As we approach the end of the year, we would like to remind you that 1099 forms reporting certain payments made to businesses and/ or individuals are due to recipients by January 31, 2014 and to the IRS by February 28, 2014. Review your records to be sure to have completed W-9 forms signed by any individual, sole proprietor, partnerships, attorney, or LLC that has been paid more than the following amounts during the 2013 tax year.
Payments to persons, including partnerships and LLCs, but excluding corporations, of at least $600 for services, prizes and awards, and other income payments in the course of a trade or business.
Payments to persons, including partnerships and LLCs, but excluding corporations, of at least $600 for rents, and at least $10 for royalties in the course of a trade or business.
Payments to persons including partnerships and LLCs, but excluding corporations, of at least $600 for interest (i.e. interest on an officer’s loan) in the course of a trade or business.
Payments to persons including partnerships and LLCs, but excluding corporations, of at least $10 for general interest or dividend payments.
Any and all payments made to attorneys, including corporations, for services in the course of a trade or business.
It should be noted that the penalty for failure to file correct information returns by the due date can range from $30 to $100 per return.
If you would like us to prepare your 1099 forms, we would be pleased to assist you. Provide all copies of completed W9 forms as well as the amounts paid and purpose of payments to our office as soon as possible. As always, feel free to contact us with any questions.
