It’s important to ensure that all necessary tax documents are in order are timely as we start a new year.
One of these documents is the 1099 form.
What is the form used for 1099?
This is used to report non-employee compensation to the IRS and must be issued to any individual or unincorporated business that you have paid at least $600 in rent, services, prizes, awards, or other income payments during the year. However, there are some exceptions to this rule:
- If you have paid a vendor through a credit card, no 1099 is required.
- If you have contracted with a corporation, such as a PR agency or consulting firm, 1099 is not required. Only individuals or unincorporated businesses are required to receive 1099.
Be advised that the deadline for distributing 1099s to recipients is January 31st, so be sure to gather all necessary information and issue forms before this date.
Don’t wait! Schedule a call now to ensure your 1099 forms and other necessary tax documents are in order before the January 31st deadline. Don’t risk penalties for non-compliance; act today!