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2011 Form 1099-MISC Confusion

There’s been new rules, then some rules repealed and then some added. It’s hard to know where we stand with all the Form 1099-MISC filing requirements.

First, where’s the specific 2011 Form 1099-MISC Instructions? It’s missing from the IRS’s web site as of the writing of this post. There’s instructions for 2010 and 2012 but no 2011. It should be here: http://www.irs.gov/pub/irs-pdf/i1099msc_11.pdf┬ábased on the naming scheme used for other instructions. A deeper search of the IRS’ site where they store revisions shows it here: http://www.irs.gov/pub/irs-prior/i1099msc–2011.pdf. Maybe because of all the changes it’s messed up or maybe the 2012 one is really the latest 2011…who knows!

According to an Intuit Knowledge Base Article, Beginning with tax year 2011, the IRS requires you to exclude certain payment types you made to a 1099 vendor on Form 1099-MISC that will be included on third party payment processors such as credit card companies, PayPal etc. on forms 1099-K. http://payroll.intuit.com/support/kb/2001238.html?cid=1099_commty

Only 2012 version of QuickBooks have a wizard cabable of helping you code and exclude such payments. All other versions you must take a manual work-around and there are a few options. A couple of which are listed here: http://payroll.intuit.com/support/kb/1002600.html.

To top it off, according to the General Intructions for From 1099 penalties are increasing for improperly filed and non-filed information returns! http://www.irs.gov/pub/irs-pdf/i1099gi.pdf

We can help you get it right. There’s still some time left…call today.