Are you a Business owner? Have you ever received a Form 1099-MISC? Have you ever needed to complete and file a Form 1099-MISC?
Here's some basic guidance:
As we near the end of 2012, the IRS has reminded us of the Form 1099-MISC filing requirements. As you may be aware, in 2011 the IRS added a question to your business tax return which specifically asked if payments were made that would require filing Form 1099.
We want to remind you of your potential 2012 filing obligation of Form(s) 1099. You will be required to file Form 1099 if any of these apply (not all inclusive):
- Payments totaling $600 or more made to anyone providing a service who is not incorporated. For example, did you hire a lawn mowing company?
- Any amount of payment to attorneys. For example, did you pay an attorney for any legal work?
- Rent payments of $600 or more. For example, do you make a payment to rent office space or warehouse space for your business?
The first deadline for the 2012 Form 1099 reporting is January 31, 2013. There are various penalty assessments if you file late and even more significant penalties for non-compliance. If you feel you may have a filing requirement, you should request a completed Form W-9 from the contractor, attorney, or other payment recipient.
If you have any questions, please do not hesitate to email me at sriley@cpafirm.cc and I would gladly answer any concerns you or your business partners might have.
IRS Circular 230 Notice:
To ensure compliance with requirements imposed by the IRS, we inform you that,
except to the extent expressly provided to the contrary, any federal tax advice
contained in this communication (including any attachments) is not intended or
written to be used, and cannot be used, for the purpose of (i) avoiding
penalties under the Internal Revenue Code or (ii) promoting, marketing or
recommending to another party any transaction or matter addressed herein.
