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Form 1099 Compliance

Posted by Admin Posted on Feb 02 2018

Form 1099 Compliance - Generally speaking you are required to prepare Form 1099's for payments made in the ordinary course of your trade or business to any unincorporated business or individual that you have paid more than $600.00 per calendar year for services, and/or for services combined with material use, such as is the case when paying a contractor or subcontractor. In addition, payments of $600 or more to attorneys or health care providers are reportable, even if the recipient is incorporated. The filing deadline for the Form 1099, which goes to the service providers, and the Form 1096, which summarizes the Form 1099 information and is remitted to the IRS, is the 31st of January. Late filing penalties of $50 per Form 1099 filed within 30 days of the deadline, or $100 per form 1099, if filed after January 31st but before August 1st may be applied by the IRS. Please refer to this Summary of Form 1099 Reporting Requirements for additional information.  Also, as a business owner remember to provide service providers with a Form W-9 when they are paid during the year, so you’re ready to meet the Form 1099 filing requirements at year end.  Please contact us if you have any questions.  Mike and Staff