December 2022 – 1099 Filing Requirements – Important Reminders!
1099 Filing Requirements – Important Reminders!
As we approach 1099 filing season, we wanted to provide information on our 1099 preparation process for 2022 1099 forms.
Similar to last year, we will be uploading to the portal a form 1099-specific engagement letter and an Excel template with pre-populated 2021 vendor information to assist in updating the template with the relevant 2022 information. If we prepared your forms 1099 last year, you should have also received (or will be receiving shortly) an email from us with links to both of these documents and instructions on how to complete the Excel template. If you would like us to assist with the preparation of your 2022 forms 1099 please sign the engagement letter and return it to us.
Please reach out with any questions on this 1099 preparation process.
1099’s: Helpful Facts
-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’ tax identification number. This form is filled out by the independent contractor and retained for your records.
-1099’s are issued for payments made for services (not goods) that were $600 or more per payee in total for the year.
-Payments to C corporations, S corporations, and LLC’s treated as S corporations for tax purposes are generally not required to be reported on a Form 1099.
1099’s Forms
Your business is required to file a Form 1099 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 filing include the following:
| Form | Payment Type |
|---|---|
| 1099-NEC | Payments to contractors/non-employees, payments to attorneys |
| 1099-MISC | Rent paid; Royalties paid; Other income |
| 1099-DIV | Dividends paid |
1099’s: Filing Deadlines
| Form | Date Due to Recipient | Date Due to IRS |
|---|---|---|
| 1099-NEC | January 31, 2023 | January 31, 2023 |
| 1099-MISC | January 31, 2023 If reporting in box 8 or 10: February 15, 2023 |
If paper filed, February 28, 2023 If electronically filed, March 31, 2023 |
| 1099-DIV | January 31, 2023 If reporting by trustee or middle person for WHFITs, due date is March 15, 2023 |
If paper filed, February 28, 2023 If electronically filed, March 31, 2023 |
Extended 1099 deadlines are available:
To ask for an extension on the 1099 IRS filing deadline, a completed Form 8809 must be filed by the original filing deadline. Please note, for the 1099-NEC, no extensions are available. The extension will provide 30 additional days beyond the original filing deadline for each form.
To request an extension of time to furnish 1099s to the recipients, a letter request must be faxed to the IRS at (877) 477-0572 including the following items:
-Payer name
-Payer TIN
-Payer Address
-Form type
-Reason for extension/delay
-Signature
1099’s: Information Needed to File
In order to file your 1099’s, you will need the following information:
-Name, address, and SSN/EIN of the payee
-Total amount of payments made during 2022 in each reportable box of the 1099
Penalties for failure to file Forms 1099 can be severe. Depending on how late the corrected filings are made, penalties per incorrect form can range from $50 to $570.
If you would like us to extend and/or prepare 1099’s for your business in the upcoming tax year, please furnish the necessary information to us by January 10, 2023 so we are able to best assist you in meeting the deadlines for these forms.
Please note: if you are on the receiving end of a 1099, please be sure to include it with the documents you send to us to prepare your tax return.
As always, please let us know if you have any questions on the new 1099 process or on 1099 filing requirements.
2023 Soukup Bush Deadlines
FEBRUARY 15, 2023: For our clients who own pass-through entities – please provide all documents and required information for partnership and S-corporation tax returns by February 15, 2023. In order to provide our best service, your tax return will be extended and completed after April 15, 2023 if there is still outstanding information needed by February 15, 2023.
Please Note: extended business returns will be prepared after the individual filing deadline, April 15, 2023. Thus, we will also be filing an extension for your individual return if we extend your business return.
MARCH 10, 2023: For our clients with individual and C-corporation tax returns – please provide all documents and required information for individual and C-corporation tax returns by March 10, 2023. In order to provide our best service, your tax return will be extended and completed after April 15, 2023 if there is still outstanding information needed by March 10, 2023.
2022 Filing Deadlines
JANUARY 31, 2023 – Form 1099 NEC and the related Form 1096 must be filed with the IRS for any non-employee compensation paid
FEBRUARY 28, 2023 – Form 1099 MISC and the related Form 1096 must be filed with the IRS for rents, royalties, or other payments (MARCH 31, 2023 if filed electronically)
MARCH 15, 2023 – Federal and state income tax returns are due for calendar-year flow-through entities, including partnerships and S-Corporations
APRIL 18, 2023 – Federal and state income tax returns are due for individual taxpayers, C-Corporations, and Estates and Trusts
SEPTEMBER 15, 2023 – Federal and state income tax returns are due for flow-through entities, including partnerships and S-Corporations if extended
OCTOBER 2, 2023 – Federal and state income tax returns are due for trusts if extended
OCTOBER 16, 2023 – Federal and state income tax returns are due for individual taxpayers, and C-Corporations if extended
2023 Estimated Payment Deadlines
JANUARY 16, 2023 – 4th quarter estimated payments for 2022 are due to the IRS and Colorado Department of Revenue
APRIL 18, 2023 – 1st quarter estimated payments for 2023 are due to the IRS and Colorado Department of Revenue
JUNE 15, 2023 – 2nd quarter estimated payments for 2023 are due to the IRS and Colorado Department of Revenue
SEPTEMBER 15, 2023 – 3rd quarter estimated payments for 2023 are due to the IRS and Colorado Department of Revenue
EMPLOYEE SPOTLIGHT: EMMA SEWELL
Emma joined the Soukup, Bush & Associates team in July of 2022. She is a Colorado Native and attended Aims Community College for anthropology and psychology. She currently assists with all aspects of administrative management as well as processing both individual and corporate income tax returns.
In her free time, Emma enjoys baking, reading, writing, and learning about history and music.