Regardless
of its tax-exempt status, a PTA may have to complete
an IRS 1099-MIsc Form if it made payments of $600 or more in a calendar year
(January-December) to any
individual or unincorporated business
as payments for services. The PTA should
have all independent contractors
(individuals) or businesses complete
an IRS W-9 Form. The W-9
will indicate if a PTA needs
to file a 1099-Misc and will also provide the information
to
complete the form. The completed
1099-Misc Form must be sent
to the individual or business by January 31 for the preceding year.
By February 28, a PTA will need
to complete an IRS 1096 Transmittal
Form and submit copies of all 1099s to the
IRS. More information is available on the IRS website www.irs.org.
Generally speaking, a 1099-Misc must be
filled out if the person or business you paid is an independent
contractor. This means your PTA contracted
for a particular outcome, but
did not supervise the manner and means by which
it was achieved. If the person
was directly supervised
by the PTA, then he or she was an employee, and other requirements apply. You can
obtain more information from the IRS
website www.irs.gov.
