Things You Need to Know About 1099s

Don’t panic! Breath and file!

Say Bookkeeping!

It’s that time of year again, the time of year when you are required to send out a Form 1099 to vendors who meet certain criteria. As a general rule, you must issue a Form 1099-MISC to each person to whom you have paid at least $600 in rents, services (including parts and materials), prizes and awards, or other income payments. You will need to send this form to any individual, partnerships, Limited Liability Company, Limited Partnership or Estate.

Corporations are NOT included in the list of entities for which you need to issue a 1099 to. Additionally, you don’t need to send 1099s to sellers of merchandise, freight, storage or similar items. Lawyers get the short end of the stick. Ironically, the government doesn’t trust that lawyers will report all of their income, so even if your lawyer is ‘incorporated,’ you are still required to send them a Form…

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