Frequently Asked Questions - Form 1099 What is a Form 1099? A form 1099 is used to report a variety of unique income payments to the IRS. This form is typically used when the taxpayer has received income from sources other than a wage-paying job. There are eleven different variations to the 1099 forms themselves depending on the type of income being reported. What Variations of Form 1099 Does ExpressTaxFilings Support? At this time the ExpressTaxFilings system supports filing forms 1099-MISC, 1099INT, 1099-DIV and 1099-OID. Who Must File a Form 1099? The payer is responsible for filing the form 1099 with the IRS. The payer is also responsible for providing the recipients of the income with copies of the completed 1099. Generally a 1099 is only required if the payment amount is greater than $600 during the calendar year. What are the Due Dates Associated with Form 1099? The due date to furnish copies of form 1099 to recipients is generally by January 31 of the year following the year in which the 1099 is in reference to. For the 2012 tax year the due date is January 31, 2013. If you are reporting payments in either boxes 8 (Substitute payments in lieu of dividends or interest) or 14 (Gross proceeds paid to an attorney) of form 1099-MISC the due date for furnishing the form to recipients is extended to February 15. This due date also applies to statements furnished as part of a consolidated reporting statement. For the 2012 tax year this due date is February 15, 2013. The payer is required to file Form 1099 with the SSA (Social Security Administration) by the last day of February of the year following the year in which the 1099 is in reference to if the forms are paper filed. If the forms are e-filed the due date is automatically extended to the last day in March of the year following the year in which the 1099 is in reference to (for the 2012 tax year the due date is April 1, 2013 because March 31, 2013 falls on a weekend). What Type of Payments Does Form 1099 Include? Money paid to independent contractors by businesses, royalties, other non-
employee work, lottery winnings, estate payments and legal settlements are all just a few examples of the types of income that are reported on the form 1099. How Do I Obtain a TIN (Taxpayer Identification Number) For The Party I Made Payments To For Form 1099? You may use Form W-9, Request for Taxpayer Identification Number and Certification. When is an Account Number required on a 1099 Form? The account number is required if you have multiple accounts for a recipient for whom you are filing more than one information return of the same type. What is a WHFIT? A WHFIT is a Widely Held Fixed Investment Trust. What is a TIH? A TIH is a Trust Interest Holder. What is a REMIC? A REMIC is a Real Estate Mortgage Investment Conduit. This is a type of special purpose vehicle used for the pooling of mortgage loans and issuance of mortgagebacked securities. They assemble mortgages into pools and issues pass-through certificates, multiclass bonds similar to a collateralized mortgage obligation (CMO), or other securities to investors in the secondary mortgage market. Mortgage-backed securities issued through a REMIC can be debt financings of the issuer or the sale of assets. This would be reported on form 1066. They may also be asked to file form 8811 within 30 days after their startup date. What is a FASIT? A FASIT is a Financial Asset Securitization Investment Trust. This is a financing tool that allows for the securitization of non-mortgage assets and typically involves debt obligations with short maturities such as credit card receivables, home equity loans and car loans. FASIT is similar to REMIC. What is a CDO? A CDO is a Collateralized Debt Obligation. This is an investment-grade security backed by a pool of bonds, loans and other assets. CDOs do not specialize in one type of debt but are often non-mortgage loans or bonds. CDOs are unique in that
they represent different types of debt and credit risk. The different types of debt are typically referred to as ‘tranches’ or ‘slices’. Some of the examples of issuers of CDOs are Merrill Lynch, Citi, UBS, Wachovia, etc.