"Starting in 2011, any vendor or independent contractor payment that aggregates to more than $600 in a year gets a Form 1099-MISC. In the past, we've only had to give Form 1099s for services and to unincorporated entities. Now everybody gets a Form 1099, corporations included, and for all payments - services AND goods.
2011 tax change for business purchases
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"Starting in 2011, any vendor or independent contractor payment that aggregates to more than $600 in a year gets a Form 1099-MISC.
In the past, we've only had to give Form 1099s for services and to unincorporated entities. Now everybody gets a Form 1099, corporations included, and for all payments - services AND goods.
If you buy office supplies at Office Depot, better be prepared to give a Form 1099-MISC to them if the aggregate is over $600 in a year."
And the IRS gets a copy!
For more information, see Diane Kennedy's tax blog atDiane Kennedy's USATaxAid Got W-9? How New Health Care Bill Form 1099-MISC Requirement Will Drown You in Paperwork
In the past, we've only had to give Form 1099s for services and to unincorporated entities. Now everybody gets a Form 1099, corporations included, and for all payments - services AND goods.
If you buy office supplies at Office Depot, better be prepared to give a Form 1099-MISC to them if the aggregate is over $600 in a year."
And the IRS gets a copy!
For more information, see Diane Kennedy's tax blog atDiane Kennedy's USATaxAid Got W-9? How New Health Care Bill Form 1099-MISC Requirement Will Drown You in Paperwork
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