Changes to 2011 1099-misc reporting requirements

If you're a business owner, there's a good chance that you'll be preparing 1099-misc slips sometime this month. There are some important changes to 1099-misc reporting requirements.

If you made payment to vendors via a third party payment system such as google checkout, credit-card, debit card, or paypal, do not include these amounts on the 1099-misc you issue to your vendor. The third party company will be responsible for reporting these payments on a form 1099-K.

Here's a link to the IRS instructions.

In most cases, 1099's should be issued to the recipient by January 31.

2012 Standard Mileage Rates

Happy new year!

Here are the 2010 Standard Mileage Rates:

Beginning on Jan. 1, 2012, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:

• 55.5 cents per mile for business miles driven
• 23 cents per mile driven for medical or moving purposes
• 14 cents per mile driven in service of charitable organizations

The rate for business miles driven is unchanged from the mid-year adjustment that became effective on July 1, 2011. The medical and moving rate has been reduced by 0.5 cents per mile.