E-Alert
June 10, 2010
Form 1099 Filing Requirements Expanded
The recent health care reform bill includes a provision for additional Form 1099 reporting to be phased in over the next two years.
Part of the provision calls for a new 1099 form, called the 1099-K, which will require businesses processing more than 200 payments annually to report credit and debit card payments totaling over $20,000. This filing requirement will be effective starting in 2011.
In 2012, Form 1099-MISC filing requirements will also be expanded. Businesses will have to file 1099-MISC forms for all business, as well as individual, payments or purchases over $600 in a calendar year.
Businesses will need to routinely request taxpayer ID numbers from all applicable individuals and companies to comply with the Form 1099 requirements.
The extensive information reporting requirements are estimated to raise an extra $345 billion in revenue for the IRS in an effort to shrink the federal budget deficit.
If you have any questions regarding the information in this article, or have any other issues you would like to discuss, please feel free to contact the DZH Phillips tax department at 415.781.2500 or email cpas@dzhphillips.com.
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