The Internal Revenue Service recently finalized changes to tax forms for the year ending December 31, 2011, the changes will require the filing of additional information returns by numerous individuals and businesses. The deadline for filing the information returns is February 29, 2012, well ahead of the normal April deadline for individual taxpayers.

The Internal Revenue Service has always required individuals and businesses paying more than $600.00 in a calendar year to another person (i.e. independent contractor, not an employee who receives a W-2) to file a Form 1099-MISC to report the payments. Due to the belief there has been widespread noncompliance with this regulation, the Internal Revenue Service has added additional questions on the 2011 tax forms to find out who is, and is not, in compliance.

What does this mean for taxpayers? If you are an individual who files a Schedule C Profit or Loss From Business, Schedule E Supplemental Income and Loss, or Schedule F Profit or Loss From Farming, or you have a business that is a corporation or partnership, you will be required to answer the following questions, under penalty of perjury, on your return:

1) Did you make any payments in 2011 that would require you to file Form(s) 1099?
2) If, Yes, did you or will you file all required Forms 1099?

What do you need to do? Taxpayers must ensure that they have provided Forms 1099-MISC for anyone who has received more than $600.00 for services performed in 2011. To file a Form 1099-MISC you need the recipient’s name, address, identification number and amount paid. The IRS provides Form W-9 for collecting this information and can be found by clicking this link Form W-9.