Unlike with other Forms 1099
, the IRS may be unable to verify a Form 1099-K amount based on a taxpayer's income tax return without first requesting additional information from the taxpayer.
Two vendors reported prices for preparing and filing Forms 1099
of about $10 per form for 5 forms to about $2 per form for 100 forms, with one charging about $0.
The concern is that attorneys are going to be receiving Forms 1099
for very large amounts, of which only a portion is actually attorneys' fees.
There are a variety of forms 1099
that account for other sources of income.
One alternative method allows the trustee of the trust to file Forms 1099
in lieu of a Form 1041 (see Regs.
9) Hence, the proposed regulations generally contemplate that multiple Forms 1099
(or a Form W-2 and a Form 1099) will be issued to different parties for the same (or included) amounts arising from the same transaction or payment.
Unless the requirements is repealed beginning in 2012, all companies will have to issue Forms 1099
to any individual or corporation from which they buy more than $600 in goods or services in a tax year.
Delivering forms 1099
electronically to recipients saves money and increases efficiencies; eliminates possibility a recipient's 1099 forms get lost or stolen; reduces environmental impact and saves trees; gives recipients earlier access to their 1099 forms; eliminates need for aligning pre-printed forms; makes 1099s easier to correct if errors get discovered after forms get sent.
Filing Forms 1099
with the IRS and Mailing Statements to Payees
Appropriate instructions for Forms 1099
and W-2 must be provided to the form recipient similar to those on the official IRS form to aid in proper reporting.
Thus, TEI submits that the proposal to require the filing of Forms 1099
in respect of service payments to corporations may impose substantial costs and yield little benefit to the tax administration system.
Similarly, they would no longer be required to report such information on Forms 1099