If you’re a larger business, the tax filing season can be a stressful time of year. You have many forms to deliver and need to make sure everything is completed accurately.
For companies that pay additional compensation apart from typical wages or salary payments, a 1099 form is required in order to report income to the IRS. Apart from employees and nonemployees, other company payments also require reporting specific details via 1099.
Keep reading to learn more about the specific reporting requirements of the 1099-MISC.
1099-MISC Reporting Requirements
Box 1: Rental payments, including equipment, property, real estate, or vehicles might be reported here.
Box 3: Awards and prizes not directly related to services, or other income payments, such as punitive damages.
Box 6: Any payments made to doctors, suppliers, or providers of any medical services. This could include physical exams, lab work, hospital fees and charges, and other services.
Box 7: Professional fees for services provided by engineers, accountants, attorneys, and so on, or services such as repairs, landscaping, marketing, and so on. This includes nonemployee compensation, as well as any prizes awarded to those nonemployees in exchange for their services.
Box 14: If you are involved in a legal settlement and have made payments to an attorney, the service fees are usually reported here.
Ensure accuracy with bulk e-filing.
Once you’ve figured out which 1099 forms you need to deliver and there is a large number of them, a bulk uploading service is your best bet. An efficient e-filing service will help you to ensure that your information is accurate, and help to prevent any penalties or inaccuracies.
Your e-filing and mailing delivery options
Since the IRS requires form recipients to consent to electronic delivery (and if no consent is given, they must receive a paper form), eFile360 offers this e-delivery service. When you select the e-delivery service option, recipients receive an email with secure login details to access their forms. Automatic paper statements are sent in the mail if the recipient does not access their forms electronically.
Do you know which forms you need?
Apart from the 1099-MISC, the most common information return form, we also file 1099-INT, 1099-DIV, 1099-C, 1099-S, 1099-B, 1099-R, 1098, 1098-T, 1098-MA, W-2, 1095-B, and 1095-C.
Whether forms are e-delivered or sent through the mail, for delivering 1099-MISC forms to contractors and recipients, the deadline is January 31 of the current tax year (and forms must also be postmarked by that date). eFile360 accepts 1099-MISC forms until January 31st at 5 PM. Read more about reporting deadlines.
eFile360 provides a robust system that allows you to move through tax season smoothly and efficiently. If you’re interested in learning more about how our services can help your business, feel free to chat with us.