Reminder Regarding Issuance of 1099's for the 2018 Calendar Year
The Doty Group is reminding business owners of the rules and regulations with respect to the issuance of 1099’s for the 2018 calendar year, as it is the responsibility of business owners to comply with these reporting requirements.
If you’re a business owner, you should begin gathering the information that will be needed for preparation of Forms 1099-MISC for the 2018 tax year as soon as possible. Please review the payments you have made so far to your vendors during the year. If you’re a client in need of assistance in gathering this information, please contact our office.
Have you paid a single vendor a total of at least $600 during the year for any of the following?
Rents
Services performed by someone who is not your employee (including parts and materials).
Cash payments for fish (or other aquatic life) you purchase from anyone engaged in the trade or business of catching fish
Prizes or awards
Directors fees
Exceptions to these requirements are as follows:
Payments for which a Form 1099-MISC is not required include all of the following:
Generally, payments to a corporation (including a limited liability company [LLC] that is treated as a C or S corporation), except for payments made to an attorney or for fish purchases
Payments for merchandise, telegrams, telephone, freight, storage, and similar items
Payments made with a credit card or payment card
If you have made payments you believe may require a Form 1099 to be issued, and you do not have the EIN for this vendor on file, forward a Form W-9 to the vendor and ask them to complete the form and return it to you as soon as possible. For a copy of Form W-9, click here.
Penalties for failing to file the required Form 1099 with the IRS can be up to $270 PER FORM.
The Doty Group is a full-service CPA firm offering Tax, Audit, Valuation, and Advisory Services to Business and Individuals in Tacoma, WA. If you have more questions regarding this or other Business Accounting matters, please give us a call at (253) 830-5450 or e-mail info@dotygroupcpas.com.