It’s 1099 time! As a reminder, 1099 forms are due to the recipient and to the IRS by January 31, 2018, with no extensions available. There will be penalties per form if you do not comply with the filing deadline. Here are some insights on the requirements.
It is required that you send a Form 1099 for:
• Any independent contractor (including individuals and LLCs) whom you hired to provide services and paid over $600 during a calendar year.
• Payments of rent over $600.
• Payments to an attorney totaling more than $600, regardless of whether the law firm is incorporated.
Please note that you are required to prepare a 1099 for any vendor that meets the requirements outlined above, whether you are able to obtain the contractor’s taxpayer identification number or not.
As you compile information for your 1099s, here are a few key points to keep in mind:
• It is required that you obtain a Form W-9 as verification of the correct taxpayer identification number for all individuals or entities that you make payments to.
• You do not need to issue any payments without the signed Form W-9, and you are required to backup withhold if the contractor refuses to complete and send you a signed W-9. For more information about this, please visit the IRS website.
• We recommend that you review your records now and obtain the necessary W-9s from your contractors ASAP to avoid delays in processing your forms.
tonneson + co would be glad to assist in preparing your 1099s. Please contact us at [email protected] if you are interested in this service or if you have any questions.