Critical Notice: Changes to IRS Reporting Regulations for 1099-Misc Tax Year 2011

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. Those 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 QuickBooks for Mac 2010 or 2011 you have two 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, we suggest the manual option(#1).

In tax year 2011, if you paid more than a few 1099 vendors with credit cards, debit cards, and third-party payment networks, like PayPal, we suggest upgrading to QuickBooks 2012 to access the updated 1099 Wizard.

In addition to the 1099 reporting changes, the IRS also changed the layout of the physical 1096 form for tax year 2011. QuickBooks for Mac 2009 will not be updated to reflect that change and you will need to fill out the form manually. Learn more.

If you have other questions and are unable to find the answer you need on Little Square or on our Support Site, please contact us at (888) 222-7276.