Comments on: Ask the Taxgirl: Issuing a 1099 http://www.taxgirl.com/ask-the-taxgirl-issuing-a-1099/ Paying taxes is painful... but reading about them shouldn't be. Sun, 12 Feb 2012 17:55:29 +0000 hourly 1 http://wordpress.org/?v=3.1.3 By: Ramesh B Duppala http://www.taxgirl.com/ask-the-taxgirl-issuing-a-1099/comment-page-1/#comment-23613 Ramesh B Duppala Mon, 31 Jan 2011 19:29:05 +0000 http://www.taxgirl.com/ask-the-taxgirl-issuing-a-1099/#comment-23613 Can you please clarify my doubts about 1099 contractor. In our Indian company (head office in USA)we have three persons who are paid on hourly rate for their marketing support activities. They are disclosed as "Hourly Charge - 1099 Contractor" in our payroll. No deductions would be made while paying the amounts to them. They are providing marketing services to the company and paid on hourly basis. In addition, if they incur any expenditure for the company, the same would be reimbursed along with this hourly payment. One person was paid around 25k over the year from Jan to Dec'10. Another person was paid 10k over the year from Jan to Dec'10. Third person was paid 3.9k over the year from Jan to Dec'10 My doubts are ... What is the form to be filled (I think Form 1099)? What are the details required to fill that form. Please give me an example form which was already filled? Who should file the form with whom? When this should be filed? what are the due dates and penalties if not filed in time? The acconting year selected by our compay is April to March instead of Jan to Dec. Would this have any affect on the filing due date or on filling the form ? Can you please clarify my doubts about 1099 contractor.

In our Indian company (head office in USA)we have three persons who are paid on hourly rate for their marketing support activities. They are disclosed as “Hourly Charge – 1099 Contractor” in our payroll. No deductions would be made while paying the amounts to them.

They are providing marketing services to the company and paid on hourly basis. In addition, if they incur any expenditure for the company, the same would be reimbursed along with this hourly payment.

One person was paid around 25k over the year from Jan to Dec’10.
Another person was paid 10k over the year from Jan to Dec’10.
Third person was paid 3.9k over the year from Jan to Dec’10

My doubts are …

What is the form to be filled (I think Form 1099)?
What are the details required to fill that form.
Please give me an example form which was already filled?
Who should file the form with whom?
When this should be filed?
what are the due dates and penalties if not filed in time?

The acconting year selected by our compay is April to March instead of Jan to Dec. Would this have any affect on the filing due date or on filling the form ?

]]> By: Carol McVey http://www.taxgirl.com/ask-the-taxgirl-issuing-a-1099/comment-page-1/#comment-13833 Carol McVey Thu, 28 Jan 2010 20:14:45 +0000 http://www.taxgirl.com/ask-the-taxgirl-issuing-a-1099/#comment-13833 Are CPAs like attorneys in that they get a 1099 no matter what the amount and whether or not they are incorporated? Are CPAs like attorneys in that they get a 1099 no matter what the amount and whether or not they are incorporated?

]]> By: Ask the taxgirl: 1099 for Rent | taxgirl http://www.taxgirl.com/ask-the-taxgirl-issuing-a-1099/comment-page-1/#comment-8820 Ask the taxgirl: 1099 for Rent | taxgirl Tue, 10 Feb 2009 17:00:00 +0000 http://www.taxgirl.com/ask-the-taxgirl-issuing-a-1099/#comment-8820 [...] No, you generally don’t issue a form 1099 for rental payments, nor do you issue forms 1099 for most corporations (there are some exceptions). For more on when a form 1099 might be appropriate, check out my prior post about when to issue a 1099. [...] [...] No, you generally don’t issue a form 1099 for rental payments, nor do you issue forms 1099 for most corporations (there are some exceptions). For more on when a form 1099 might be appropriate, check out my prior post about when to issue a 1099. [...]

]]> By: James Kendall CPA http://www.taxgirl.com/ask-the-taxgirl-issuing-a-1099/comment-page-1/#comment-5955 James Kendall CPA Sat, 06 Sep 2008 00:38:07 +0000 http://www.taxgirl.com/ask-the-taxgirl-issuing-a-1099/#comment-5955 Are there any current regulations and or rulings on how to account for RAL loans for a cash basis taxpayer? IRS says none, regs are obsolite and before RAL's, so don't apply. I have been just expensing the cost and picking up the income. IRS is not telling me to ignor the cost and the income and just report the fee income. This is rather complicated since cash basis taxpayer you expense an item when the check is written report the income when income is received. The difference hits the botom line. Don't really see anything to gain for IRS to insist on changing my accounting method for such short term loans. It comes out in the wash the same way, either way. so why would they try to change my method of accounting and really complicate my accounting for something so simple? This of course raises the issue of bad debt or losses on loans that sometime occur. They don't know when "bad debts" should be written off and won't give any guidance. Spent all day on phone today with business specialist and loan specialist and no one knew how a cash basis schedule C preparer should really report these short term loans because so new. Yet IRS wants me to jump thru hoops to arive at the same bottom line. Doesn't make sense. Any support for continuing to treat these transactions just like you do for any expense and income item would be appreciated. Seems like they want me to report the net income currently, but wait for 4 yrs to write off any loans unpaid. Heck, you know they are bad right away when you don't get your money, the taxpayer dies, files bankruptcy or won't return you calls etc. Hardly no one is gong to pay you out of their own pocket if their refunds are not sufficient. I just treat these as bad debts in the year they are unpaid and report them in income in the event the taxpayer suddenly pays me next year or partially pays me. Just sole proprietor and don't have resources to hire full time accounts receivable accountant just for RAL loans! Thanks! Are there any current regulations and or rulings on how to account for RAL loans for a cash basis taxpayer? IRS says none, regs are obsolite and before RAL’s, so don’t apply. I have been just expensing the cost and picking up the income. IRS is not telling me to ignor the cost and the income and just report the fee income. This is rather complicated since cash basis taxpayer you expense an item when the check is written report the income when income is received. The difference hits the botom line. Don’t really see anything to gain for IRS to insist on changing my accounting method for such short term loans. It comes out in the wash the same way, either way. so why would they try to change my method of accounting and really complicate my accounting for something so simple? This of course raises the issue of bad debt or losses on loans that sometime occur. They don’t know when “bad debts” should be written off and won’t give any guidance. Spent all day on phone today with business specialist and loan specialist and no one knew how a cash basis schedule C preparer should really report these short term loans because so new. Yet IRS wants me to jump thru hoops to arive at the same bottom line. Doesn’t make sense. Any support for continuing to treat these transactions just like you do for any expense and income item would be appreciated. Seems like they want me to report the net income currently, but wait for 4 yrs to write off any loans unpaid. Heck, you know they are bad right away when you don’t get your money, the taxpayer dies, files bankruptcy or won’t return you calls etc. Hardly no one is gong to pay you out of their own pocket if their refunds are not sufficient. I just treat these as bad debts in the year they are unpaid and report them in income in the event the taxpayer suddenly pays me next year or partially pays me. Just sole proprietor and don’t have resources to hire full time accounts receivable accountant just for RAL loans! Thanks!

]]> By: Ask the taxgirl: 1099s, 1040s and Rebate Checks http://www.taxgirl.com/ask-the-taxgirl-issuing-a-1099/comment-page-1/#comment-5954 Ask the taxgirl: 1099s, 1040s and Rebate Checks Mon, 24 Mar 2008 21:31:11 +0000 http://www.taxgirl.com/ask-the-taxgirl-issuing-a-1099/#comment-5954 [...] are several different types of forms 1099 - you can read about many different versions here. A form 1099-MISC is issued to you most often when you have performed services on a non-employee [...] [...] are several different types of forms 1099 – you can read about many different versions here. A form 1099-MISC is issued to you most often when you have performed services on a non-employee [...]

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