What is a 1099 Form? 1099 Forms are information reports which must be issued to any person paid in the course of your business for services of at least $600. This includes among others; attorneys, accountants, landlords, contractors, consultants, landscapers, cleaning people and other individuals providing personal services.
Are there exceptions? 1099’s are not required to be issued to corporations. Note an LLC is not a corporation. Payments for tangible property do not require 1099’s. Neither do payments to tax exempt entities. Payments made through credit cards are also exempt. There are other exceptions as well.
When are these forms due to be filed? The IRS has changed the due dates for Forms 1099-Misc. They must be filed by January 31, as well as issued to the recipients. In order to comply with the new due date, we will be filing the copies to the IRS electronically.
What are the risks of not issuing 1099 Forms? The IRS announced several years ago a focus on failure to issue 1099 forms when applicable.
Please visit the Tax Resource Section of our website or contact one of our tax professionals if you have any questions or need assistance in preparing these forms, (973) 298-8500 or firstname.lastname@example.org.More Resources