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 Who gets a Form 1099-Misc and who gets a Form 1099-K? The IRS repealed the ruling that required all businesses to send a Form 1099-Misc to all vendors to whom they had paid, regardless of whether it was for services or goods.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But, there is a catch, only part of the Final Regulations was repealed.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.