1099-MISC IRS Information Reporting. Introduction Steps the Wing Should Take 1099-MISC – Prizes...
-
date post
19-Dec-2015 -
Category
Documents
-
view
218 -
download
0
Transcript of 1099-MISC IRS Information Reporting. Introduction Steps the Wing Should Take 1099-MISC – Prizes...
Introduction
• Steps the Wing Should Take• 1099-MISC
– Prizes and Awards– Rent and Royalty Payments– Services– Attorney Payments
• Final Notes• Questions
Steps the Wing Should Take
• Be diligent with Accounts Payable postings. The first step is having correct information.– Have only one vendor card for each vendor.
• Your WFA can merge vendor cards if more than one card exists for a vendor.
– Verify that transactions posted are accurate.– Indicate 1099 Eligible Vendors in
QuickBooks• This can be done by editing the vendor and
checking the 1099 option under the “Additional Info” tab.
• Add the vendor Taxpayer ID information to QuickBooks
Vendor Edit Screen
Check this box if
vendor is eligible for
1099 reporting
Enter vendor Tax ID
from W9 here
Steps the Wing Should Take
• Decide which vendors should receive a 1099-MISC– Obtain Form W-9 from vendors
• The Form W-9 can be used as a tool to obtain the necessary information from vendors. It will also help determine if payments to vendors are reportable.
• A Form W-9 should be obtained from all vendors and kept on file at wing headquarters.
W-9 Example
Vendor should enter one TIN number. This
number should match their annual tax returns.
Vendor should
choose one business
type.
Steps the Wing Should Take
• Determine the amount to be reported on each 1099-MISC
• Provide all information needed to file your 1099-MISC Forms to your WFA. A spreadsheet will be provided that will aid in consolidating the information.– All information should be provided no
later than Jan 15th for the preceding calendar year.
– NHQ will file all 1099-MISC Forms to the IRS, state tax authority, and recipients
1099-MISC
• Required for the following– Prizes and Awards – Rent and Royalty Payments – Services performed by individuals
who are not employees and are not incorporated
– Gross Proceeds paid to Attorneys
1099-MISC Example
Civil Air Patrol
105 South Hansell Street
Maxwell AFB AL 36112
334-953-7748
All of the information for the recipient must match their annual income tax return
Prizes and Awards
• Reportable amount:– $600 per calendar year
• Information needed:– Individual’s name and address– Individual’s Social Security Number– Total amount of all prizes and awards paid to
the individual during the year
• Example:– Flight scholarships or any other cash awards to
members• Scholarships are considered awards unless paid to a
candidate to attend an educational institution for a degree
Rent and Royalty Payments
• Payments made to corporations and governments are not required to be reported
• Reportable amount:– $600 per calendar year for Rent – $10 per calendar year for Royalties
• Information needed:– Name and address that the vendor uses to file
their annual tax return– Taxpayer Identification Number that the
vendor uses to file their annual tax return– Total amount of all rent or royalty payments
paid to the vendor during the year.• Example:
– Hangar rental, office rental, or storage rental
Services
• Payments made to corporations are not required to be reported.
• Reportable amount:– $600 per calendar year
• Information needed:– Name and address that the vendor uses to file
their annual tax return– Taxpayer Identification Number that the vendor
uses to file their annual tax return– Total amount of all payments made for services
to the vendor during the year.• Example:
– Catering, facility cleaning, lawn care, or pest control
Attorney Payments
• Payments made to corporations must still be reported.
• Reportable amount:• Reportable for any amount paid per calendar
year• Information needed:
• Name and address that the vendor uses to file their annual tax return
• Taxpayer Identification Number that the vendor uses to file their annual tax return
• Total amount of all payments made for services to the vendor during the year
• Example:• Retainers and legal fees paid to law firms
Some Final Notes
• All forms must be filed with the same information as the individual or business uses to file their income taxes each year– Sole Proprietorships should be sent in the
individual’s name, not the business name– Forms sent to individuals should contain their
social security number, not an employer identification number.
• All information should be reported by calendar year, not fiscal year
• The Wing is responsible for obtaining all information via Form W-9.– The IRS penalizes $50 per form for incorrect
information filed on 1099 Forms that are not supported by a W-9.
If You Get Stuck or Need Help
• Contact your Wing Financial Analyst or Financial Management at National Headquarters!