1099’s and You

Have you paid anyone at least $600 in the course of your trade or business? If so, then you may be required to issue them a 1099-MISC and file a form 1096 with the IRS. You don’t need to issue 1099’s for payments made for personal purposes or to corporations. You’ll send this to any individual, partnership, LLC, Limited Partnership or Estate.

When sending out (or having your accountant send them out for you) 1099’s, you will want to make sure that you have:

• Form W-9 for each payee (can be downloaded from the IRS website)
• The amount you paid them over the entire year
• IRS printed copy of Form 1099 and Form 1096 (can be ordered from the IRS website or, while supplies last, from your local post office)

1099’s also have a deadline of January 31 for when they need to be issued and mailed to each payee. Form 1096 needs to be sent to the IRS before February 28^th.

So, as January comes to a close make sure that you have your information together and get your forms out – or be ready to pay the penalties for not sending them out.