| January starts off with a blissful anticipation of a | | | | fish. Yes. As in fish you eat. No, you don't have to |
| glorious new year. It quickly turns into a panic as you | | | | report your sushi chef. It is only for monies you pay |
| try to get your finances in order so you can issue | | | | directly to the person who caught the fish. And the |
| 1099-MISC tax forms. Ah, but who do you have issue | | | | government wonders why people hate dealing with |
| them to? | | | | taxes! |
| The 1099-MISC tax form is an informational tax return | | | | 3. Another fascinating oddity is the sale of consumer |
| of sorts. It tells the IRS who you paid certain monies to | | | | products to a buyer by you. If you sell more than |
| during the year. Ostensibly, this information is used to | | | | $5,000 worth of consumer product to a buyer who is |
| see if the people you report on are reporting the | | | | reselling them, then you have to report him or her. Ah, |
| correct amounts of money paid to them. In reality, this | | | | but there is more. This only has to be done if the buyer |
| process results in tens of millions of 1099-MISC being | | | | does not have a permanent retail establishment. |
| filed and they are really only looked at if a party is | | | | Confused yet? |
| audited. Still, you have to issue them. | | | | 4. Attorneys take it in the kisser when it comes to |
| Since we are talking about a tax issue, you know it | | | | 1099-MISC filings. You must report any gross proceeds |
| isn't going to be simple and straightforward and it is not. | | | | you paid to an attorney during the year. There is no |
| The rules for who you report on break down along the | | | | $600 minimum. |
| lines of what profession they are in, how much you | | | | 5. The Secret Spy Reporting Requirement. You have |
| paid them and just a few bizarre requirements. Let's | | | | to love the IRS. Why? Well, you are also required to |
| take a look. | | | | file a 1099-MISC for any payments you make to an |
| 1. In general, you must report on any independent | | | | INFORMANT(!). If you are doing it as a government |
| contractor you paid $600 or more during the year for | | | | employee, you do not have to file the 1099-MISC. |
| services rendered. This is the most common category | | | | Most people think of the 1099-MISC tax form as a |
| that people run into. If you paid someone $600 to | | | | simple required document if you made payments to |
| create a brochure for your business, you file a | | | | independent contractors. As you can see, it is much |
| 1099-MISC. | | | | more. The above represent only a small sampling of |
| 2. On the weird end of the scale, we have the fish | | | | when you must file the form. There are also |
| issue. For some reason that I am sure makes sense if | | | | requirements if you received a prize, award, certain |
| you drink enough vodka, you must report anyone to | | | | scholarships and so on. Make sure to speak with a |
| whom you paid more than $600 to during the year for | | | | CPA in your area if you are concerned. |