With a large deficit the government will be looking for ways to collect additional taxes and penalties. The due date for 1099s was changed in 2008 to February 15th. The minimum amount hasn’t changed,
1099 filing requirements
If you company has paid any individuals or businesses more than $600 for rent or services, a 1099 must be filed with the IRS. This includes attorneys, contractors, printing, repairs and other services. When parts are included with a service, these parts must be included in the amount reported on form 1099.
The deadline for filing 1099s is February 15th.
Exemptions:
- Payments made to corporations (except corporations performing legal services)
- Payments made to tax exempt organizations
- Payments made to government agencies
- Rent payments paid to real estate agents, but real estate agents must reports payments of rent made to the landlord
Penalties
A penalty of $50 per information return not filed can be assessed.
Charles G. Perkins, CPA
Servings Small Businesses in the Puget Sound Area
Cell: (206) 422-5504
Office: (206) 228-1988
email: charles@charlesperkinscpa.com
website: www.charlesperkinscpa.com
I look forward to meeting your business and tax needs. I also have many partners in business that can meet your other business needs. These include contractors, insurance agents, investment advisers, financial planners, mortgage advisers, and many others.
We have IDX and it is more than $600. Do we need to file 1099? We have a lot of cleaning jobs done by a company or companies, marketing jobs done, website or internet. They are all companies (maybe not corporations, but mostlry LLCs), do we need 1099 or will LLCs are treated like corporations?
Thanks for the reminder. As a property manager, I have a number of service providers to send forms to.
Jon,
Cleaning, repairs, marketing, website development would all be types of services that you would need to file 1099s for. LLCs are not exempted for 1099 reporting. Most corporations are. If a law firm is incorporated you would still be required to send them a 1099.
Thank you, Charles.
that is new for me. I thought that if we deal with businesses, we did not have to give them a 1099, only to indiividuals.
Terrific timing with your blog, there is still some time to square that.
Jon
Only corporations are exempted. If you hire businesses to perform services that are sole props, partnerships or LLCs you will need to send a 1099. You'll want to get a W-9 from each of the businesses as well.
Charles-
Thanks for some timely and good information about taxes.
Great information and so timely we are finishing ours right not so as to get them out by the 1st.
Charles, Congratulations on being ranked #1 financial planner in Active Rain for 2009!!!
Steve