IRS Form 1099 MISC, Miscellaneous Income
Form 1099-MISC is used to report payments made in the course of trade or business. File IRS 1099-MISC to report miscellaneous payments, for example rents, royalties and other items.
IRS 1099 MISC Form & Instructions
File Form 1099-MISC, Miscellaneous Income, for each person to whom you have paid during the year:
- At least $10 in royalties or broker payments in lieu of dividends or tax-exempt interest ;
- At least $600 in rents, services (including parts and materials), prizes and awards, other income payments, medical and health care payments, crop insurance proceeds, cash payments for fish (or other aquatic life) you purchase from anyone engaged in the trade or business of catching fish, or, generally, the cash paid from a notional principal contract to an individual, partnership, or estate;
- Any fishing boat proceeds; or
- Gross proceeds of $600 or more paid to an attorney.
In addition, use Form 1099-MISC to report that you made direct sales of at least $5,000 of consumer products to a buyer for resale anywhere other than a permanent retail establishment. You must also file Form 1099-MISC for each person from whom you have withheld any federal income tax under the backup withholding rules regardless of the amount of the payment.
Report on IRS Form 1099-MISC 2015 only when payments are made in the course of your trade or business. Personal payments are not reportable. You are engaged in a trade or business if you operate for gain or profit. However, nonprofit organizations are considered to be engaged in a trade or business and are subject to these reporting requirements.
Other organizations subject to these reporting requirements include trusts of qualified pension or profit-sharing plans of employers, certain organizations exempt from tax under section 501(c) or (d), farmers' cooperatives that are exempt from tax under section 521, and widely held fixed investment trusts. Payments by federal, state, or local government agencies are also reportable.
Some payments do not have to be reported on Form 1099-MISC, although they may be taxable to the recipient. Payments for which a Form 1099-MISC is not required include all of the following:
- Payments to a corporation.
- Payments for merchandise, telegrams, telephone, freight, storage, and similar items.
- Payments of rent to real estate agents.
- Wages paid to employees.
- Military differential wage payments made to employees.
- Business travel allowances.
- Cost of current life insurance protection.
- Payments to a tax-exempt organization including tax-exempt trusts.
- Payments made to or for homeowners from the HFA.
Form 1099 MISC Filing Due dates:
Furnish Copy B of this form to the recipient by February 1, 2016. The due date is extended to February 16, 2016 if you are reporting payments in boxes 8 or 14. File Copy A of this form with the IRS by February 29, 2016.
If you file electronically, the due date is March 31, 2016. To file electronically, you must have software that generates a file according to the specifications in Pub. 1220, Specifications for Electronic Filing of Forms 1097, 1098, 1099, 3921, 3922, 5498, 8935, and Form W-2. The IRS does not provide a fill-in form.
Penalties For Late Filing a 1099 MISC Form
It is important to file your 1099 on time to avoid incurring penalties. The E-File deadline is March 31. 2016. According to the General Instructions for Certain Information Returns the penalty applies if you fail to file timely, you fail to include all information required to be shown on a return, or you include incorrect information on a return. The penalty also applies if you file on paper when you were required to file electronically, you report an incorrect TIN or fail to report a TIN, or you fail to file paper forms that are machine readable.