Form 1099-MISC asks for your company’s name, street address, city, state, country, ZIP code and telephone number. You’re required to provide a phone number that directly reaches someone who can answer questions about the form.
Recipient’s Identification Number
The recipient’s identification number can be a social security number (SSN), individual taxpayer identification number (ITIN), or employer identification number (EIN). Make sure that you put the hyphens in the correct place, if you’re filing by paper. SSN and ITIN should be in the format of XXX-XX-XXXX, and EIN should be in the format of XX-XXXXXXX.
What if the Recipient Won’t Supply Their Identification Number?
When you first hire an independent contractor, ask them to fill out Form W-9 to provide you with their tax identification number and contact information.
If the contractor has already started work for you but refuses to provide you with their identification number , begin backup withholdings (a flat 28% rate) immediately and make at least three attempts to retrieve the contractor’s identification number (to avoid a penalty for failing to include an identification number on the 1099-MISC).
To send the backup withholding payment, complete and file Form 945 by February 1, 2018.
The IRS requires an account number, if you’re filing multiple forms for one recipient, but they recommend that you include an account number for all forms you’re filing to ensure that any future or corrected forms are processed correctly.
The account number can be a checking or savings account number, serial number, policy number, or any other number you assign to the recipient. The account number must be unique and cannot be elsewhere on the form (i.e. the account number can’t be the recipient’s identification number).
If you’re reporting funds paid to an independent contractor, you’ll enter the total amount paid during the year in Box 7, Nonemployee Compensation.
You can consider funds to be nonemployee compensation if you made a payment
In Box 16, put any state income tax you withheld; in Box 17, put your state’s abbreviation and your state identification number; and in Box 18, enter the amount paid to the recipient in the state.
If you’re filing Forms 1099-MISC by paper, you’re required to file Form 1096 with the Forms 1099-MISC.
When you’re completing Form 1096, put the number of forms you’re filing in Box 3. For example, if you’re mailing 10 Forms 1099-MISC, you’ll write “10”. You’ll write the total amount reported on all the Forms 1099-MISC you’re filing in Box 5.
If you’re electronically filing your Forms 1099-MISC, don’t file Form 1096 because the IRS will receive the information automatically.
When to File
If you’re entering an amount in Box 7 on your 1099-MISC forms, the forms are due by January 31 of the following year.
If you’re not entering an amount in Box 7, you have until February 28 to file by paper and March 31 to file electronically.
You must provide the recipient with a copy of the 1099-MISC by February 15.
If any of these dates fall on a weekend of federal holiday, you have until the next business day to file.
Penalties for Filing Late
There are penalties for filing your Forms 1099-MISC late:
Time Returns Filed/Furnished
Penalty for Small Businesses (Gross Receipts of $5 million or less)
Not more than 30 days late (or by March 30 if due date is February 28)