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The 1099 reporting requirements for 2011 have been somewhat confusing.  Who gets a Form 1099-Misc and who gets a Form 1099-K?  The IRS repealed the ruling that required all businesses to send a Form 1099-Misc to all vendors to whom they had paid, regardless of whether it was for services or goods.  So you only have to send a Form 1099-Misc to vendors who have been paid $600 or more for services in 2011.

But, there is a catch, only part of the Final Regulations was repealed.  There are two forms now for reporting payments, the Form 1099-Misc and Form 1099-K.  Form 1099-Misc is used for cash and check payments only.  Form 1099-K is used for all other types of payments, i.e. credit card, debit card, PayPal, etc.  You, as the business owner filing your own Form 1099’s, or a bookkeeper filing for your clients, DO NOT have to file any Form 1099-Ks.  You only need to file Form 1099-Misc for cash and check payments only.

This will be easier than you had hoped for if you are using QuickBooks 2012 as they have added a Wizard for the 1099-Misc reporting requirements.  Laura Madeira has written detailed instructions on how to set up the Wizard which I have included here: 1099 Tax Form Blog For QB 2012.  Laura will also give anyone who signs up for her website at www.quick-training.com  a free document!

Hopefully this blog helps clear up some of the confusion you may have about the 1099 reporting requirements.  Should you need help in setting up the Wizard, a Certified QuickBooks ProAdvisor will be glad to help you.

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