1099 Filing Requirements

When the IRS finalized its tax forms for the year 2011, they included two new questions on business tax returns (including Forms 1120, 1120S, 1065 and 1040 Schedules C, E and F.) Both of the following questions will again appear on the 2012 tax forms.

1. Did you make any payments in 2012 that would require you to file Form(s) 1099?
2. If "Yes," did you or will you file all required Forms 1099?

Tax returns are signed under penalties of perjury, so it is important to accurately answer these questions. For this reason, taxpayers should timely file all required Forms 1099.

What is a Form 1099?

Generally, a Form 1099 information report is filed with the IRS and sent to the recipient for certain payments made during the calendar year. The most common type of Form 1099 filed by a business is Form 1099-MISC, which reports amounts such as rents and nonemployee compensation. The rules and thresholds for issuing Forms 1099 vary depending on the recipient, amount and type of payment.

Forms 1099 must be received by the recipient no later than January 31, 2013 for payments made in 2012. Those 2012 Forms 1099 must be filed with the IRS by February 28, 2013, if paper filed.

Tax Filing Update

The IRS will start accepting and processing some individual income tax returns beginning January 30, 2013. This delayed date includes both electronic and paper returns. The IRS estimates that remaining individuals will be able to start filing in late February or into March. This group includes those claiming residential energy credits, depreciation of property or general business credits. A complete listing of the forms that won't be accepted until later is available on IRS.gov.

For questions, assistance, or requests for additional information please contact Berntson Porter & Company at 425-454-7990 or email info@bpcpa.com.