Issuing 1099 forms

A quick reminder on issuing 1099 forms for 2015:

All recipient copies must be sent by February 1, 2016 and IRS/State copies sent by February 29, 2016. A Form 1099 must be issued for anyone paid rent, outside services, labor, interest, commission, prizes/awards and legal fees ($600 or more). Corporations are not issued 1099s (except attorneys’ and veterinarians’ fees).

Congress has increased the penalties for failure to file or late filing of Forms 1099 effective January 1, 2016. Failing to issue a 1099 or filing with incomplete or incorrect information — carries penalties ranging from $50 to $250 per 1099, with a maximum penalty of $1,000,000 for small businesses and $3,000,000 for large businesses.
To prepare your 1099 forms, you must have a complete W9 containing the following information for each recipient/vendor:

  • Legal Name
  • Social Security# or EIN#
  • Mailing Address
  • Total Amount Paid for 2015
  • Payment type (Labor, Commission, Rent, etc.)

If you do not have a current W9 form from the vendor, your company will not be protected against potential backup withholdings that may apply to that vendor.

Also, LLCs that are taxed as a Sole Proprietor must use a Social Security Number, and you must have the name of the recipient and DBA name, if they have one. LLCs that are taxed as Partnerships must use the company’s EIN (employer id number).

LLCs taxed as corporations must properly fill out the W9 so that you do not need to issue a 1099.

If you would like TaxesPlus to prepare your 1099 forms, then we would be happy to help.

Please submit a request or call our office to get setup 913-432-3147.