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IRS Form 1099: Informational Returns - Part Two

Continued from: IRS Form 1099: Informational Returns - Part One

IRS Form 1099-K

Form 1099-K, Merchant Card and Third Party Network Payments reports those payments made with a credit card or payment card; this includes third party network transactions. The amounts that businesses report are specific to third party settlement organizations and $20,000 or more in networks transactions as well as 200 or fewer transactions. All amounts must be reported with regard to the merchant banks requirement. Amounts are reported by February 28. Statements to merchants are sent by January 31.

IRS Form 1099-LTC

Form 1099-LTC, Long-Term Care and Accelerated Death Benefits reports “payments under a long-term care insurance contract and accelerated death benefits paid under a life insurance contract or by a viatical settlement provider” (IRS.gov, “Form 1099-LTC,” 8/31/2013). All amounts are reported by February 28; statements are sent to recipients by January 31.

IRS Form 1099-MISC

Form 1099-MISC, Miscellaneous Income reports rent or royalty payments, prizes and awards not directly related to services as well as winnings on TV or radio shows. In general, the recipient must report amounts of $600 or more with the exception of $10 or more for royalties. However, there are additional reporting requirements. For example, filers must report $600 or more if their payments will fall under the categories of one or more of the following:

  • Payments to a physician, physician’s corporation, supplier of health and medical services
  • Payments for services performed for a trade or business by non-employees (i.e., fees to subcontractors or directors, golden parachute payments)
  • Fish purchases
  • Crop insurance proceeds
  • Gross proceeds paid to attorneys, which are due to the IRS by February 15th.

In addition, all filers must report amounts that derive from payments to crew members by owners and/or operators of fishing boats and Section 409A income earned from nonqualified deferred compensation plans (NQDCs). Lastly, filers must report substitute dividends and tax-exempt interest payments of $10 or more.

All amounts, unless otherwise indicated, must be reported by February 28. Statements are sent to recipients by January 31.

IRS Form 1099-OID

Form 1099-OID, Original Issue Discount reports original issue discounts of $10 or more by February 28. Recipients receive statements by January 31.

IRS Form 1099-PATR

Form 1099-PATR, Taxable Distributions Received From Cooperatives reports distributions from cooperatives that are passed through to patrons, which may include domestic production activities and certain pass-through credits. Amounts of $10 or more are reported by February 28 and statements are sent to recipients by January 31.

IRS Form 1099-Q

Form 1099-Q, Payments From Qualified Education Programs (Under Sections 529 and 530) reports earnings from qualified tuition programs and Coverdell ESAs. All amounts are reported by February 28 and statements are sent to recipients by January 31.

IRS Form 1099-R

Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. reports distributions earned from retirement or profit-sharing plans as well as any IRAs, insurance contracts, and IRA re-characterizations. Amounts[1] of $10 or more are reported by February 28 and statements are sent by January 31.

IRS Form 1099-S

Form 1099-S, Proceeds From Real Estate Transactions reports gross proceeds generated from the sale or exchange of real estate and certain royalty payments. Amounts of $600 or more are reported by February 28 and statements are sent to recipients by January 31.

Form 1099-SA

Form 1099-SA, Distributions From an HSA, Archer MSA, or Medicare Advantage MSA reports distributions from one or more of the aforementioned plans. All amounts are reportable by February 28 and statements are sent to recipients by January 31.

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[1] Payment types under this form include the following: annuities, charitable gift annuities, death benefits, direct rollovers, excess deferrals, IRA distributions, life insurance contract distributions, nonqualified deferred compensation, profit-sharing plan, SEP distributions, and SIMPLE distributions.

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