-misc Forms For Independent Contractors For

As we begin , youre probably not thinking about taxes at all. This is a mistake as deadlines are approaching for issuing and filing s to independent contractors. What is a MISC? Generally speaking, the IRS requires you to report certain payments you made during the year to independent contractors. The -MISC form is a single page on which you report to total amount you paid to the independent contractor during . The -MISC forms must be issued to any person you paid at least $ in rents, services or other income payments. For example, if you hired a contractor to renovate a room in your home and paid them $,, a -MISC filing would be required. As with practically any IRS filing, there are additional situations that require a filing. Any payments to attorneys must be reported regardless of the amount. Royalties totaling over $ also must be reported. Generally, you are not required to report payments to a corporation. When and What Must Be Filed? The -MISC form is a multi-layered carbon form, so make sure the information you provide appears clearly on all of the copies. Once you fill out the form, provide Copy B to the person you are reporting to the IRS by January , . Copy A of the -MISC form is intended for the IRS. You must file it by February , if you are sending the form by mail. If you prefer to file electronically, you have until March , . The IRS has made a major effort to cut down on red tape, but youll still find it with -MISC filings. In addition to filing the with the IRS, you must also file a form. The form is the Annual Summary and Transmittal of U.S. Information Returns form. It is one page and extremely easy to fill out. Although the IRS has an excellent web site, you cant download forms off of it. The official forms are still multi-layered carbon paper, which means you need to get a physical copy. The IRS should send you the forms in the mail. If they dont, you can order them off the IRS site or call the IRS to have them sent to you. If all else fails, you can usually find the forms at major post office and public library locations. If you fail to file s, the IRS will penalize you $ per . More than a few people have grumbled about filling out s so early in the year, but doing so has indirect benefits. You are forced to start organizing your records for .