1099 Forms

- Thursday, December 20th, 2018

It’s that time of year again! As 2018 draws to a close, we recommend planning ahead and starting to collect or verify social security numbers, EIN numbers and addresses of individuals to whom you are required to issue Form 1099. These forms must be prepared and sent to the recipients on or before January 31, 2019.   Please note! The Small Business Jobs Act of 2010 substantially increased Form 1099-related penalties, so we encourage you to take action now.

 Who is responsible for issuing Form 1099?

1)       If you are an individual who owns a trade or business, regardless of entity type (individual/sole proprietor, LLC, s-corporation, corporation, non-profit).

2)       If you are an individual who owns rental property which you operate for profit.

Who are the recipients of Form 1099?

Each business or non-employee to whom you have paid in the course of your trade or business during the year:

  1. a)       At least $10 in royalties or interest.
  2. b)       At least $600 in rents, including rentals of machines or equipment (not required if paid to a real estate agent).
  3. c)       At least $600 in services provided (i.e. landscapers, repair companies, maintenance providers, property managers, architects, engineers, photographers, entertainers, consultants, accountants, attorney fees).
  4. d)       At least $600 in payments to medical or healthcare providers.
  5. e)       At least $600 in prizes or awards.

The above list is not all-inclusive, but rather the more common types of payments that must be reported on Form 1099.

If you would like our assistance preparing your Form 1099s, please contact us and we will be happy to help you.