As we enter the new year, it is once again time for trade and businesses to issue Form 1099s. Payments totaling $600 or more (unless specified otherwise) in a year that you make in the course of a trade or business may require you to issue a Form 1099 to the payee.
Below is a partial list of payments that require a Form 1099:
· Services performed by independent contractors
· Rents paid
· Gross proceeds paid to an attorney
· Interest paid on business debt to investors or private lenders (1099-INT – over $10)
· Dividends or other distributions to a company shareholder (1099-DIV – over $10)
You do not need to issue Form 1099s to businesses operating as an S or C-Corporation. Individuals do not need to issue Form 1099s for personal expenses. Form 1099s need to be issued to the payee by 1/31/22 and filed with the IRS as well. To make sure you have all the proper information to prepare the Form 1099, make sure to have each new vendor fill out a Form W-9.
Please contact our office with your specific questions regarding Form 1099s.