Monday, January 23, 2012

New Lines on Schedules C,E and F

In order to better track the 1099 reporting requirement, the IRS has added two new lines to all business forms, including those for the Individual Income Tax Return.

First new line: Did you make any payments in 2011 that would require you to file Form(s) 1099?

Second new line: If "Yes," did you or will you file all required Forms 1099?

The catch is, if you wait until after January 31, 2012 to file these forms, you are late and can be assessed a penalty. It won't do much good to file them in March, when you file your individual or business tax returns. And, now that this question is a part of our returns, you can't ignore them as we all sign our returns under penalty of perjury, which by the way, is a felony! I can't stress the importance of timely compliance enough!

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