What Are The 1099 Reporting Requirements?
Most every trade or business that makes payments of at least $600 needs to know the answer to this question "what are the 1099 reporting requirements?" Failure to comply with the 1099 reporting requirements can result in stiff penalties imposed by the Internal Revenue Service. If a trade or business has any doubt concerning the 1099 reporting requirements, they should seek professional assistant from an accountant or tax professional. So, what are the 1099 reporting requirements?
The most common 1099 form for a business is the 1099-MISC. A business must file this form whenever a payment of $600 or more has been paid for services, rents, awards, prizes and any other income amounts. Attorney fees paid in the amount of $600 or more needs to be reported on Box 14 of this form and is another example of the 1099 reporting requirements.
A 1099-INT needs to be filed by a government entity that has made interest income payments during the calendar year, depending on the amount of the interest and account for which payment was made. For example, a 1099-INT must be filed if interest income of $10 or more was paid out on bank or credit union accounts, tax credit bonds, and bonds, including U.S. savings bonds. For damage awards, income tax refunds, and other governmental operations payments, the requirement is $600 or more of interest income payments.
Certain governmental payments, such as unemployment compensation, state or local income tax refunds and credits, agricultural payments, CCC loan market gain repayments to name a few, must be reported on Form 1099-G. Interest received on student loans of $600 or more must be reported on Form 1098-E as part of the 1099 reporting requirements. Payments made from annuities, pensions, retirement or profit-sharing plans over $10 need to be reported on Form 1099-R.