Please note: if you are on the receiving end of a 1099-MISC, be sure to include it with the documents you send to us to prepare your tax return.
Form 1099-MISC is not required to be issued for payments made personally; only payments made in the course of a trade or business require reporting.
Your business is required to file a Form 1099-MISC with the IRS and provide a copy to each person or entity to whom you have made certain types of payments. The most common types of payments requiring 1099-MISC filing include the following:
Payments of at least $600 for:
Rents (Box 1)
Services performed by someone who is not your employee (Box 7)
Attorney fees (Box 14)
Other payments that do not fit anywhere else on Form 1099-MISC (Box 3)
Payments of at least $10 for royalties (Box 2)
Note, however, that payments to LLC's treated as S corporations and C corporations are generally not required to be reported on Form 1099-MISC
, even if they meet the above conditions.
There are three filing deadlines to be aware of, depending on the type of payment being made and how the form is filed. For the 2018 tax year, Form 1099-MISC must be filed by the following dates:
January 31, 2019 for any non-employee compensation payments reported in Box 7
February 28, 2019 for all other payments, if the form is paper-filed with the IRS
April 1, 2019 for all other payments, if the form is electronically filed with the IRS
In order to correctly file your 1099-MISC, you will need the following information:
Name, address, and SSN/EIN of the payee
Total amount of payments made in each reportable box of the 1099-MISC
Penalties for failure to file Form 1099-MISC can be very severe. Depending on how late the corrected filings are made, penalties per incorrect form can range from $50 to $270.
If you would like Soukup, Bush & Associates to prepare 1099's for your business in the upcoming tax year, please furnish the necessary information to us by January 15, 2019 so that we can be sure to prepare the forms in time to meet the deadlines.
Employee Spotlight - Brittany A. Fernandez
Brittany joined the firm as an intern in early 2018, and as a full-time member of the team in May of 2018. She works as an associate in both the tax and audit departments of the firm.
She attended the University of Northern Colorado with a Bachelor of Science degree in Accounting and Finance. Brittany participated in intramural softball, dodgeball, and basketball throughout college. She was also inducted into Beta Gamma Sigma, an exclusive business honor society her Junior year.
In her free time Brittany enjoys being outside, running, biking, and spending time with friends and family.
If you are unsure how the 1099-MISC filing requirements apply to your business, or if you would like additional clarification on any of the above information, please contact us at (970) 223-2727.