The 1099 filings are fast approaching. Form 1099-MISC is an IRS tax return document used to report miscellaneous payments made to non-employee individuals, such as independent contractors, throughout the year. A completed copy of the Form 1099-MISC must be sent to qualified vendors and filed with the IRS electronically by January 31st.

Those subject to Form 1099 compliance are:

  • Individuals, sole proprietors, partnerships and LLC’s that you have paid at least $600.00 to for services (not goods), rents and legal fees.
  • Any person from whom the employer has withheld federal income tax under the backup withholding rules.

Payments that are not reported in a Form 1099 filing are:

  • Payments to corporations with the exception of attorneys
  • Employee Income
  • Tax Exempt Organizations

A W-9 form requests the Tax I.D., Social Security or TIN Number and the legal name and address of the individual. You can download a W-9 form from this web site:

If a company intentionally disregards the requirements to provide a correct Form 1099 to the payee the minimum penalty is $260.00 per missed filing.  This penalty also applies if you provide incomplete data.

For more information or help filing your 1099s, please contact us.