Changes to 1099-Misc Preparation in Quickbooks Online
UPDATE: The Quickbooks Online team will be hosting a webinar on January 10th at 12:15 pm PT to cover some details on the recent 1099-Misc regulation changes. Further details can be found here: http://community.intuit.com/posts/join-us-for-a-webinar-jan-10-2012-on-the-1099-misc-regulation-changes
An early Happy New Year to all of our readers. I wanted to highlight a few changes to our 1099-Misc preparation workflow in preparation of filing season.
The IRS has issued new reporting requirements for tax year 2011 1099-MISC form. These requirements will exclude some forms of payments from the 1099-MISC form that will instead be reported on the new third party form 1099-K.
If you’ve made payments to vendors in tax year 2011, you’ll only need to report certain types of transactions and exclude others.
What does this mean to you?
- Payments to 1099 vendors made via credit card, debit card, or third party system such as PayPal will be excluded from the 1099-MISC calculations.
- On the Prepare 1099-MISC screen…
- Navigate to the the Prepare 1099 Forms preview. Note the column titled Total 1099 Payments Excluded. You can click on the total in this column to see an Excluded Payments by Vendor report which shows transaction details. This report can help you verify if payments should indeed be excluded.
For additional information on the new IRS requirements please visit the links below:
- Explanation of final regulations published by the IRS on the new payment card reporting requirements: http://www.irs.gov/govt/fslg/article/0,,id=226894,00.html
- IRS Third Party Reporting Information Center Link: http://www.irs.gov/taxpros/article/0,,id=225080,00.html
Prefer to electronically file your 1099 forms?
Well, you’re in luck! Intuit’s 1099 E-File Service allows 1099 forms to be filed electronically. For more information about the 1099 E-File Service, see this web page: http://payroll.intuit.com/support/kb/2000864.html.
Want to give it a try?
You can sign up for the E-file service here: https://onlinepayroll.intuit.com/welcome/1099.jsp
Quickbooks Online Team