Yes, that's right, just around the corner! I know that its not even Thanksgiving and the actual IRS deadline to mail form 1099-MISC to the recipient for the tax year ended 2011 is January 31, 2012. (The deadline to file Form 1096 to the IRS is February 29, 2012) Months away, true, but in my experience it is the one deadline that sneaks up and suprises me every year. There is a lot going on between now and January 31st...reconciling the g/l accounts, tax planning, budgeting and switching files over. Of course, there are the holidays, which mean short weeks & office parties...and, of course, the cookies! Plenty of distraction making it easy to put off thoughts of 1099's until after the first of the year. But a little preparation will make sure your not scrambling to meet that deadline come January 31st.
- Order your forms now - There is no time like the present! The beauty of ordering now is that you still have time to order and receive forms directly from the IRS saving yourself the time and cost of buying them from the office supply store.
- Brush up on the rules - Generally, you are required to issue Form 1099 MISC to individuals and partnerships to whom you paid rent or services totalling $600 in the calendar year. The most common receipients are listed below, but you can find a complete list and dollar limits on the IRS website here.
- Attorney, fees and gross proceeds
- Commissions, nonemployee
- Compensation, nonemployee
- Directors' fees
- Mileage, nonemployee
- Nonemployee compensation
- Rental Expense
- Royalties
- Make sure you have all your W-9's on file - Go though your supplier list and make sure that you have a Form W-9 on file for each vendor. Cross check the company name, address and FID with your accounting records. Mail out W-9's to any new suppliers as soon as possible so you have all the information you need on file.
Take these steps to begin preparing now and make sure you enjoy those delicious holiday cookies!
