Contents -

Form 1099-MISC

NOTE

ANY INSTRUCTIONS CONTAINED HEREIN ARE ADVISORY ONLY.

REFER TO IRS INSTRUCTIONS FOR OFFICIAL INFORMATION.



Form 1099-MISC - Miscellaneous Income

File form 1099-MISC, for each person to whom you have paid during the year: (a) at least $10 in royalties or broker payments in lieu of dividends or tax-exempt interest (b) at least $600 in rents, services (including parts and materials), prizes and awards, other income payments, medical and health care payments, crop insurance proceeds, cash payments for fish (or other aquatic life) you purchase from anyone engaged in the trade or business of catching fish, or, generally, the cash paid from a notional principal contract to an individual, partnership, or estate; (c) any fishing boat proceeds; or (d) gross proceeds paid to an attorney.  In addition, use Form 1099-MISC to report that you made direct sales of at least $5000 of consumer products to a buyer for resale anywhere other than a permanent retail establishment.  You must also report any federal income tax under the backup withholding rules regardless of the amount of the payment.

Account number (Required)
Enter any number assigned by the payer to the payee that can be used by the IRS to distinguish between information returns.  This number must be unique for each information return.  The account number is critical in the correction process, especially when more than one information return is filed for a payee.  MAG-FILER will automatically assign an account number if the field is blank.

TIN # (Required)
Enter the payee's valid 9-digit Taxpayer Identification Number (SSN or EIN, as appropriate).  Leave this field blank if the TIN# is unknown.   Any form filed containing an invalid identification number in this entry may be returned for correction.

SSN  (else EIN) (Required)
Check this box if the payee TIN # is a Social Security Number (SSN) of an individual.  Leave this box blank if the payee TIN # is an Employer Identification Number (EIN) of a business or an organization.

NOTE: Imbedded blanks, extraneous words, titles, and special characters ( i.e., Mr., Mrs., Dr., period [.], apostrophe [ ' ] should be removed from Payee Name Lines.  An ampersand (&) and a dash (- ) are the only acceptable special characters.  A comma ( , ) between last name and first name that is placed by MAG-FILER is also acceptable.

Name (Required)
Enter the name of the recipient belonging to the Taxpayer Identification Number (TIN).  If the TIN, is an SSN, enter as last name suffix, first, middle initial, e.g., Doe Jr., John A.).  If the TIN is an EIN, the name is entered as is.  Use the Second Name Field if additional space is required.

Second Name Field
If the payee name requires more space than is available in the name field, ENTER ONLY THE REMAINING PORTION OF THE NAME IN THIS ENTRY.  If there are multiple payees, this field may be used for those payees' names.  DO NOT USE THIS FIELD FOR ADDRESS INFORMATION. 

Address (Required)
Enter the recipient's mailing address.  This entry must not contain any data other than the recipient's mailing address.  The address is split into two fields.  Enter the main mailing address in the first field and the supplementary address in the second field on the right.

City (Required)
Enter the payee's city.   Do not enter state and zip code information in this entry.

State (Required)
Enter the abbreviation for the payee's state or foreign country.  You must use valid U.S. Postal Service state abbreviations for U.S. addresses.

Zip (Required)
Enter the payee's valid 9-digit zip code assigned by the U.S. Postal Service.

Rents
Amounts paid of $600 or more to recipients for all types of rents, such as real estate rentals paid for office space, machine rentals, and pasture rentals.

Royalties 
Gross royalty payments of $10 or more, before reduction for severance and other taxes that may have been withheld and paid.

Other Income 
Other income required to be reported of $600 or more to be reported on Form 1099-MISC that is not reportable in one of the other fields on the form.  For example: prizes, awards, punitive damages, payments to patients and members of the VA Department, deceased employee wages paid, payments to tribal members, and termination payments.

Fed Income Tax Withheld
Amounts for backup withholding.

Fishing Boat Proceeds
The share of all proceeds from the sale of a catch or the fair market value of a distribution in kind to each crew member of fishing boats with normally fewer than 10 crew members.  A fishing boat has normally fewer than 10 crew members if the average size of the operating crew was fewer than 10 on trips during the preceding 4 calendar quarters.

Med/health Care Payments
Payments of $600 or more made in the course of your trade or business to each physician or other supplier or provider of medical or health care services.  Include payments made by medical and health care insurers under health, accident, and sickness insurance programs.

Nonemployee Compensation
Payments made (1) To someone who is not your employee, (2) For services in the course of your trade or business (including government agencies and nonprofit organizations), (3) To an individual, partnership, estate, or, in some cases, a corporation, and (4) To the payee of at least $600 during the year.

Sub Pmt in Lieu of Dividend
Enter aggregate payments of at least $10 received by a broker for a customer in lieu of dividends or tax-exempt interest as a result of a loan of a customer's securities.  Substitute payment means a payment in lieu of (a) a dividend or (b) tax-exempt interest to the extent that interest (including OID) has accrued while the securities were on loan.

Direct Sales of 5000 or More to Recipient for Resale
Check this box if sales by the payer of $5,000 or more of consumer products to a person on a buy-sell, deposit-commission, or other commission basis for resale (by the buyer or any other person) anywhere other than in a permanent retail establishment.

Crop Insurance Proceeds
Crop insurance proceeds of $600 or more paid to farmers by insurance companies unless the farmer has informed the insurance company that expenses have been capitalized under section  278, 263A, or 447.

Exec Golden Parachute Pmt
Enter any excess golden parachute payments.  A excess parachute payment is the amount of the excess of any parachute payment over the base amount (the average annual compensation for services includible in the individual's gross income over the most recent 5 taxable years).

Payments to Attorney: 
The gross proceeds paid to an attorney in connection with legal services (regardless of whether the services are performed for the payer).

Sect 409A Deferral:
If the total is $600 or more, enter the amount of the total deferrals during the year for the nonemployee from all nonqualified deferred compensation (NQDC) plans subject to the provisions of section 409A.  The deferrals during the year include earnings on the current year and prior year deferrals.

Section 409A Income:
Enter the amount of current year and prior year deferrals that are includible in income under section 409A because the NQDC plan fails to satisfy the requirements of section 409A. Include the earnings on the deferrals.  Do not include amounts previously included in income.  Also, do not include amounts that are considered to be subject to a substantial risk of forfeiture for purposes of section 409A.

State
Enter two-lettered state abbreviation for state reporting.  MAG-FILER refers to this as State 1.
For state information; need not be completed for the IRS.  If reporting under the IRS Combined Federal State program, enter only  State 1 information per record.

State Income Tax Withheld
Amount of state income tax withheld.  For state information; need not be completed for the IRS.  If reporting under the IRS Combined Federal State program, enter only State 1 tax information per record.

State Income
Amount of state income.  For state information; need not be completed for the IRS.  If reporting under the IRS Combined Federal State program, enter only State 1 income information per record.

State
Enter two-lettered state abbreviation for state reporting.  MAG-FILER refers to this as State 2.
For state information; need not be completed for the IRS.  If reporting under the IRS Combined Federal State program, enter only State 1 information per record.

State Income Tax Withheld
Amount of state income tax withheld.  For state information; need not be completed for the IRS.  If reporting under the IRS Combined Federal State program, enter only  State 1 tax information per record.

State Income
Amount of state income.  For state information; need not be completed for the IRS.  If reporting under the IRS Combined Federal State program, enter only State 1 income information per record.

Special
This area may be used to record information for state or local government reporting or for the filer's own purposes. Enter "CFS" and state abbreviation if the working state is different from the residence for combined Federal/State filing.

2nd TIN Notice
Check the 2nd TIN notice box if notified twice by the IRS within 3 calendar years that the payee provided an incorrect taxpayer identification number (TIN).

Select Print
Check this box to select specific payees for printing.

Corrected Return
Check this box if this entry is a corrected return.  This is only used IF YOU HAVE ALREADY SUBMITTED MAGNETIC MEDIA FILING and wish to print or file corrected returns.  NOTE: The same account number reported on the original must also be on the corrected record.