However, for tax year 2009, Citibank started issuing Forms 1099
to various customers.
Payments not reportable on Forms 1099
tend to be ignored by taxpayers and thus escape taxation." (17)
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 $0.80 per form for 100,000 forms.
As a result, typically a payor will have to file Forms 1099
for just five or ten of the transactions conducted annually.
These include Forms W-2 showing wages from employment and Forms 1099
showing compensation from any independent contracting work you performed.
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.
The Continuing Issue of Late and Amended Forms 1099
Give annual information statements (Forms 1099
) to recipients of certain payments you made during 2012.
[o]ther information returns are required with respect to some or all of a payment under other applicable provisions of the Internal Revenue Code and the regulations thereunder." The preamble explains that the exception [to reporting contemplated] in section 6045(f)(2)(B) is limited to situations where the amount of the attorney fee is already reportable to the attorney as income or wages."(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.
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.
With this announcement in place, why did Citibank file Forms 1099
to report the miles as income?
One alternative method allows the trustee of the trust to file Forms 1099
in lieu of a Form 1041 (see Regs.