Form 1099-MISC is required to be issued to any non-corporate vendors that were paid $600 or more during the 2014 calendar year. Non-corporate vendors include individuals, sole proprietorships, partnerships and limited liability companies (LLC). Form 1099 is also required for any gross proceeds paid to an attorney, regardless of their entity structure. A few common examples of payments that may require a Form 1099-MISC would be rents, royalties, contract labor, director fees, and any other compensation NOT reported on Form W-2.
This form should be provided to any applicable vendor by February 2, 2015, and should be mailed to the IRS (along with Form 1096) by March 2, 2015, or by March 31, 2015 if filing electronically. Failure to file Form 1099-MISC when it is required can result in penalties ranging from $100 to $250 for each occurrence.
Form W-9 – Request for Taxpayer Identification Number and Certification should be on file for each entity or individual that an informational return will be provided to. This will provide much of the information needed to prepare the 1099. We suggest obtaining this form once an agreement is made between you and the vendor and before any services are performed or payments are made.
If you would like assistance with preparing Form 1099, or have any other questions, please contact our office as soon as possible. If we are already assisting you with this filing, please disregard this reminder.