What’s new on this year’s 1099s? - 2 Feb 2009

What’s new on this year’s 1099s

http://www.financeregs.com/whats-new-on-this-years-1099s/

February 2, 2009 by Carol Katarsky

Posted in: 1099s, Best practices, Communication, IRS regs, Latest news & views, Tax compliance

The good news: The form itself is mostly unchanged. But there are a few administrative changes you need to be aware of. File this tipsheet away so you have it handy when you start the next year-end process. You’ll need to be on top of these changes:

• There’s a new due date for sending 1099s to payees. If you’re
  reporting gross proceeds paid to an attorney (Box 14) or substitute
  payments (Box 8 ) the deadline is now Feb. 15 for statements due after
  2008.


• Death benefits paid to the estate of a deceased employee are now
  reported on 1099-MISC, not the 1099-R. That’s true whether the payment
  comes from a qualified or nonqualified compensation plan.


• You are not required to complete Box 15a in relation to deferrals paid under nonqualified plans subject to Sec. 409A.


• If you make military differential payments after 2008 those
  payments should be reported on the W-2, not the 1099. This applies to
  payments made to former employees on active duty for more than 30 days.