The widely known information return is also called as the 1099 tax designation. These information returns are collected to monitor each revenue paid. Filling them out is quite simple.
Basically, this form is where you can track your revenues paid to another person for the requested tax year. For example, you would have to issue a 1099-MISC of $1,200 per year for getting the services of a lawn mower at $100 per month. IRS uses this strategy to prove that the lawn mower reported all his earning for the year.
In filling up this tax designation, you must first know the right format. There are various types of 1099 forms and when filling out, be sure to have the MISC version. There are printable versions of this form in the internet but none of them will be honored. The forms will later be scanned through special IRS computers so you really need to get the official copy. The official copies are distributed in big libraries, major post and IRS offices. To make sure you didn’t get the wrong copy, you to the nearest IRS Office to ask some. Another hassle-way free of getting a copy is ordering one online from the IRS website.
Preparing the form is way easier than you think it is. One tip is to print your own copy of the form so in case you make a mistake, you don’t have to throw the official copy. The next thing to do is add up all the payments you made to the requested person. One form is only for one person and f you are reporting for several people, get different forms for each of them.
Write your name on the top left box of the form. Then you have to fill up your general information including your name/business name, phone number, email address and address. Then, write down your tax identification number in the space provided for it. Then write the tax identification of the person you are issuing the form for at the box in the right side. Then, write the address of that person at the bottom of the two boxes together with his name.
The next thing you do is enter the total amount in dollars. The boxes running vertically n the middle of the form may have to be filled up by some. The box that appears first is the “1 Rents” field. If you are reporting for a paid rental, you may write it here. If you are reporting for a basic fee for the services rendered to you in the year requested, use box 7. This one is for the “nonemployee compensation.” Use this field if you don’t know that classification of your report as this is the mostly used field.
Once you’re done, you may send it and get another hard copy of it together with form 1069 or the cover sheet for your form.