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About IRS 1099-MISC 2013

IRS Form 1099-MISC is a tax document that is used to report income earned by non-salary workers, freelancers, and independent contractors. It is a crucial form that both businesses and individuals need to be familiar with to ensure proper tax reporting. Here are some key points about IRS Form 1099-MISC for the year 2013: 1. Purpose of Form 1099-MISC: The primary purpose of Form 1099-MISC is to report the total income paid to an individual or business for services rendered during the tax year. It is used by the paying entity (such as a company or individual) to report non-employee compensation to the IRS and the recipient of the income. 2. Filing Deadline: For the tax year 2013, Form 1099-MISC must be filed with the IRS by February 28, 2014, if filing on paper. If filing electronically, the deadline is extended to March 31, 2014. 3. Income Threshold: Form 1099-MISC must be filed when total payments to an individual or business exceed $600 during the tax year. If payments are less than $600, it is generally not required to file a Form 1099-MISC, although there may be exceptions for certain types of income. 4. Reporting Box 7: Box 7 of Form 1099-MISC is specifically for reporting non-employee compensation. This typically includes fees, commissions, or other types of income received by independent contractors or freelancers. Make sure to accurately report the amount paid in this box, as it is critical for both the recipient's and the IRS's tax calculations. 5. Copy Distribution: Form 1099-MISC consists of multiple copies, each with a specific distribution purpose. Copy A must be filed with the IRS, Copy B is for the recipient, and Copy 2 is for the recipient's state income tax return if applicable. 6. Correcting Errors: If a mistake is made or changes need to be made to a previously filed Form 1099-MISC, a corrected form (Form 1099-MISC-C) should be filed as soon as possible. 7. Penalties for Non-Compliance: Failure to file accurate and timely Form 1099-MISC can result in penalties imposed by the IRS. The penalties vary depending on the time frame of non-compliance and the size of the business. It is important to consult with a tax professional or the IRS website for the most up-to-date and accurate information regarding IRS Form 1099-MISC for the tax year 2013.

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