one you send to the 1099 recipient.You can refer to the general 1099 rules and regulations on the IRS website for more info.
2010 1099 Form Fact # 20
Where do I start when I want to create 2010 1099s? The best place to start is by reading the 2010 1099 instructions available from the IRS website. You can also contact a 1099 software vendor and they should be able to help you prepare your 2010 1099 forms.
2010 1099 Form Fact # 21
If the recipient (1099 payee) fails to send you his or her Tax ID then backup withholding at the rate of 28% is applicable (rate as of tax year 2010).
2010 1099 Form Fact # 22
When you fill out a 2010 1099 do not enter 0, zero, None, Empty, N/A in money amount boxes when no entry is required.
2010 1099 Form Fact # 23
Do not send any 1099 copy other than 2010 1099 Copy A to the IRS.
2010 1099 Form Fact # 24
The following states have 2010 1099 reporting requirements: Alabama, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Georgia, Hawaii, Idaho, Indiana, Kansas, Kentucky, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, New Jersey, New Mexico, North Carolina, North Dakota, Ohio, Oklahoma, Pennsylvania, Rhode Island, South Carolina, Utah, Vermont, Virginia, West Virginia, and Wisconsin.
2010 1099 Form Fact # 25
The IRS does not automatically forward 1099 forms you file in 2010 to the state. If you file electronically and your state participates in the Combined Federal/State Filing Program and you ALSO participate in the program, then the IRS will forward 2010 1099s filed electronically to participating states.