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Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 28084
Experience:  Taxes, Immigration, Labor Relations
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I clean a local bank in town that will issue me a 1099 misc

Customer Question

I clean a local bank in town that will issue me a 1099 misc form at the end of the year. I want to take on some help but in order to do that and for that person to be covered under my liability insurance, I will have to issue them a 1099 form at the end of the year. Can I do that? Do I need to form a company in order to do that?
Submitted: 1 year ago.
Category: Tax
Expert:  Lev replied 1 year ago.
Hi and welcome to our site!Yes - if you have contractors - they may be covered under your liability insurance.However - you need to verify your insurance policy if that policy covers contractors.If you are not sure - you need to verify with your insurance agent.
Expert:  Lev replied 1 year ago.
Regarding form 1099MISC ...You are required to issue that form 1099MISC for each person to whom you have paid during the year at least $600 for services performed in the course of your business.That reporting amount includes parts and materials (if any) - and that amount is reported in box 7http://www.irs.gov/pub/irs-pdf/f1099msc.pdfFor payments made during 2015 - furnish Copy B of this form to the recipient by February 1, 2016.
Expert:  Lev replied 1 year ago.
For IRS filing...
File Copy A of this form with the IRS by February 29, 2016. If you file electronically, the due date is March 31, 2016.
Copy A of this form is provided for informational purposes only. Copy A appears in red, similar to the official IRS form. The official printed version of Copy A of this IRS form is scannable, but the online version of it, printed from this website, is not. Do not print and file copy A downloaded from this website;
So - when you file to the IRS - you either order forms from the IRS or purchase in a local store.
Or you may file electronically using third party providers.
You will need to use form 1096
http://www.irs.gov/pub/irs-pdf/f1096.pdf
and have all 1099MISC forms attached to that form 1096 when mailing to the IRS.
Let me know if you need any clarification this matter.

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