Instructions For Form 1099-Misc - 2006 (Page 21 of 31) in pdf

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SEP, or SIMPLE contribution information must be furnished to

Post, on or before the January 31 due date, the applicable

the participant by May 31, 2007. However, Coverdell ESA

statement on a website accessible to the recipient through

contribution information must be furnished to the beneficiary by

October 15 of that year.

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April 30, 2007.

Inform the recipient, electronically or by mail, of the posting

and how to access and print the statement.

Trustees of a SIMPLE must furnish a statement of the

account balance and the account activity by January 31, 2007.

For more information, see Regulations section 31.6051-1.

For electronic furnishing of Forms 1098-E and 1098-T, see

For real estate transactions, you may furnish the statement

Regulations section 1.6050S-2. For electronic furnishing of

to the transferor at closing or by mail on or before January 31,

Forms 1099-R, 1099-SA, 1099-Q, 5498, 5498-ESA, and

2007.

5498-SA, see Notice 2004-10 that is on page 433 of Internal

Filers of Form 1099-G who report state or local income tax

Revenue Bulletin 2004-6 at

refunds, credits, or offsets must furnish the statements to

pdf.

recipients during January 2007.

Extension. You may request an extension of time to provide

See the Guide to Information Returns on pages GEN-18 and

the statements to recipients by sending a letter to Enterprise

GEN-19 for the date other information returns are due to the

Computing Center — Martinsburg, Information Reporting

recipient.

Program, Attn: Extension of Time Coordinator, 240 Murall

You will meet the requirement to furnish the statement if it is

Drive, Kearneysville, WV 25430. The letter must include (a)

properly addressed and mailed, or posted to a website, on or

your name, (b) your TIN, (c) your address, (d) type of return, (e)

before the due date. If the regular due date falls on a Saturday,

a statement that your extension request is for providing

Sunday, or legal holiday, the due date is the next business day.

statements to recipients, (f) reason for delay, and (g) the

A business day is any day that is not a Saturday, Sunday, or

signature of the payer or authorized agent. Your request must

legal holiday.

be postmarked by the date on which the statements are due to

the recipients. If your request for an extension is approved,

Electronic recipient statements. If you are required to furnish

generally you will be granted a maximum of 30 extra days to

a written statement (Copy B or an acceptable substitute) to a

furnish the recipient statements. If you are requesting

recipient, then you may furnish the statement electronically

extensions of time to furnish statements for 50 or more

instead of on paper. This includes furnishing the statement to

recipients, see the TIP under When To File on page GEN-4.

recipients of Forms 1098, 1098-E, 1098-T, 1099-A, B, C, CAP,

DIV, H, INT, G, LTC, MISC, OID, PATR, Q, R, S, SA, 5498,

5498-ESA, and 5498-SA. It also includes Form W-2G (except

N. Backup Withholding

for horse and dog racing, jai alai, sweepstakes, wagering pools,

and lotteries).

Interest (including tax-exempt interest and exempt-interest

dividends), dividends, rents, royalties, commissions,

Until further guidance is issued to the contrary, Form

nonemployee compensation, and certain other payments

1098-C may not be furnished electronically.

(including broker and barter exchange transactions, reportable

CAUTION

gross proceeds paid to attorneys, and certain payments made

If you meet the requirements listed below, you are treated as

by fishing boat operators) may be subject to backup withholding

furnishing the statement timely.

at a 28% rate. To be subject to backup withholding, a payment

must be a reportable interest (including tax-exempt interest and

Consent. The recipient must consent in the affirmative and

exempt-interest dividends) or a dividend payment under section

not have withdrawn the consent before the statement is

6049(a), 6042(a), or 6044 (if the patronage dividend is paid in

furnished. The consent by the recipient must be made

money or qualified check), or an “other” reportable payment

electronically in a way that shows that he or she can access the

under section 6041, 6041A(a), 6045, 6050A, or 6050N. If the

statement in the electronic format in which it will be furnished.

payment is one of these reportable payments, backup

You must notify the recipient of any hardware or software

withholding will apply if:

changes prior to furnishing the statement. A new consent to

1. The payee fails to furnish his or her taxpayer

receive the statement electronically is required after the new

identification number (TIN) to you,

hardware or software is put into service.

2. For interest, dividend, and broker and barter exchange

Prior to furnishing the statements electronically, you must

accounts opened or instruments acquired after 1983, the payee

provide the recipient a statement with the following statements

fails to certify, under penalties of perjury, that the TIN provided

prominently displayed.

is correct,

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If the recipient does not consent to receive the statement

3. The IRS notifies you to impose backup withholding

electronically, a paper copy will be provided.

because the payee furnished an incorrect TIN (“B” notice),

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The scope and duration of the consent. For example,

4. For interest and dividend accounts or instruments, you

whether the consent applies to every year the statement is

are notified that the payee is subject to backup withholding

furnished or only for the January 31 immediately following the

(under section 3406(a)(1)(C), “C” notice), or

date of the consent.

5. For interest and dividend accounts opened or instruments

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How to obtain a paper copy after giving consent.

acquired after 1983, the payee fails to certify to you, under

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How to withdraw the consent. The consent may be withdrawn

penalties of perjury, that he or she is not subject to backup

at any time by furnishing the withdrawal in writing (electronically

withholding under 4 above.

or on paper) to the person whose name appears on the

statement. Confirmation of the withdrawal also will be in writing

Except as explained in 2 above, reportable “other” payments

(electronically or on paper).

are subject to backup withholding only if 1 or 3 above applies.

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Notice of termination. The notice must state under what

Some payees are exempt from backup withholding. For a list

conditions the statements will no longer be furnished to the

of exempt payees and other information, see Form W-9,

recipient.

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Request for Taxpayer Identification Number and Certification,

Procedures to update the recipient’s information.

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and the separate Instructions for the Requester of Form W-9.

A description of the hardware and software required to

access, print, and retain a statement, and a date the statement

Examples of payments to which backup withholding does not

will no longer be available on the website.

apply include but are not limited to:

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Format, posting, and notification. Additionally, you must:

Wages.

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Ensure the electronic format contains all the required

Distributions from a pension, annuity, profit-sharing or stock

information and complies with the applicable revenue procedure

bonus plan, any IRA, an owner-employee plan, or other

for substitute statements to recipients in Pub. 1179.

deferred compensation plan.

GEN-11

Instructions For Form 1099-Misc - 2006 Page 21

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