August 2021: New Process — 1099s & Personal Property Tax
New Process: 1099s & Personal Property Tax
As the next year rapidly approaches, we would like to share our new 1099 and personal property tax process with you as well as some helpful tips.
Designed for the Best Service to You
We have a new process for filing 1099s and personal property tax declarations! As we are always looking for ways to better serve you as our clients, this process was designed with you in mind. Our new processes will better assist you in timely filing the required forms.
What is the New Process?
In early November, we will be reaching out to you with a questionnaire and an engagement letter. The questionnaire will ask you to provide us with information to better assist you with your Form 1099 and property tax filing needs for 2021.
As 1099s for payments to subcontractors are due at the end of January, we will ask that you complete the questionnaire and return it to us by January 10th, 2022 in order for us to prepare these forms timely. It will be our understanding that if we do not receive a completed questionnaire and engagement letter from you by January 10th, you do not need us to assist you in filing your 1099s or property tax declarations.
What Will the Questionnaire Ask?
So you can best plan for your filing needs, we have created a brief list of items that will be on our questionnaire:
- Name, address, and SSN/EIN of the payee (or completed form Form W-9).
- Total amount of payments made to each subcontractor if you paid them more than $600 for the year.
For personal property tax declarations:
- List of all assets purchased in 2021 valued at or over $400.
- Copies of purchase documents for all assets purchased in 2021 for at or over $2,500.
Helpful Tips: 1099s & Personal Property Tax
- 1099s are not required to be issued for payments made personally; only payments made in the course of a trade or business require reporting.
- It is best to ask for a Form W-9 from each non-employee you pay for services. This streamlines the 1099 filing process as a completed W-9 will indicate if the vendor or contractor actually needs a 1099 issued to them and includes the contractor’s name and business name, type of entity, and the business’s tax identification number. This form is filled out by the independent contractor and retained for your records.
- 1099s are issued for payments made for services, not goods, $600 or more per payee annually.
- Payments to C corporations, S corporations, and LLCs treated as S corporations for tax purposes are generally not required to be reported on a Form 1099.
Personal Property Tax Filings:
- Business owners must file if the business owns personal property valued at $7,900 or higher in total (this is the threshold for Weld and Larimer counties).
- Business personal property includes machinery, equipment, and certain leasehold improvements.
- The deadline to file for personal property tax is April 15th, even if you extend your business and personal tax returns.
- Use a Personal Property Tax Declaration Schedule to file. These are mailed out to each existing business in January, or they can be printed from your county website.
As always, please feel free to reach out to us with any questions or concerns.
Pat has been a member of our firm since October 2005. Prior to joining our firm, she was employed as a CPA for 18 years at a firm in Longmont, Colorado working with individuals and not-for-profit entities. In addition to preparing income tax returns for individuals and small businesses, Pat assists clients with payroll tax and employment issues.
Pat graduated from Colorado State University and is a member of the American Institute of CPAs and the Colorado Society of CPAs. In 2015 Pat was recognized by the Colorado Society of CPAs as an “Everyday Hero” for making a difference in her community and the lives of others.
For a number of years, Pat served as the treasurer of the Fort Collins Children’s Theatre, Inc. and volunteered as a classroom teacher for Junior Achievement-Rocky Mountain, Inc. She currently volunteers with the Loveland Sculpture in the Park Show.
In her spare time, Pat enjoys spending time with her family and following the CSU Rams and Nebraska Huskers.
SEPTEMBER 15, 2021 – Federal and state income tax returns are due for flow-through entities, including partnerships and S-Corporations if extended
SEPTEMBER 30, 2021 – Federal and state income tax returns are due for trusts if extended
OCTOBER 15, 2021 – Federal and state income tax returns are due for individual taxpayers and C-Corporations if extended
2021 Estimated Payment Deadlines
SEPTEMBER 15, 2021 – 3rd quarter estimated payments for 2021 are due to the IRS and Colorado Department of Revenue