The Doty Group CPAs | Tax, Assurance, Accounting, Litigation and Valuation

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Rules for Issuing Form 1099 for 2019

This is our annual reminder, as we close in to the end of the year, of the rules and regulations with respect to the issuance of 1099s for the year. It is the responsibility of business owners to comply with the following reporting requirements.

Get Ready Now

You should begin gathering the information that will be needed for preparation of Forms 1099-MISC for the 2019 tax year as soon as possible. Review the payments you have made so far to your vendors during the year. If you are a client who needs assistance in gathering this information, you can contact our office for help.

Considerations

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 fist (or other aquatic life) you purchase from anyone engaged in the trade or business of catching fish;

  • Prizes or awards;

  • Directors fees;

  • Payments to Physicians or medical offices;

  • Generally, the cash paid from a notional principal contract to an individual, partnership, or estate;

  • Payments to an attorney;

  • In addition, use this form to report that you made direct sales of at least $5,000 of consumer products to a buyer for resale anywhere other than a permanent retail establishment.

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 – 1099s must still be issued for these types of payments.

  • 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, you may forward a Form W-9 to them and ask them to complete it and return it to you as soon as possible. If you would like our assistance in completing and filing the required Forms 1099, please forward copies of any completed W-9’s to our office.

Note for clients: We will need this information by January 10th in order to meet the filing deadline of January 31st, 2018.

If you have any questions, please email Deb Miller or Joan Gravseth