We can help you with the forms. See the information at the end of this document for how to get help!
If you file form 1120, 1120S, 1065, or 1040 Schedule C, or F, you are required to send 1099 forms to report your payments to certain vendors during the calendar year. There are penalties for failing to send required 1099s.
Congress and the IRS have created a great deal of confusion regarding who must file 1099 forms. This year (and last) there are new tax return questions that must be answered (and signed under penalty of perjury):
- “Did you make any payments in 2012 that would require you to file Form(s) 1099?”
- “If yes, did you or will you file all required Forms 1099?”
It is clear that all corporations, partnerships, and schedule C businesses must file1099s. It has become apparent that IRS is extending the requirement to landlords reporting rental activities on Schedule E as well. Examples of the types of payments that a landlord would need to report include; management fees, attorney fees, landscaping, plumbing, electrical, and HVAC contractor payments.
If, in the course of your business activities, you make payments totaling $600 or more to a vendor for services or rents, you must report those payments to the IRS using form 1099. A copy is also sent to the vendor.
You are not required to report payments to a corporation. You are not required to report payments for the purchase of tangible property. You must always report payments over $600 to attorneys (even if they are a corporation).
You may use Form W-9 to request the necessary information from your vendors. The IRS can also charge penalties for submitting 1099 forms with incorrect information.
If you are a proprietor/landlord and do not wish to use your social security number in the payor section of the 1099, you may request a taxpayer ID number here. See the instructions for Form SS-4 for more information.
1099 forms must be sent to your vendors by January 31, 2013 and to the IRS by February 28.
Would you like us to help with the forms?
We can help you with your 1099s if you would like. We have developed a simple, password protected, Excel spreadsheet to help you gather and organize the necessary information for creating your 1099s.
Upon receipt of the completed spreadsheet (electronically), we will prepare the necessary forms and get them ready for filing. Our fees for this service are $30 plus $5 per 1099.
You may request the spreadsheet from Peggy@VancouverCPA.com .
If you must provide the information in a format other than the Excel spreadsheet, our fees will be $30 plus $10 for each 1099.
If the information that you provide is not complete, we will assist you in obtaining the necessary information at our normal hourly rates.
There are several online services that can also help you prepare and file the 1099 forms. One example is www.tax1099.com.