The widely known information return is also called as the 1099 tax designation. These information returns are collected to monitor each revenue paid. Filling them out is quite simple.
In this form, you will see your revenues for someone at a specific tax year. Suppose you have a gardener and you pay him $100 for one year to render gardening services, you would have to issue $1,200 as 1099-MISC. This way, IRS keeps track of the revenues reported by the gardener.
In filling up this tax designation, you must first know the right format. Then you have to make sure you are using the MISC version because there are many 1099 forms. Do not print the copy in the web as IRS will only accept official copies of the form. The official version must be the one you will fill up because it is the only paper that is readable to IRS computers. You may get an official copy in libraries, post offices as well as the IRS offices in all branches. Ask an official copy in major post offices, IRS offices and in big libraries as well. The IRS website has a system where you can order the official cope online for delivery.
It is actually very simply to prepare the form. Start by printing a copy of the form with your printer so you can just throw it away if you make a mistake. The next thing to do is add up all the payments you made to the requested person. If you’re reporting for numerous people, get one form for each and fill them out separately.
Write your name on the top left box of the form. Including your contact detail such as name/business name, phone number, address and email is important. Then, write down your tax identification number in the space provided for it. Repeat the same for the right box that asks for another tax identification number but this time, write the tax identification number of the one you are issuing the form for. Then, write the address of that person at the bottom of the two boxes together with his name.
Now write down the total amount. The boxes running vertically n the middle of the form may have to be filled up by some. You can see the first box which is intended for “1 Rents” Rentals paid have to be reported here. If you are reporting for a basic fee for the services rendered to you in the year requested, use box 7. This is the “nonemployee compensation” field. This field is the one that’s commonly requested so if you are having a hard time classifying your report, use this field.
And viola! You have just filled out your 1099-MISC form. The very last step is to get another hard copy of the form and the cover sheet as well numbered 1069 and you’re good to go.