We would like to take this opportunity to review Form 1099 requirements to assist you with your year-end filings as well as to help you start the 2014 new year following IRS guidelines and requirements. 1099 Forms are due in just a few weeks on January 31st (click here for our detailed letter).
Per IRS regulation, 1099s are due for each vendor to whom you have paid during the year:
- At least $10 in royalties or broker payments in lieu of dividends or tax-exempt income
- At least $600 in rents, services (including parts and materials), prizes and awards, other income payments, medical and health care payments
- Gross proceeds of $600 or more paid to an attorney (even if they are incorporated)
The classification of your workers as "employees" or "independent contractors" remains a "hot topic" with the IRS, even though some guidelines have been released intending to simplify this area. For each independent contractor (individual, partnership, LLP or LLC) to whom you paid $600 or more during the 2013 calendar year, please include the following information:
- Formal name/business name
- Social Security Number or Taxpayer ID Number
- Amount paid in 2013
Smith Dickson can handle preparation of the Forms 1099 for you. We need to receive your information by January 23, 2014 in order to complete the filings by the deadline.
If you have any questions, please contact Karen Reed (firstname.lastname@example.org) or
Elaine Kazzi (email@example.com) and we will be happy to assist you. You can also reach us by phone at (949) 553-1020.
Smith Dickson, An Accountancy Corporation