1099 Filings

As we near the end of the year,do not forget the IRS filing requirements for 1099’s. As you may be aware,  the IRS a few years ago added a question to all business tax returns which specifically asked if payments were made that would require filing Form 1099.

We want to remind you of your potential filing obligation of Form(s) 1099. You will be required to file Form 1099 if any of these apply (not all inclusive):

  1. Payments totaling $600 or more made to anyone providing a service who is not incorporated. For example, did you hire a lawn mowing company?
  2. Are you an individual who owns rental properties?  Did you hire any contractors and pay them $600 or more during the year?  For example, did you replace old carpet and hire a contractor to install the new carpet?
  3. Make Rent payments of $600 or more. For example, do you make a payment to rent office space or warehouse space for your business?

The first deadline for the 2014 Form 1099 reporting is January 31, 2015. There are various penalty assessments if you file late and even more significant penalties for non-compliance. If you feel you may have a filing requirement, you should request a completed Form W-9 from the contractor, attorney, or other payment recipient.

Although a few months away, the data you need for these forms has already been recorded.  Don’t let this filing requirement get past you.