Tax Tip #175

Business owners, payments to certain individuals and businesses require a 1099 to be issued and filed with the IRS & in some states. The following are key points to know:

• Payments of $600 or more to individuals (not employees), partnerships (LLCs & LLPs), physicians and all attorneys are reportable on Form 1099-NEC
• Payments to corporations are typically not reported (unless to an attorney)
• The recipient should complete a Form W9 in order to complete Form 1099. The W9 form can be found on the IRS website
• Due dates: 1099s need to be provided to the recipient by 1/31
• Penalties: Range from $50 to $270 per return or statement (per 1099)

If you have questions or would like assistance, please reach out to a team member.