Businesses are required to send the copies of Form 1099-MISC to the IRS and the contractors if 10$ or more in royalties is paid by the business or 600$ or more in reimbursement to non-employees. Form 1099-MISC is payable by January 31st to report payments made the previous calendar year. An accounting firm can prepare and file Form 1099-MISC.
What Is a Form-1099?
Form-1099 is an information Tax return. Form 1099-MISC is commonly for small and middle-size businesses but there are other types for large businesses. Businesses filed Form 1099-MISC to report certain types of payments, most particularly to the independent contractors.
Form 1099-MISC is due by January 31st to report the payments made in the previous calendar year.
The IRS requires Form 1099 to be filed if you made payments during the year as part of your business for the following activities:
- Services that are performed by independent contractors or others
- Interest on the business debt to someone
- Other distributions or dividends to a company shareholder.
Please note that you are not required to file Form 1099 if any of the following situations apply:
- The payment was made to another business that is incorporated (unless the payment was for medical or legal services), or
- The sum of all payments made to the person or unincorporated business during the year is less than $600.
To complete Forms 1099-MISC correctly, take into consideration the 2019 General Instructions for Certain Information Returns due dates. Furnish form to the recipient by January 31, 2020. To file electronically, CPA Firms have software that generates a file according to the specifications written in Pub. 1220. The IRS doesn’t offer a fill-in form option.
If you need us to prepare your Forms 1099 for 2020, please provide us the completed Form W-9 with the following information for each vendor:
- Name as shown on the vendor’s tax return;
- Social security number or employer identification number;
- The total amount paid to the vendor during the year.
You may download Form W-9 from https://www.irs.gov/pub/irs-pdf/fw9.pdf for you to give to your vendors to assist you in gathering the required information.
Need help? If you have questions about reporting on Form 1099-MISC, call the information reporting customer service site at (408) 942-1450 or (214) 315-6392.
In order to have your Forms 1099 completed by the filing deadline, you must provide us with your information no later than January 15, 2019.