Opportunity knocks as we venture into a new calendar year. Unfortunately, so do the tax-filing tasks. One of the first to appear is the obligation to report certain payments to independent contractors to the IRS on Form 1099-MISC.

The IRS has neither the time nor the money to audit all the world to ensure that taxes are paid by law. Instead, it seems obvious to indications that someone is playing with funny money. In the case of contractors independent, one way this is accomplished is by comparing the revenue generated by that party as to the amount Other Parties reported that they pay. Put another way, the bells are going to call if you report income of $ 30,000 in 2008, but companies report paying $ 50,000 to you!

If you paid the contractors independent services in 2008, may have to report the total amount paid to the IRS. This is done on Form 1099-MISC. It is a fairly simple to fill, but There are a few things you need to know about it.

The IRS has a large website. Amazing, huh? Many people go to it to download forms. Unfortunately, you can not do this with 1099 forms. These forms come in threes carbon, so printing out on a computer does not work. You can find the originals in the main library in their city. They are also in the offices of the IRS, but usually are collected faster. You can also buy in the shops of many offices. Whatever choice you make, be sure to pick up the Form 1096 as well. Must also be present and tells the IRS how many 1099 and information forms you are submitting in total. Ah, bureaucracy at its best!

So, who must file Forms 1099-MISC for? In general, you must submit to an independent contractor has paid a total of $ 600 or more in 2008. If you paid a friend of a friend to design a website for your business gardening and paid them $ 1,000, are responsible for it.

As with all tax issues, there are many exceptions. Any payment to a lawyer for the professional services must be reported. The alimony payments made to a former spouse, usually must be reported. Make sure you talk to your professional taxes in 1099 or read the instructions for what is required.

So when 1099-Miscs must be filed? The deadline for providing a copy to the independent contractors you report is January 31, 2008. Since it falls on a weekend, the deadline is automatically extended to February 2 – the following Monday. The IRS also need a copy of the 1099-MISC, but the deadline to provide to them through e-mail is 2 March 2009. If you file electronically, the date limit 31 March 2009.

Dealing with taxes is usually quite low on the priority list for most people. That said, is something that has to do, so start loading up on their way and possibly for you to file. 1099 is the place to start.

Richard A. Chapo writes about taxes for BusinessTaxRecovery.com.

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