It’s almost that time again! Who will you (or your accountant or bookkeeper) send 1099 forms to in January 2016? I thought now was a great time to reiterate that doing everything correctly upfront makes the 1099 issuance process so much easier. Today, I’m focusing on 1099s from a tax perspective. (However, in the next post, I will focus on the steps to take to protect yourself and your firm from the potential re-classification of independent contractors as employees, given the lawsuits filed by individuals at various firms and the judicial rulings that have recently been issued.)
Please click on one of the two YouTube videos below for a brief 4-5 minute overview of what you need to do IN ADVANCE to ensure that you have (your company has) absolutely no problem complying with the IRS’ 1099 submission requirements (including information and deadlines).
“LLCs and 1099s”
- This video discusses who must receive W-9s in order for you to collect the information needed to file 1099s.
“IRS 1099 Filing Penalties”
- This video discusses the dates and penalties for not filing. I’m sharing this here so that you fully understand why it is so crucial to obtain the necessary information in advance – i.e., when onboarding a new contractor (any person or entity you enter into a contract with), that is NOT a corporation or that does not file taxes as a corporation.
- ALL CORPORATIONS ARE EXEMPT FROM RECEIVING 1099S. THIS MEANS YOU DO NOT NEED TO COLLECT ANY W-9S OR OTHER INFORMATION FOR ANY CORPORATION YOU DO BUSINESS WITH!!
Additional: If you think additional information on 1099s would be helpful for you, please let me know what information you seek! Please share your request in the comment box below.