New IRS 1099 Reporting Regulations

If you have paid 1099 contractors or vendors in the past year using payment forms other than cash or check, you need to be aware that the IRS has issued new reporting regulations for tax year 2011 1099-MISC form.

These regulations will exclude payment types such as credit cards, debit cards, and those from third party payment networks, like PayPal, from the 1099-MISC form that will instead be reported on the new third party form 1099-K. For more information on the new regulations and how they impact your business click here.

To help comply with the new regulations using your QuickBooks 2009, 2010 or 2011 you have three options to choose from:

In tax year 2011, if you only paid a few 1099 vendors with credit cards, debit cards, or third party payment networks, like PayPal, you might consider the manual option.

1. Manually find and exclude the appropriate payments by following the steps here.

OR

If in tax year 2011, you paid more than a few 1099 vendors with credit cards, debit cards, or third party payment networks, like PayPal, we suggest purchasing the QuickBooks 1099 Assistant or upgrading to QuickBooks 2012 to access the updated 1099 Wizard.

2. Purchase the QuickBooks 1099 Assistant (a downloadable app) to help identify and exclude the appropriate payments from your QuickBooks 1099-MISC forms; the Assistant will supplement the existing QuickBooks 1099 printing and filing features. To find out more about the QuickBooks 1099 Assistant and how to purchase it for $0.99, click here.

OR

3.Upgrade to QuickBooks 2012 which has, among many other features, an updated 6-step 1099 Wizard that will help identify and exclude the appropriate payments from your QuickBooks 1099-MISC forms.

For more information on the updated 1099 Wizard, click here.

To purchase QuickBooks 2012 and save money on QuickBooks click here.