IRS Form 1099-MISC is used to report payments made to workers or independent contractors, with specific filing requirements based on the amount paid. The form must be sent to recipients by January 31st and filed with the IRS by February 28th for paper submissions or April 1st for electronic submissions. Penalties for not filing correctly can range from $30 to $1,500,000 depending on the timing of the filing and severity of the infractions.

1. IRS Form 1099-MISC
 The 1099-MISC is used to report those payments that
have been made towards jobs or to workers or
independent contractors for the jobs undertaken by them.

2. Who Needs To File A 1099-MISC?
 Broker and/or royalties expenditures with respect to
dividends/tax-exempt interests in excess of $10
 Attorney expenses paid
 Sales of minimum $5,000 of FMCGs to a buyer for
resale anywhere but a retail concern
 Every contractor paid minimum $600 during the tax
year is to be reported individually.

3. Process For Filing Form 1099-MISC?
The information on the Form 1099-MISC is to be
completed adhering to the detailed instructions
supplied by the IRS. The following 4 copies are to
be crated and distributed:
 Copy A to be submitted to the IRS
 Copy B and 2 to be submitted to the contractor for
his/her IT returns
 Copy 1 to be given to the tax department of the
state, i.e., if it is applicable
 Copy C is to be reserved for the employer’s archives.

4. Who Are Out Of Form 1099-MISC?
 If you are employed by a firm or a registered
corporation, then you are not supposed to file the
Form 1099-MISC.
 Entities or individuals paying for
scholarship/fellowship support (student should file
return).

5. When is Form 1099-MISC To Be Filed?
 January 31st– 1099-MISC Form must be sent to the
recipient
 February 28th – The Form 1099-MISC is to be filed
with the IRS physically via paper
 April 1st – The Form 1099-MISC is to be filed
electronically with the IRS.

6. Process For E-Filing Form 1099-MISC?
 The e-filing of the 1099-MISC can be done online on the
IRS website or the individual can download the e-Smart
Form of the 1099-MISC on his computer and upload the
data and information on the IRS website.
 Additionally, the process of e-filing does away with the
copy A of 1099-MISC. However, the additional still need
to be given and distributed to the contractors.
 Also, e-filing does away with the necessity to file Form
1096 with the IRS.

7. How To Select Correct E-Service
Provider For Filing Form 1099-MISC?
 Should be approved by the IRS (will have the IRS
logo on their website)
 Must be secure and safe to trust with important
info(check the site’s security certificate)
 Have ample client assistance service – phone,
email, etc.
 Should be affordable, reasonable and cost
effective.

8. Penalties For Not Filing The Form 1099-
MISC
 $30 per info filed correctly within 30 days
(maximum penalty $250,000/year limited to
$75,000 for small industries).
 $60 per info filed correctly between 30 days (March
28th)and 1st August (maximum penalty
 $500,000/year limited to $200,000 for small industries).
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9. Penalties For Not Filing The Form 1099-
MISC
 $100 per info filed correctly after 1st August
(maximum penalty of $1,500,000/year limited to
$500,000 for small industries).
 $250 penalty for deliberate failure to file.

10. About Us
 1099Fire focuses solely on the information
reporting industry.
 We develop and maintain software for year-end
information compliance of 1042-S, 1097, 1098,
1099 software, 3921, 3922, 5498, 8027, 8955-
SSA, W-2G, and W-2/W-3 (with corrections).

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1099-MISC.
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