Information returns are also known as 1099 tax designations. They are collected by the IRS to track the revenues that are paid to individuals. Filling them out is quite simple.
Basically, this form is where you can track your revenues paid to another person for the requested tax year. For example, you would have to issue a 1099-MISC of $1,200 per year for getting the services of a lawn mower at $100 per month. IRS uses this strategy to prove that the lawn mower reported all his earning for the year.
Knowing the right form is essential upon filling up the 1099-MISC. Then you have to make sure you are using the MISC version because there are many 1099 forms. Do not print the copy in the web as IRS will only accept official copies of the form. The official version must be the one you will fill up because it is the only paper that is readable to IRS computers. Official copies are readily available in big libraries, major post offices and IRS offices near you. To make sure you didn’t get the wrong copy, you to the nearest IRS Office to ask some. You may also order online and have it directly delivered to you.
It is actually very simply to prepare the form. One tip is to print your own copy of the form so in case you make a mistake, you don’t have to throw the official copy. Then compute the total amount you paid to the people you are making the report for. Then, tally how much you have paid for someone.
The form contains a top left box when you can fill up your name. Then you have to fill up your general information including your name/business name, phone number, email address and address. Get your tax identification number and write it down on the boxes. And to the right of your tax identification number, write the tax identification number of the person you are reporting for. Then, write the address of that person at the bottom of the two boxes together with his name.
Now write down the total amount. Some are required to fill up the boxes in the middle of the form but you can leave it blank if you don’t have to. The box that appears first is the “1 Rents” field. Paid rentals that has to be reported shall be provided in this field. If you are reporting for a basic fee for the services rendered to you in the year requested, use box 7. This field is label as “nonemployee compensation.” Use this field if you don’t know that classification of your report as this is the mostly used field.
And viola! You have just filled out your 1099-MISC form. The very last step is to get another hard copy of the form and the cover sheet as well numbered 1069 and you’re good to go.