Letter to All Bodies of Elders and Assembly Hall Committees in the USA, 1996-12-07: Issuanee of Forms I099-MISC and 1099-INT
25 COLUMBIA HEIGHTS, BROOKLYN, NEW YORK 11201-2483, U.S.A. PHONE (718) 625-3600 December 7, 1996
TO ALL BODIES OF ELDERS AND ASSEMBLY HALL COMMITTEES IN THE UNITED STATES
Re: Issuance of Forms 1099-MISC and 1099-INT
Dear Brothers:
From time to time, congregations and Assembly Halls contract the services of sub-contractors or others, such as to assist with specialized work in connection with Kingdom Hall construction or snow removal. According to instructions from the Internal Revenue Service (IRS), it is necessary to file Form 1099-MISC for each person who is paid at least 600 in rents, services (including parts and materials), and other income in any one year. Though congregations and Assembly Halls are considered nonprofit for tax reporting purposes, this does not absolve them of the need to file the above-mentioned forms when paying individuals. The recipient should also be alerted to the fact that the congregation or Assembly Hall will be issuing Form 1099 MISC should he be paid more than 600 during the year. This means he will be responsible to pay any and all income tax on his earnings.
Similarly, congregations or Assembly Halls that pay interest on funds loaned by individuals must file Form 1099-INT to report amounts of interest over $10 in any year. While congregations and Assembly Halls are under no obligation to report the amounts of interest they pay to the Society since the Society is a tax-exempt organization, interest payments to individuals should be reported.
Forms 1099-MISC and 1099-INT and their accompanying instructions may be obtained from the Internal Revenue Service Center locally. Generally, copies of these must be given to the recipients by January 31 of the following calendar year. All should be prompt and thorough in caring for this matter.—Rom.13:1.
We take this opportunity to thank you for your hard work in behalf of Kingdom interests and send an expression of our heartfelt Christian love.
Your brothers,
Watchtower B. V. S. Society OF NEW YORK, INC.
cc: Regional Building Committees Traveling Overseers