Learn how to file your taxes for the tax year 2020-2021 with Form 1099-MISC in this step-by-step guide.
Filing your tax forms is considered to be one of the most tedious tasks out there, especially if you are a business taxpayer. Unlike individual tax files, business taxpayers have to consider a lot of factors, such as their employees, the payments made to different vendors or businesses throughout the year, tax-exempt incomes, and other crucial factors.
While having an auditor by your side to take care of your tax forms is convenient, not all businesses can afford one. Small business taxpayers rely on user guides issued by the IRS (which may seem a bit complex for a lot of them to understand), the internet, and other reliable sources.
So, today, we are doing our bit to help business taxpayers like you to understand and learn how to file Form 1099-MISC to the IRS.
How to File Form 1099-MISC
If you are looking for box-wise instructions to read and file Form 1099-MISC, we suggest checking out this guide. It will help you understand each field of the form with some examples and particulars.
In this blog, however, we are going to discuss the very methods that business taxpayers use to file Form 1099-MISC.
Paper Filing
Form 1099-MISC (order it from the IRS here) is used by business taxpayers to report miscellaneous incomes and payments to the IRS. If your business paid at least $600 or more in rent, royalties, medical and health care payments, and other payments, then such payments have to be reported to the IRS through Form 1099-MISC.
Step 1: Request 1099-MISC Forms By Mail
You can request the IRS to mail the forms to you. Remember that you have to send such a request at least 30 days before the due date, i.e. 31st of January 2021. Use this link to request the IRS for your 1099-MISC forms and other forms.
You will receive the requested forms within 10 business days through US Postal Services. If the forms are not available when you are placing the order, you will receive the forms as soon as the forms are ‘back in stock’. This has been facilitated by the IRS so that taxpayers don’t have to place duplicate orders.
Step 2: Fill the 1099-MISC Form
This is a pretty self-explanatory step. Make sure that you fill the boxes according to the guidelines of the IRS. Have an accounting professional or an auditor by your side when filling the boxes because the IRS does not accept inaccurate reports.
Learn what must be reported on Form 1099-MISC here.
Step 3: Send Copies of the 1099-MISC Form to the Concerned Parties
The ordered forms include variable copies of the form, each of which is required to be sent to different parties, such as the IRS, the recipient, and the state tax department.
Send Copy A of 1099-MISC to the IRS
You are required to file and mail Copy ‘A’ of Form 1099-MISC to the IRS. You have to address the file to the IRS according to your principal business address. You can check the address to which you are required to mail your filings below.
Send Copy 1 of 1099-MISC to State Tax Department
You are required to file and mail Copy ‘1’ of Form 1099-MISC to the state tax department according to the state from which you are generating income or the one from which you are operating your business or have your business situated. This clause differs according to each state and state-specific filing requirements. You can check the state-wise filing requirements here and here.
Send Copy B of 1099-MISC to the Recipient
This extra step is encouraged by the IRS as it helps payers or issuers to be in consensus with their payees or recipients, respectively. By sending the Copy ‘B’ of 1099-MISC to the recipient, both the IRS and the recipient are informed about the payments you have made (officially), helping you be in the good books of the IRS.
Step 4: Postmark the Form File
Many businesses are always in a rush to mail their tax forms to the IRS. Often, they forget to postmark the mail, which leads to a delay in submission or worse, a missed due date.
If not postmarked, the IRS does not accept the mail. And there’s a valid reason for this. You see, the postmark, more or less, acts as a timestamp with date, time, and other chronological information.
This helps the IRS understand on which date you have sent the mail. In some critical cases, it also helps the IRS understand how serious you were about mailing your forms.
Step 5: Mail your Tax Forms to the IRS
| If your principal business, office or agency, or legal residence in the case of an individual, is located here | Then You Must Use This Address |
| Alabama, Arizona, Arkansas, Delaware, Florida, Georgia, Kentucky, Maine, Massachusetts, Mississippi, New Hampshire, New Jersey, New Mexico, New York, North Carolina, Ohio, Texas, Vermont, Virginia | Department of the Treasury Internal Revenue Service Center Austin, TX 73301 |
| Alaska, Colorado, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Montana, Nebraska, Nevada, North Dakota, Oklahoma, Oregon, South Carolina, South Dakota, Tennessee, Utah, Washington, Wisconsin, Wyoming | Department of the Treasury Internal Revenue Service Center P.O. Box 219256 Kansas City, MO 64121-9256 |
| California, Connecticut, District of Columbia, Louisiana, Maryland, Pennsylvania, Rhode Island, West Virginia | Department of the Treasury Internal Revenue Service Center Ogden, UT 84201 |
Non-U.S. Businesses:
If your legal residence or principal place of business, or principal office or agency, is outside the United States, then you must mail your file to the following address.
Address: Department of the Treasury Internal Revenue Service Center Austin, TX 73301
e-Filing
Due to health and safety concerns on the rise and limited staff concerns, the IRS is actively encouraging taxpayers (both individuals and businesses) to file their tax forms electronically.
If you want to e-file Form 1099-MISC for the tax year 2020-2021, the IRS recommends the FIRE (Filing Information Returns Electronically) system.
FIRE
If you want to e-file with the FIRE system, then you must be approved by the IRS for the same. Apply with Form 4419 so that you have enough time to be approved by the IRS and e-file your forms before the due date.
The IRS encourages taxpayers to submit their FIRE e-file applications at least 30 days before the deadline. However, the IRS is no longer accepting these applications since Form 4419 is supposed to be submitted on or by the 1st of November of the year.
If you missed the deadline, don’t worry. You can send an application in the next tax year again.
If you were approved (congratulations), then you can easily e-file your tax forms to the IRS starting the upcoming tax season in January 2021.
File Form 1099-MISC Using Tax1099
Business taxpayers like you are tired of the complex filing procedures. If you have Googled “how do I file 1099-MISC online” or looking for the easiest way to file your 1099-MISC forms to the IRS, then you are not alone.
Your search for convenient e-filing ends here. Businesses around the world are looking for smart tools that would allow them to e-file their forms without stress.
Fortunately, there IS a solution that allows businesses to e-file their tax forms to the IRS in 3 easy steps using Tax1099. Over 150,000 businesses are using this platform almost every tax year and enjoying the bliss of convenient e-filing.
Vouched by the global business news leaders, such as Forbes, Entrepreneur, Inc., Business Insider, and more, Tax1099 is America’s #1 e-Filing platform. Tax1099 is authorized by the IRS and it is federal and state compliant.
The electronic filing platform comes with sleek features, such as 256-bit Advanced Encryption Standard (AES) security, two-factor authentication, single sign-on, rights management, and more.
Tax1099 is integrated with seamless accounting and data management tools such as QuickBooks, Bill, Entrata, Sage Intacct, Fresh Books, Accounting Suite, and more to further deliver an easy e-filing experience to users.
You can sign up for free to get started and take a look at your powerful Tax1099 dashboard. Go to the ‘App Center’ and connect any of your existing accounting or vendor data management tools to sync your data in real-time to Tax1099’s secure database.
You can simply select a form, fill the forms with the required information, and validate the information before e-filing your forms to the IRS.
And that’s pretty much it.
Some things in life should be easy and filing your tax forms should be one of them. Get your free Tax1099 account and join 150,000+ business taxpayers like you who are enjoying convenient e-filing.
How are you going to file your tax forms this tax season? Comment below.
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