1. Irs form 1099 reporting: Filing returns

2. Filing Returns How to Properly Complete Form 1096
Form a compilation/summary return (similar to a cover letter) showing totals from Form 1099 returns being submitted to the IRS
Must submit to IRS with all Form 1099s of the same type
Need separate 1096 for every type of Form 1099 submitted
Must complete either Box 1 or 2, and Box 3, 4, 5 and 6
Box 1: EIN, or Box 2: SSN
Box 3: # of Forms
Box 4: Total Federal Income Tax Withheld (if any)
Box 5: Total amount of income reported in aggregate
on Form 1099s
Box 6: Check appropriate box to indicate type of
Forms 1099 enclosed

3. Filing Returns How to Properly Complete Form 1096
Where to file depends on your "principal place of business" or legal residence
#1: Department of the Treasury
Internal Revenue Service Center
Austin, TX
If From: AL, AZ, AK, CT, DE, FL, GA, KY, LA, ME, MA, MS, NH, NJ, NM, NY, NC, OH, PA, RI, TX, VT, VA, WV
#2: Department of the Treasury
Kansas City, MO
If From: AL, CA, CO, DC, HI, ID, IL, IN, IA, KS, MD, MI, MN, MO, MT, NE, NV, ND, OK, OR, SC, SD, TN, UT, WA, WI, WY

4. Filing Returns How to Properly Complete Form 1096
A transmitter, service bureau, paying agent, or disbursing agent may sign the Form 1096 as an "Agent" when the following conditions are met:
Agent has authority to sign the form under a legally valid agency agreement (oral, written, or implied), and
Agent signs the form and adds the caption:
"For [Name of Payor]…"

5. Filing Returns Understanding Deadlines
Forms 1099 generally have two deadlines:
IRS: February 28, 2013
Payee: January 31, 2013
Form 8809, Application for Extension of Time to File Information Returns
Due on same date of underlying forms
*Includes asking for extension of time to send Forms 1099 to payee

6. Filing Returns Understanding Deadlines
Continued…..
Form requesting an extension may be submitted on paper, or through the Filing Information Returns Electronically (FIRE) system (either as fill-in form or electronic file)
If requesting an extension for more than ten filers, must do the extension request online
The due date for filing Forms 1099 electronically through the FIRE System is April 1, 2015
Note: this is longer than other IRS deadline for Forms 1099 – February 28, 2013

7. Filing Returns Filing Electronically - Who is required?
An employer must file electronically if filing 250 or more information returns
The 250-or-more requirement applies separately to each type of form
Ex: If an employer must file 500 Forms 1099-DIV and 100 Forms 1099-MISC, the employer only MUST file electronically the 500 Forms 1099-DIV
Note: originals and corrections are not aggregated to determine whether an employer is required to file electronically

8. Filing Returns Filing Electronically - Who is required
Filing Returns Filing Electronically - Who is required? Approval and Waiver
APPROVAL:
File Form 4419, Application for Filing Information Returns Electronically at least 30 days before the due date of the returns to ask for the IRS' permission to file 1099 returns electronically
Once receive approval, don't need approval again
WAIVER:
To receive a waiver from the required filing of information returns electronically, submit Form , Request of Waiver From Filing Information Returns Electronically, at least 45 days before the due date of the returns
Cannot apply for more than one waiver per tax year – must re-apply at the appropriate time each year

9. Filing Returns How to Correct Errors
When making corrections, correct as soon as possible and file Copy A and Form 1096 with Internal Revenue Service Center address where originally filed
*Furnish statements to recipients showing the correction
Must oblige the following rules:
Complete all information on the forms
No cutting or separating forms that are two to three to a page
Cannot staple forms to Form 1096
If correcting state or local information only, no need to send to IRS, but must file with appropriate state agency
If form previously filed with the IRS or furnished to payee, enter an X in the "corrected" checkbox on the top of the form
X CORRECTED

10. Filing Returns How to Correct Errors Voiding Returns
An "X" in the "Void" box at the top of the form will void an incorrectly completed Form that has not yet been sent to the IRS
X VOID
Ex: If make an error typing or printing a form, void and the return will be disregarded during processing.
In other words, if need to void one, but rest of the forms are good, then can void one and send the rest to the IRS
No cutting or separating – submit entire page only if one of the forms on the page is a good return

11. Filing Returns Proper Procedures – More Complicated than One Might Think Common Filing Mistakes
ONLY submit Copy A to the IRS
Do not cut or separate Copy A, which is printed two or three forms to a sheet
No photocopies are acceptable
Do not staple, tear, or tape
Must remove printed strips outside the 8 x 11 inch area before submission, without tearing or ripping the form (BE CAREFUL!)
Make only one entry in each box, unless otherwise indicated by the form's specific instructions
Do not use prior years' forms unless reporting prior year information

12. Filing Returns Proper Procedures – More Complicated than One Might Think Penalties for Improper Filing
IRS requires a showing of "reasonable cause" to justify a failure to file a correct information return
Applies if:
Did not file on time
Did not include all information required to be shown on a return
Included incorrect information
Filed on paper when required to file electronically
Reported an incorrect Taxpayer Identification Number (TIN) or failed to report this number altogether
Failure to file paper forms that are machine readable (due to bad handwriting most often)

13. Filing Returns Proper Procedures – More Complicated than One Might Think Penalties for Improper Filing
The amount of the penalty is based on when you file the correct information return
$30/return if file within 30 days of due date (by March 30 if due date is February 28)
Maximum penalty is $250,000/year, unless a "small business" (defined as a business with average annual gross receipts of $5 million or less for the 3 most recent tax years [or existence, if shorter than 3 years] ending before the calendar year in which the returns were due), when the maximum penalty cannot exceed $75,000
$60/information return if correctly file more than 30 days after the due date, but before August 1
Maximum penalty is $500,000/year, unless a "small business," when maximum penalty cannot exceed $200,000
$100/information return if file after August 1 or do not file at all
Maximum penalty is $1,500,000/year, unless a "small business," when maximum penalty cannot exceed $500,0000

14. Filing Returns Proper Procedures – More Complicated than One Might Think How to Meet the "Timely Mailing as Timely Filing" Rule
Must use certain private delivery services designated by the IRS to meet the "Timely Mailing as Timely Filing" rule for information returns
The list of delivery services approved by the IRS includes ONLY the following:
DHL Express, DHL Same Day Service
FedEx Priority Overnight, FedEx Standard Overnight, FedEx 2 day, FedEx International Priority, and FedEx International First
UPS Next Day Air, UPS Next Day Air Saver, UPS 2nd Day Air A.M., UPS Worldwide Express Plus, and UPS Worldwide Express

15. How long do you need to keep copies of Form 1099?
Filing Returns Proper Procedures – More Complicated than One Might Think Record Keeping Rules
How long do you need to keep copies of Form 1099?
The IRS recommends that taxpayers generally keep copies of information returns filed with the IRS or have the ability to reconstruct the data, going back at least three years
Keep copies for 4 years if Backup Withholding has been imposed

16. Filing Returns Proper Procedures – More Complicated than One Might Think Shipping Rules
IRS also requires particular specifications for sending forms to them:
Send the forms to the IRS in a flat mailing envelope (do not fold forms)
If sending many forms, send them in conveniently-sized packages
On each package write:
Name
Number packages consecutively (i.e., 1, 2, 3, 4, etc.)
Place Form 1096 in the package marked "1"

17. Filing Returns Proper Procedures – More Complicated than One Might Think Tips
For sole proprietors, must show individual's name on the first line and enter the phrase "doing business as (DBA)" followed by the sole proprietor's business name, if applicable
*Sole proprietors are not required to have an EIN unless he or she must file excise or employment taxes
If the recipient is a U.S. Citizen, use IRS Form W-9 to request the information needed to complete the Form 1099
If recipient is a non-resident, request whichever version of IRS Form W-8 the individual can obtain
*It is important that you have the correct taxpayer ID number (i.e., FEIN, SSN, TIN) because you may be subject to a penalty for an incorrect or missing taxpayer ID number on the form

18. Filing Returns Proper Procedures – More Complicated than One Might Think Tips
Required to include the telephone number of a person at the employer to contact on Forms 1099-DIV and 1099-MISC
For 1099-DIV, must deliver the recipient copy either in person, by First-Class Mail to the recipient's last known address, or electronically
No additional enclosures, such as advertising, promotional materials, or a quarterly or annual report, are permitted with any Forms 1099
Company logos are permitted on the envelope and any non-tax enclosures.