Are You in Compliance?

Are you in compliance with Form 1099-Misc Requirements?

Who is required to file Forms 1099-Misc?

All Businesses and Non-Profits

What happens if I don’t file 1099-Misc forms?

There are fines and penalties for neglecting to file.  We are seeing more audits specifically checking for 1099 compliance.

Is it true that only construction companies are required to file 1099s?

This is false. (see below)

What if my service provider tells me they don’t require a 1099?

They do not have a choice.  Any business or non-profit who makes a payment to an individual or business should request a Form W-9 be completed and signed before any payment is made.  This form will help you determine if you need to file for that vendor. *All Businesses and Non-Profits are required to file a Form 1099-Misc for each individual or business to whom they paid $600 or more during the year for rent and/or various services.

For Example:

– Paid $650 to individual for facilities maintenance or paid $3000 to a business for Advertising costs – 1099-Misc copy A to IRS by January 31, 2018 – 1099-Misc copy B to Vendor by January 31, 2018 For additional details refer to www.irs.gov/form1099misc

Case in Point:

The Pennsylvania Department of Revenue recently audited a Paisley Solutions client.  The auditor required information for the preceding 5 years including 1099 forms filed, evidence of all disbursements and copies of Form W-9 for vendors. The time involved to pull the records was substantial. The client was found to be in compliance and there were no additional charges!  As part of our service to this client, Paisley Solutions prepares and files the 1099 Forms annually. Bookkeeping Made Easy!