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Updated Guidelines For Preparing Form 1099-MISC

As the new year begins, businesses throughout Georgia and the entire United States are gearing up to issue Form 1099-MISC to their required recipients for the previous tax year.

If your business is in this position, you may be wondering what you need to do to comply with your responsibilities and obligations when it comes to the preparation of 1099-MISCs. In the vast majority of cases, the answer is simple - you must issue a 1099-MISC to any non-employee individual or unincorporated business that your organization paid $600 or more to during the course of the year.

Of course, there are a couple of exceptions to this general rule. In particular, you will generally need to send a 1099-MISC to any law firm that your business paid more than $600 to during the year, regardless of its business structure. Additionally, you should be aware that any payments that were made via credit card, debit card, or Paypal do not need to be reported on 1099-MISC.

The deadline for filing Form 1099-MISC to your vendors and to the IRS is January 31st, 2019. As such, our Atlanta CPAs recommend completing the following steps as quickly as possible:

1) Create a list of all individuals and business who you must issue a 1099-MISC to. As part of this list, you should include the amount of money that you paid them during the year.

2) If an updated version is not already on-file, ask each of these payees to complete Form W-9. You can find this document here: http://www.irs.gov/pub/irs-pdf/fw9.pdf

3) Using the information that you have gathered, prepare Form 1099-MISC for each payee and issue it to them and the IRS.

If you require assistance with your 1099 tax planning or preparation, contact us as soon as possible. Our seasoned team of CPAs are experienced in all aspects of tax preparation and can provide you with guidance on 1099-MISCs.

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This blog article is not intended to be the rendering of legal, accounting, tax advice or other professional services. Articles are based on current or proposed tax rules at the time they are written and older posts are not updated for tax rule changes. We expressly disclaim all liability in regard to actions taken or not taken based on the contents of this blog as well as the use or interpretation of this information. Information provided on this website is not all-inclusive and such information should not be relied upon as being all-inclusive.