IRS forms are used in the United States as part of a system where revenue information is kept track of and analyzed. A 1099 tax form is part of the Internal Revenue Service and is used by freelance workers who earn and are paid at least $600 for the last twelve months.
Freelance workers who use 1099 tax forms have diverse occupations. Waiters, writers, actors, trainers, electricians, plumbers, designers etc., all must report types of income that is not regulated by payroll system. This is a requirement to work in the United States.
When freelance workers are hired by employers, many times they are asked to fill out an I-9 form, which is then kept and submitted when necessary. When the employer files taxes at the end of the tax year, the freelance employers must declare what they have been paid using the 1099 tax form and sometimes must pay taxes since no tax money has been taken from their wages all year long.
Filling out a 1099 tax form is a daunting task to many people who are not sure what all the boxes are for and do not wan to complete it incorrectly and then have to pay out more money than necessary. There are many resources online, in books and at consulting agencies that can help people fill out and complete the 1099 tax form.
Failing to fill out and file a 1099 tax form can be interpreted as someone refusing or neglecting to pay his or her taxes. There is an official Internal Revenue Services website with all the parameters and stipulations listed so people can take responsibility for their taxes.
Because so many companies and individuals file so many 1099 tax forms each year, in 2008, different versions of the form can out to be used depending on the circumstances. For example, a 1099-R form is used for Distributions From Pensions, Annuities, Insurance Contracts, IRAs and Retirement Plans while a 1099-SA form is used for Distributions From an HAS, Medicare Advantage MSA or Archer MSA. There are twenty-three versions of the 1099 tax form to use.
Because so many companies file these 1099 tax forms, new rules have been implemented to save paper. There are resources available to submit forms and file electronically, saving time, postage and paper. New processes are always being developed to make the process easier so the forms are filed correctly.
10:29 AM