Form 1099-DA: A Practical Actionable Playbook for Tax Professionals

Key Takeaways

• Form 1099-DA reports non-employee income from direct sales of consumer products.
• The new form is required for tax years beginning after December 31, 2020.
• Filing and furnishing deadlines are February 28 (paper) or March 31 (electronic) for the recipient copy, and January 31 for the payer copy.

Understanding Form 1099-DA

Form 1099-DA is a new information return required by the IRS to report non-employee income from direct sales of consumer products. This includes sales made by independent contractors or non-corporate lessors.

Who Needs to File Form 1099-DA?

Payers who have made direct sales of consumer products and have paid non-employees at least $600 during the calendar year are required to file Form 1099-DA.

Filing and Furnishing Form 1099-DA

Filing Deadlines

Deadline	Filing Method	Recipient Copy	Payer Copy
February 28	Paper	Yes	No
March 31	Electronic	Yes	No
January 31	Electronic	No	Yes

Form 1099-DA Checklist

• Gather recipient's name, address, and Taxpayer Identification Number (TIN).
• Report the total amount paid for direct sales of consumer products.
• File Form 1099-DA with the IRS.
• Furnish a copy of Form 1099-DA to each recipient.

Frequently Asked Questions

1. Q: What are consumer products for the purposes of Form 1099-DA?

   A: Consumer products are items intended for personal, household, or family use.

2. Q: What if I don't have the recipient's TIN?

   A: You must ask for the recipient's TIN. If you can't get it, you may have to backup withholding.

3. Q: Can I file Form 1099-DA electronically?

   A: Yes, you can file Form 1099-DA electronically using the IRS's FIRE system or approved software providers.