IRS issues new increased reporting requirments for 1099-Misc questions to Business in 2011!
In an effort to increase further compliance, effective for tax year 2011, for all Business Tax Returns (S-Corps, C-Corps, Partnerships and Schedule C, Sole Proprietorships), the IRS has included two new questions regarding 1099 Reporting.
1) If the Entity/Taxpayer made any payments that would require it to file a Form 1099?
2)If “Yes” to the above question, did or will the Entity/Taxpayer file all required Forms 1099?
In this manner, the IRS will have a full and complete picture of reporting entities that have not been issuing 1099's in 2011.