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Forms 1099 and Income Tax Withholding Sponsored by the Washington Association of School Business Officials Annual Conference May 3, 2013, Vancouver, Washington Tax Law Changes, effective 2013 Affordable
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How to fill out form 1099 backup withholding

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How to Fill Out Form 1099 Backup Withholding:

01
Obtain a copy of Form 1099 from the Internal Revenue Service (IRS) website or a tax software provider. The form can also be requested by calling the IRS directly.
02
Fill in the payer’s information in Box 1. This includes the payer’s name, address, and taxpayer identification number (TIN). The TIN can be either an employer identification number (EIN) or a social security number (SSN).
03
Include the recipient's information in Box 2. This includes the recipient’s name, address, and TIN.
04
Indicate the total amount of backup withholding in Box 4. Backup withholding is required when a recipient fails to provide a correct TIN or fails to report the income correctly on their tax return. The payer must withhold a certain percentage of the payment and remit it to the IRS.
05
Specify the reason for backup withholding in Box 5. The most common reason is if the recipient provided an incorrect TIN or failed to report the income.
06
If the payer is exempt from backup withholding, check the appropriate box in Box 6.
07
Enter the amount of withheld income in Box 7. This is the total amount of backup withholding that was deducted from the payment.
08
Complete any additional boxes as required for your specific situation or according to instructions provided by the IRS.
09
Retain a copy of Form 1099 for your records and provide a copy to the recipient by the due date.

Who Needs Form 1099 Backup Withholding?

01
Payers who make payments to recipients and are required to withhold income taxes.
02
Recipients who have incorrect TINs or fail to report the income on their tax returns accurately.
03
Payees who receive income subject to backup withholding and need to report this information to the IRS.
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Form 1099 backup withholding is used by businesses to report payments made to vendors or independent contractors. It is used when the payee does not provide a tax identification number (TIN) or the IRS notifies the payer that backup withholding is required.
Any business that makes payments to vendors or independent contractors and meets the backup withholding criteria outlined by the IRS is required to file form 1099 backup withholding.
To fill out form 1099 backup withholding, you will need to provide information about the payments made to vendors or independent contractors, including their name, address, tax identification number (TIN), and the amount of the payment. You must also indicate if backup withholding applies.
The purpose of form 1099 backup withholding is to ensure that the IRS receives the appropriate amount of tax revenue from payments made to vendors or independent contractors, especially when TIN information is missing or incorrect.
Form 1099 backup withholding must include the name, address, TIN, and payment amount for each vendor or independent contractor, as well as an indication of whether backup withholding applies.
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