Important 1099 Requirements
- An individual, landlord or business must prepare a 1099 for any service provider, excluding corporations, that has paid more than $600 during the year. **Any amount paid to attorneys requires a 1099 to be filed.
- Service provider’s examples: Repairmen (plumbers, electricians, painters, gardeners), attorneys, bookkeepers, landlords, outside/independent, and contractors.
- An individual, landlord or business that pays interest to an individual or business, excluding corporations, will need to file a 1099. There is not a minimum.
- An individual or business has to attest, on their tax returns, under penalties of perjury, that they have filed all the necessary 1099’s or that they did not have any service providers that they were required to send them to. There are very stiff penalties for non-filing, beginning 2016. $50 per 1099 not issued, plus 20% of the amount that should have been reported.
- An individual or business needs to send their 1099’s to their service provider and to the IRS by 1/31/2017.
For more information regarding 1099 requirements, please click on the following link:
How to File
- Obtain a blank 1099 form (which is printed on special paper) from the IRS or an office supply store.
- Fill out the 1099. Each Form 1099 comes with 5 copies, so make sure to write or type on the top copy so it transfers down onto each copy, like carbon paper.
- Send Copy A to the IRS, Copy 1 to the appropriate state tax agency, Copy B and Copy 2 to the income’s recipient (they get two copies so they can attach one to their return and keep one), and keep Copy C for your records.
- After you have filled out all of your 1099 forms for the year, you need to fill out a Form 1096 as well. Form 1096 summarizes all of your 1099 forms and is filed with the IRS. The mailing address is on the last page of the Form 1096 instructions.
Important information needed to file the 1099’s
- Legal name of entity or Individual who provided service
- Federal I.D. number or Social security number (if they do not have a Federal I.D. number)
- Address of business
- Amount that was paid to them
*We have attached the W-9 that you can send to your vendors to fill out
**If you cannot get all the information, you will still need to file the form with the information you do have. This will reduce the amount of the penalty.
If you would like for us to prepare your 1099’s for you, we will need all the W-9’s (attached) filled out completely by your vendors who meet the above requirements by January 15, 2017
Our Fees: $50 client set-up (one-time) and $10 per 1099 issued