Full Newsletter   Newsletter Archives

Courtesy of Website Visitor Account For Website Newsletter Archive

  Home- Website    About Us    Services    Careers    Contact Us!   
Click here to download your newsletter in a Dashboard. Read the newsletter without having to check your email!



 Glossary:  A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z
Printable version 


Important Warning – Form 1099

 

By Jerry Hurt

 

Every business must carefully consider and comply with the complicated rules on reporting payments to service providers and filing Form 1099 each year. The IRS assesses significant penalties in cases of failure to file and especially when the recipient could be reclassified as an employee. In addition, the Louisville/Jefferson Co. Revenue Commission requires a related report on Form 1099-SF and is aggressively searching for non-compliance and assessing penalties.

 

In general, Form 1099-Misc should be prepared and filed for any service provider paid more than $600.00 in the calendar year. There are exceptions for payments to corporations and for merchandise. However, all attorneys including those that practice as a corporation should receive a 1099 (there is no minimum exemption).

 

“If in doubt, send one out” is a good rule in our opinion! The Form 1099 should be mailed to the recipient by January 31st and to the IRS with a transmittal Form 1096 on or before February 28th.

 

If you have any questions, please do not hesitate to call your account executive or Cindy Hayes in our General Services department.


 Save article  Email DMLO  Email to a Friend
Is this item worthy of implementation? Yes No Maybe
Is this item worth sharing with other associates? Yes No Maybe
Did this item present value to you and your business? Yes No Maybe
Comments:

Our firm provides the information in this e-newsletter for general guidance only, and does not constitute the provision of legal advice, tax advice, accounting services, investment advice, or professional consulting of any kind. The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal, or other competent advisers. Before making any decision or taking any action, you should consult a professional adviser who has been provided with all pertinent facts relevant to your particular situation. Tax articles in this e-newsletter are not intended to be used, and cannot be used by any taxpayer, for the purpose of avoiding accuracy-related penalties that may be imposed on the taxpayer. The information is provided "as is," with no assurance or guarantee of completeness, accuracy, or timeliness of the information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose.