Preparing Your Tax Return(s) and Information Returns
Information Returns
Checklist for Information Returns
If you make or receive payments in your business,
you may have to report them to the IRS on information returns.
The IRS compares the payments shown on the information returns
with each person's income tax return to see if the payments were
included in income. You must give a copy of each information return
you are required to file to the recipient or payer. In addition
to the forms described below, you may have to use other returns
to report certain kinds of payments or transactions. For more
details on information returns and when you have to file them,
see the Instructions for Forms
1099, 1098,
5498,
and W-2G
Form
1099-MISC. Use Form 1099MISC, Miscellaneous Income, to
report certain payments you make in your trade or business. These
payments include:
- Payments of $600 or more for services performed
for your business by people not treated as your employees, such
as fees to subcontractors, attorneys, accountants, or directors.
- Rent payments of $600 or more, other than
rents paid to real estate agents.
- Prizes and awards of $600 or more that
are not for services, such as winnings on TV or radio shows.
- Royalty payments of $10 or more.
- Payments to certain crew members by operators
of fishing boats.
You also use Form 1099-MISC to report sales
by you of $5,000 or more of consumer goods to a person for resale
anywhere other than in a permanent retail establishment.
Form
1096. Use Form 1096 to Send Forms to the IRS. You must
send Copies A of all paper Forms 1099, 1098, 5498, and W-2G to
the IRS with Form 1096, Annual Summary and Transmittal of U.S.
Information Returns. Instructions for completing Form 1096 are
contained on Form 1096.
Form
8300. You must file Form 8300, Report of Cash Payments
Over $10,000 Received in a Trade or Business, if you receive more
than $10,000 in cash in one transaction, or two or more related
business transactions. Cash includes U.S. and foreign coin and
currency. It also includes certain monetary instruments such as
certain cashier's and traveler's checks and money orders. For
more information, see Publication 1544, Reporting Cash Payments
of Over $10,000 (Received in a Trade or Business).
Form
W-2. You must file Form W-2, Wage and Tax
Statement, to report payments to your employees, such as wages,
tips, and other compensation, withheld income, social security,
and Medicare taxes, and advance earned income credit (EIC) payments.
For more information on what to report on Form W-2, see the Instructions
for Form W-2.
Important References
Publication
334
Tax Guide for Small Business
Form
1099 MISC
Miscellaneous Income
Form
1096
Transmittal for 1099
Form
8300
Report of Cash Payments Over $10,000 Received in a Trade or Business
Form
W-2
Wage and Tax Statement
Instructions
for Form W-2
Publication
583
Starting a Business and Keeping Records
Publication
1544
Reporting Cash Payments of Over $10,000