As the end of the year approaches, it’s time to start gathering the necessary information from your vendors to file your 2017 1099s. January 31, 2018 is the IRS deadline to file your 2017 1099 forms electronically.
In order to obtain the necessary information to file your 1099-MISC, you will need to request a complete W-9 form from each vendor or investor that you paid during the year. You’re required to file a Form 1099-MISC for each company or individual to whom you have paid any of the following:
• at least $10 in royalties or broker payments in lieu of dividends or tax-exempt interest;
• at least $600 in:
- rents;
- services performed by someone who is not your employee (including parts and materials);
- prizes and awards;
- other income payments;
- medical and health care payments;
- crop insurance proceeds;
- cash payments for fish (or other aquatic life) you purchase from anyone engaged in the trade or business of catching fish;
- generally, the cash paid from a notional principal contract to an individual, partnership, or estate;
- payments to an attorney; or
- any fishing boat proceeds
In addition, use the 1099-MISC form for reporting any sales of at least $5,000 of consumer products to a buyer for resale anywhere other than to a permanent retail establishment.
If you intentionally disregard the requirements to file your 1099s with the IRS, you may receive a penalty. The minimum penalty is $260.00 per missed filing. This penalty may also apply if you submit a 1099 with incomplete information.
Please refer to the following link for additional Form 1099-MISC filing instructions: irs.gov/pub/irs-pdf/i1099msc.pdf
You can file your 1099 forms electronically at the following link: fire.irs.gov/
You can download a blank W-9 Form here: irs.gov/pub/irs-pdf/fw9.pdf
For more information or assistance in filing your 1099s, please contact us.