The deadline to e-file 1099 forms to the IRS is now January 31.
Penalties start at $50 per 1099 on February 1!
If you paid anyone $600 or more during 2019 (on behalf of your business or rental property), you might need to issue IRS Forms 1099-MISC to those businesses and/or individuals.
When you must issue a 1099-MISC:
The Internal Revenue Service requires you to report certain payments you make as part of your business. If the following four conditions are met, you must generally report a payment as non-employee compensation.
You made the payment to someone who is not your employee;
You made the payment for services in the course of your trade or business (including government agencies and nonprofit organizations);
You made the payment to an individual, partnership, LLC, estate, or, in some cases, a corporation; and
You made payments to the payee of at least $600 during the year.
What should you include on Form 1099?
Generally, you do not have to issue a Form 1099-MISC for non-employee compensation paid to a corporation. Payments to corporations are reported only if they are for medical, health care, veterinary, legal or fishing activities. Payments for rent, made by your business, are also subject to 1099 reporting.
You must include the payee's Social Security Number or Employer Identification Number and legal address on the Form 1099. If you do not have this information, have the payee complete Form W-9 and return it to you.
As always, please don't hesitate to contact us if you need assistance.
While we are, of course, available to provide you with any business, accounting or tax services, the information contained herein is general in nature; any advice regarding those services should not be construed as tax advice and is not intended as a thorough, in-depth analysis of specific issues, a substitute for a legal, accounting or tax advice or opinion, nor is it sufficient to avoid tax-related penalties to the reader. The reader also is cautioned that this material may not be applicable to, or suitable for, the reader's specific circumstances or needs, and may require consideration of non-tax and other tax factors if any action is to be contemplated. The reader should contact Strive Tax & Accounting, LLC or other tax or legal professional prior to taking any action based upon this information. Strive Tax & Accounting, LLC assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect the information contained herein.