The IRS is trying to make complying with the new lower filing requirement easier. Starting with the 2023 filing year, if a company has 10 information returns to complete, they will be required to electronically submit them to the IRS. This total is an aggregate number of all the information returns. An information return includes 1099s, withholding statements, income tax returns, etc. (see T.D. 9972 for a full list).
The IRS introduced E-file with IRIS as one additional way to E-file 1099s. For more information, visit irs.gov/filing/e-file-forms-1099-with-IRIS or go to irs.gov and in the search bar type in IRIS.
In general, any service recipient who, in the course of his or her trade or business, makes payments totaling $600 or more to a sole proprietor, partnership or limited liability company (other than a corporation) for services rendered in a calendar year, must file an information return on form 1099. Form 1099 should also be used to report rent payments for rental of real or personal property if $600 or more.
Payments of at least $600 made to attorneys are reportable on form 1099 whether or not the recipient is incorporated. The exemption for corporations also does not apply to providers of medical or health services (report these payments in box 6).
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To view the full video of Guide to Basic Reporting Requirements for 1099s: MISC & NEC, click here.
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