If an individual or company pays individual, partnership, estate, or corporation (in some cases) taxes, they are most likely required to file an Information Return with the IRS.
The most common types of payments requiring an Information Return filing include payments for services performed by someone who is not a company employee, payments to attorneys, rents, royalties, and interest payments.
Other reporting situations which would result in a filing requirement are: mortgage interest (including points) received, interest income paid, the release of debt secured by property or abandonment of property, and sale or exchange of real estate.
Information Returns are required to be filed if the amounts reach the minimum amounts, or greater, as noted below. Any amounts under the minimum do not have a filing requirement.
Most Information Returns must be postmarked to recipients by January 31 and electronically filed with the IRS by March 31. Extensions of time to postmark and file Information Returns can be requested. For more information regarding Information Returns filing and extensions, review the IRS 2021 General Instructions for Certain Information Returns.
Non-employee Compensation (1099-NEC): generally $600 or more
Miscellaneous Information* (1099-MISC): generally $600 or more
*Name change from Miscellaneous Income to Miscellaneous Information
Interest Income (1099-INT): generally $10 or more
Acquisition or Abandonment of Secured Property (1099-A): no minimum / all amounts
Cancellation of Debt (1099-C): $600 or more
Proceeds from Real Estate Transactions (1099-S): generally $600 or more
Information Return electronic filing is available to anyone through the IRS Filing Information Returns Electronically (FIRE) system. Filers who have 250 or more information returns must file them electronically. For more information and to enroll, go to the IRS FIRE web page.
Author, Noelia Gomez Osorio
Tax Supervising Senior
Spiegel Accountancy
Any accounting, business or tax advice contained in this communication, including attachments and enclosures, is not intended as a thorough, in-depth analysis of specific issues, nor a substitute for a formal opinion, nor is it sufficient to avoid tax-related penalties.