As a small business owner or business contractor, if you earn over $600 form any individual or company, the said individual or company is supposed to issue an IRS 1099 MISC form for the work you have done. This form can be used in cases of rents, royalties, and revenues. It also includes all types of incomes that are outside the scope of the aforementioned categories. When you have issued a 1099-MISC form, the company or individual is also supposed to send a duplicate of the form. This will help the IRS monitor the amount of money you earn in any fiscal year.
Steps to take if you do not get a Form 1099
The IRS 1099 MISC forms are supposed to be issued to all contractors and business owners by 31 January, 2014. There are endless instances of businesses failing to pay the taxes in time every single year and the government becomes aware of such parties and closely scrutinize their incomes. Ideally if you do not get a form 1099 you want to get it sorted out as soon as possible. You can refer your case to the IRS authorities and the time will be extended to the end of February so you can collect the IRS form from the respective business owners or contractors. You should file 1099 online as soon as you get the form.
What if I do not receive my form by the first week of March?
If the company or individual does not supply you with a by the first week of March you need to take action immediately. The first step is to resolve the issue directly with the business owners or individuals. If it is a case of unawareness you should explain the details of the IRS 1099 MISC form and help them out. Most business owners focus on their business activities and often forget about these things, giving them a heads up is a sure fire way of getting everything sorted out. You should file 1099-misc online as soon as the individual or company sends you the form.
If you still do not receive your tax form you should report it to the IRS authorities so they can take proper steps against the said company or individual. Do remember that 1099 MISC forms are not filed along with your tax returns, they are meant to be information forms and if you fail to receive one – it is not the end of the world.You would know how much revenue you have earned in any particular year from your records either way and you can inform the IRS yourself. The form has nothing to do with taxes, it only keeps the Internal Revenue Services informed of all business activities. You can calculate the total of all invoices sent to the particular client or have a look at your bank statements to find out the amount of revenue earned.