Form 1099-MISCs are due to recipients by January 31st . The forms are due to the IRS by February 28th. Form 1099 reports certain payments made in the ordinary course of business to the IRS; it also notifies the person who received the payment of what you are reporting to the IRS.
Generally, this form is required for each person to whom you have paid during the year:
- At least $10 in royalties, broker payments in lieu of dividends or tax-exempt interest;
- At least $600 in rents, services, prizes and awards, other income payments, medical and health care payments, crop insurance proceeds, cash payments for fish and other aquatic life purchased from someone engaged in the trade or business of catching fish, or cash paid from a notional principal contract to an individual, partnership, or estate;
- Any fishing boat proceeds; or
- Gross proceeds of $600 or more paid to an attorney.
Certain exceptions may apply and, generally, payments made to corporations are not required to be reported on Form 1099-MISC. We recommend obtaining Form W-9s in order to accurately complete the Forms 1099 and determine which payees are classified as a corporations. Note that the IRS has clarified that LLCs receiving payments should receive Form 1099-MISC unless the payor has received an affirmative statement from the LLC that it is taxed as a C corporation. Payments for foreign transactions have their own set of reporting requirements and use different forms.
If you would like additional information or have questions, please contact Lisa Blum at lblum@deandorton.com or by calling (502) 589-6050 or Gina Whitis at gwhitis@deandorton.com or by calling (859) 255-2341.