1099 forms are those required by the IRS to report payments to vendors made during the year, and are due to the recipient by January 31, and to the IRS February 29th (paper) or March 31st (electronic). IRS instructions state a form 1099-MISC is necessary to file for each person to whom you have paid during the year:
*At least $600 in services (see https://www.irs.gov/uac/About-Form-1099MISC for specifics)
*At least $10 in royalties
*Any fishing boat proceeds; or
*Gross proceeds of $600 or more paid to an attorney.
There are exceptions to these rules:
*Generally, payments to a corporation. But see below for reportable payments.
*Payments for merchandise, telegrams, telephone, freight, storage, and similar items.
*Payments of rent to real estate agents.
*Payments to a tax-exempt organization including tax-exempt trusts
*Payments made with a credit card (form 1099-K is issued by processors)
The following payments made to corporations generally must be reported on Form 1099-MISC.
*Medical and health care payments reported in box 6.
*Fish purchases for cash reported in box 7.
*Attorneys’ fees reported in box 7.
*Gross proceeds paid to an attorney reported in box 14.
*Payments to corporations for legal services.
The exemption from reporting payments made to corporations does not apply to payments for legal services. Therefore, you must report attorneys’ fees (in box 7) or gross proceeds (in box 14) as described earlier to corporations that provide legal services.
For information on how to properly fill out the 1099 forms, see http://bit.ly/1csCHU1
If you have 1099s that need to be processed but don’t feel comfortable doing them yourself, contact us for assistance. 310-534-5577 or contact@abandp.com. We are here to help!