Changes to Form 1099-G and 1099-MISC for FSA Producers and Vendors
Lexington, KY, August 28, 2012 –John W. McCauley, USDA Farm Service Agency (FSA) State Executive Director announced that calendar year 2012 brings several changes to the way FSA reports a producer’s farm program payments to the producer and to IRS. In past years, IRS Forms 1099-G would be issued to show all program payments received from the Farm Service Agency, regardless of the amount. "Starting with calendar year 2012, producers whose total reportable payments from FSA are less than $600 will not receive IRS Form 1099-G (Report of Payments to Producers)," said McCauley.
Additionally, producers who receive payments from more than one county will only receive one Form 1099-G if the total of all payments from all counties is $600 or more, McCauley said. "Producers who receive less than $600 in combined payments should consult a tax advisor to determine if these payments must be reported on their tax return," he said.
If the payments were subject to voluntary withholdings or subject to backup (involuntary) withholdings a Form 1099-G will be issued regardless of the total amount of the payments, McCauley said.The same changes will apply to producers and vendors who normally receive IRS Form 1099-MISC from FSA. For more information regarding IRS reporting changes, please contact your local County FSA office.