1099 Instructions for 2011, 2012

The typical 1099 tax form involves money received from any business to someone performing any kind of contract work. It’s mandatory to report any wages received totaling any more than six hundred dollars within a single tax year.

There are many variations of this type of tax form, which are commonly known as “information returns.”

Even if you don’t receive the actual form itself from a business you did work for, you’re still required to claim these wages on your tax return. All you actually need is the employer identification number and the amount of money earned, which is considered taxable by the IRS.

There are two ways someone can do this. One is filling out the physical paperwork, and the other is on the web through an online tax-filing service. This goes for both the recipient and the business that’s filing.

However, if you need to know what to do, as the employer, here it is:

1. Send copy B of the 1099 form to the recipient by January 31st
2. Send copy A to the IRS

And that’s basically it; there are due dates and penalties of course, but none of them are too critical.

If you have over 250 different 1099s to file, then you must file electronically. If you have fewer than that, you have the choice to use paper or to file electronically. The penalties for each form that is filed late but is still within thirty days after the due date are usually $15 per worksheet.

If you’d like to know a little more, then head to an online tax service
like TurboTax Online and browse through their free tax articles. And if you decide to utilize their services, then you can use their 1099 wizard, to create, and file as many tax worksheets as you need. They’ll also give you every detail you need in order complete the process on time, and in accordance with the rules.