Form 1099 Reminder
By Nick Porto, Tax Senior Manager
The purpose of this notice is to remind our readers that the fast-approaching deadline to file Forms 1099 is January 31. The IRS has increased its efforts to ensure that all necessary 1099s are being filed by adding questions to income tax returns (Forms 1120, 1120S, 1065) asking taxpayers to indicate whether Forms 1099 were required and whether or not those forms were filed. Interest and penalties for late filings or non-filings are expected.
Generally, unless paid to an incorporated entity, total payments of at least $600 for rents, services (including parts and materials), prizes and awards, other income payments, medical and health care payments, and crop insurance proceeds are required to be reported to the IRS on Form 1099-MISC. Reportable payments are those made during the course of conducting a trade or business; so non-self-employed individuals likely will not need to file. There are many other forms in the 1099 series, such as Forms 1099-INT (for interest), 1099-DIV (for dividends) and 1099-K (for certain credit card and related transactions). This alert is not intended to provide all the rules related to filing these forms, but instead serve as a reminder of the nearing filing deadline. Much more information, including a comprehensive list of 1099 forms and their purposes, may be found here.
Baker Newman Noyes has an experienced team that can help prepare these forms for you, and many payroll companies provide this service as well. Finally, note that as an LLC rather than an incorporated entity, payments for services made to Baker Newman Noyes may generate the need for the payer to file a Form 1099, if made in a trade or business context and if the payments equaled or exceeded $600. If you have any questions, please contact your BNN tax advisor at 1-800-244-7444.
Disclaimer of Liability: This publication is intended to provide general information to our clients and friends. It does not constitute accounting, tax, or legal advice; nor is it intended to convey a thorough treatment of the subject matter.
IRS CIRCULAR 230 DISCLOSURE:
Pursuant to requirements imposed by the Internal Revenue Service, any tax advice contained in this communication (including any attachments) is not intended to be used, and cannot be used, for purposes of avoiding penalties imposed under the United States Internal Revenue Code or promoting, marketing or recommending to another person any tax-related matter. Please contact us if you wish to have formal written advice on this matter.