Who must file 1099-Misc?
Any business, including a corporation, partnership, sole-proprietorship, estate, or trusts that engage in reportable transactions during the calendar year must file information returns to report those transactions to the IRS. Entities required to file information returns to the IRS must also furnish statements to the recipients of income. There is an entire series of 1099 forms for various reportable transactions but the most common is the 1099-Misc. The other 1099 information returns can be found at www.irs.gov.
What to report on a 1099-Misc
In general, the 1099-Misc is issued for:
- Payments for services performed for a trade or business by people not employed by the business. (examples: fees to subcontractors or directors)
- Gross proceeds paid to attorneys (regardless of business form)
- Rents paid (unless made to a real estate agent e.g. office rent, equipment rent)
- Royalties – any amount over $10
- Prizes or awards
- Medical & health care payments
- Other income payments
Amounts to Report: Payments made of $600 or more
- Sent to the recipient by February 16, 2016
- Submit paper filing by February 29, 2016
- Submit electronically by March 31, 2016
- $30 per 1099 for those filed within 30 days of the due date
- $60 per 1099 for those filed after 30 days but by August 1st
- $100 per 1099 for those filed after August 1 or not filed
- Filers who have 250 or more 1099s to file must file the 1099s electronically
- Generally don’t issue 1099s to corporations
- Must issue to attorneys regardless of business type
All businesses are required to annually certify if payments were made that would require form 1099 to be filed. If the answer is yes, then the taxpayer must certify if all required form 1099s were filed or will be filed. Cook Martin Poulson, PC is ready and able to help you in filing your 2015 1099s. If you’d like Cook Martin Poulson, PC to prepare your 2015 Form 1099s, please have all your 1099 information to us by January 16, 2016. Please feel free to contact us with any questions.