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If you make payments to someone subject to backup withholding, you must file a 1099 to report the payments, regardless of the amount.

How to Obtain a Taxpayer Identification Number

The 1099 form requires tax identification numbers (social security number or employer identification number) for both you and the recipient. To obtain a payee’s tax ID number, supply the payee a Form W-9 “Request for Taxpayer Identification Number and Certification.” Be sure to request the tax ID before issuing payment because, as noted above, you will be required to deduct backup withholding if the recipient fails to provide the number. The W-9 form and instructions can be found at

Due Dates and Transmittal of Forms

The 1099-MISC form must be mailed to the recipient by the end of January, unless it is being used to report a payment to an attorney in box 14, in which case the form must be mailed by mid February. The forms are due to the IRS by the end of February and must be accompanied by a Form 1096 “Annual Summary and Transmittal of U.S. Information Returns.” The transmittal form is used to total the amounts reported on all of the 1099s you file for a given tax year. Filing late? The IRS will assess a penalty of $30 if you file within 30 days of the due date, $60 if you file more than 30 days after the due date but by August 1, and $100 if you file after August 1st or fail to file.

IMPORTANT NOTE! The 1099 and 1096 Forms must be ordered from the IRS in order to be in the proper scannable format. Although you can view these forms on the IRS website, do not print them out from the site as they are not in the proper format for filing purposes. You can order forms by calling 1-800-TAX-FORM (1-800-829-3676) or through this link:,,id=23108,00.html

Don’t forget that you might be required to file copy 2 of the 1099 with a state tax authority if both you and the payee live in the same state. Check with your state tax office to see if you have a filing requirement.

Diane Kelly is a retired CPA/tax attorney and the author of the humorous Death and Taxes romantic mystery series
from St. Martin’s Press.

Business Briefs

BookScan Reports Print Book Sales Down, Again

The unit sales of print were down 9% in 2012, which is a similar drop in 2010 and 2011. The overall percentage in three years is 16%. The largest number for print type in 2012 was in adult nonfiction, 13%, and juvenile nonfiction was 5.4%. The mass-market format was down 20.5%, less than the percentage in 2011.

Publishers Weekly

Reading Numbers Down or eReader Sales Up?

Pew Research Center’s October 15 – November 10 survey cites American adults doing less book reading. The responses are 3% less than last year. Adult 16 and older were reading 16% more ebooks than last year and 5% less print books. This paralleled a 15% increase in owning reading devices among the same group.

Publishers Weekly

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