Part of running any business is paying taxes. We’ll be talking in coming posts about different aspects of this, to help simplify what can seem really confusing at first.
What are 1099 forms? They are IRS forms that must be filed whenever you pay an individual (not a corporation) more than $600 in a year. To assemble this information, you’ll need their full name, address, and tax identification number.
Filing these is an example of how the internet has made life so much easier. Not so long ago you would have to go the office supply store, buy forms and software for your computer, or forms to type on a typewriter. The forms were always sold in packs of 25. That’s about 20 more than even the busiest private practice would need.
Then you’d have to enter everything in, or type making no errors (probably why 25 forms wasn’t a bad idea!). Then each form would have to be mailed to the recipient, and a summary form, called a 1096, sent off to the IRS.
Now? I use FileTaxes.com, and in just a few minutes my forms are finished, mailed out by them, and filed with the IRS. I think I paid under $10 this year for that service. Seriously, it is less than I used to pay for the forms, and so much easier.
The deadline for filing these forms to the recipients was January 31, but the deadline for filing the 1096 part that goes to the IRS is February 28. So, don’t panic if you haven’t done it yet. Just do it now!
Disclaimer: of course, nothing on this site or in this post should be construed as giving tax advice. For more information, here’s a link to the IRS site for small businesses. Lots of good information, if you don’t have an accountant.
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