File Your 1099s

In General Terms

            If you or your company made payments: (1) to pay unincorporated logging or trucking contracts for cut-and-haul services or (2) to pay unincorporated landowners for pay-as-cut (by the unit) stumpage, you should be filing 1099's.

1099MISC

            All persons engaged in a trade or business who make payments to others (generally excluding corporations) must submit 1099 MISC forms to those companies that you paid $600 or more in the last calendar year, regardless of your fiscal year, for independent contractors, for rents, services (including parts & materials), prizes or awards, other income payments, etc.

            You also must report all gross receipts paid to an attorney regardless of the amount.

            These forms must be mailed to the recipients by January 31^st and filed with the IRS by February 28^th.  There is a $50 fine for each form not filed.

            Direct guidance:  www.irs.gov/pub/irs-pdf/i1099m03.pdf

1099S

            A 1099S must also be filed on all “pay-as-cut” (by the unit) stumpage payments to unincorporated landowners if payments during the year totaled $10.00 or more.

            These forms must be mailed to the recipients by January 31^st and filed with the IRS by February 28^th.  There is a $50 fine for each form not filed.

            Do I need to file a 1099-S for stumpage purchased from a landowner on a lump sum basis (in which all standing timber is purchased)?  No

            Do I need to file a 1099-S for wood purchased at my mill gate (“gatewood”)?  No

            Do I need to file a 1099-S for stumpage purchased from a landowner on a pay-as-cut basis (payment by the board-foot, cord, or some other unit)?  Yes

            Direct guidance:  www.irs.gov/pub/irs-pdf/i1099s.pdf