How to Deal with Form 1099 Tax Planning
There are two new questions on many income tax returns for 2011 that were not on last year’s returns. Both are based around Form 1099 Tax planning.
The questions are:
- “Did your business make any payments in 2011 that would require it to file Form(s) 1099?”
- “If ‘yes’, did the business file or will it file all required Forms 1099?”
Every business – corporations, S corporations, partnerships, LLC’s, Schedule C proprietorships, Schedule F farming operations – must answer “Yes” or “No” to the above questions on their 2011 income tax returns this year.
Business owners should be prepared to answer these questions by reviewing their records and determining if they have complied with current Form 1099 reporting requirements.
If you are not prepared for these questions or do not know if you are required to file Form(s) 1099, please contact us. We can help.
-Edward D. Garris, PhD, CPA