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Form 1099 Filing Information

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This article is to ensure that we assist you with filing all the necessary documents for the 2014 tax year. In 2011, the IRS began asking on the tax forms if the taxpayer made payments that would require filing these forms and, if so, were the forms actually filed. In order to answer these questions correctly, we are notifying you now so that you have time to gather the required information.

A Form 1099-MISC (Miscellaneous Income) should be filed for each person/entity to which you have paid during the year:

  • At least $600 in rents, services (including parts and materials), prizes and awards, other income payments, medical and health care payments, crop insurance proceeds, cash payments for fish (or other aquatic life) you purchase from anyone engaged in the trade or business of catching fish, or, generally, the cash paid from a notional principal contract to an individual, partnership, or estate.
  • Gross proceeds of $600 or more paid to an attorney.
  • Amounts paid to corporations except for attorneys do not need to be reported.

In addition, use Form 1099-MISC to report direct sales of at least $5,000 of consumer products to a buyer for resale anywhere other than a permanent retail establishment. You must also file Form 1099-MISC for each person from whom you have withheld any federal income tax under the backup withholding rules regardless of the amount of the payment.

Helpful Hints:

  • 1099’s issued to individuals (those not incorporated or set up as partnerships) must list a social security number as their identification number along with the name for the social security number.  DBA’s are not used on 1099’s.
  • 1099’s issued to partnerships must list a federal EIN as their identification number.
  • Reimbursements for expenses to contractors or employees do not need to be reported on a 1099.
  • Names, addresses, and identification numbers should already be on file with you, as each vendor providing services should have filled out a Form W-9 before beginning work with you.  If you do not have a Form W-9 on your vendors, we strongly suggest you do it now.  In our experience, it is very tough to track people down for the required information.  You can obtain the Form W-9 from our office or on the IRS website.
  • The filing deadline to provide your vendors with 1099’s is January 31, 2015.

Should you have any questions or comments, please do not hesitate to contact us.  We are here to help!