6041 (i.e., files required reporting forms, such as Form 1099-MISC
, Miscellaneous Income).
It should also be noted that PFML applies only to independent contractors paid on an IRS Form 1099-MISC
. That form is usually issued to those who work directly as independent contractors for businesses.
One customer, Parimal Shankar, received a Form 1099-MISC
, Miscellaneous Income, reporting the fair market value (FMV) of an airline ticket he had purchased by redeeming "thank you points" that Citibank issued as a reward for opening a bank account.
Gig workers may receive information returns (Form 1099-MISC
or Form 1099-K) listing certain earnings; whether or not an information return is received, the income should be reported.
A provision in the legislation requires Pennsylvania businesses that pay nonemployee compensation and business income to nonresident individuals, and that are required to file a federal Form 1099-MISC
with the Pennsylvania Department of Revenue, to withhold Pennsylvania income tax from payments made.
Payments that are covered include amounts paid in real estate transactions (Forms 1099-S); amounts paid in broker and barter exchange transactions (Forms 1099-B); and payments to attorneys (Form 1099-MISC
, if amounts are reported in box 8 or 14).
guidelines for proper use and classification of diverse payments on this form
(202) There are two primary information reporting regimes that are relevant to the sharing economy: (1) Form 1099-MISC
information reporting required under I.R.C.
If incurred as part of conducting a trade or business, a tenant may be required to issue a Form 1099-MISC
, but only if payments to a landlord reached or exceeded $600, and only if the landlord was not a corporation.
Issue Your 1099s: If you have made income payments of more than $600 to freelancers or independent contractors in 2014, you must issue a Form 1099-MISC
TABLE 1 Examples of the Cost of Compliance Information Cumulative Government collection compliance hours estimate of hourly compliance cost IRS Form 1040 2.7 billion $13 SEC Form 10-k 21.4 million $133 IRS Form W-2 253 million N/A IRS Form 1099-MISC
24.6 million N/A SEC Form S-3 244,399 $1,200
The GAO recommended that Congress require payers to report payments to corporations on form 1099-MISC