Form 1099-MISC Reporting Requirements
Attn: Self Employed (Schedule C Filers) and Individuals with Income or Loss from Rental Real Estate (Schedule E Filers)
The IRS continues to increase its scrutiny of Form 1099 reporting by individuals. The IRS uses Form 1099s submitted to them to match to the recipients reporting of income on their tax returns. Failure to comply with Form 1099 filing requirements may result in substantial penalties.
If you have paid $600 or more in non-employee compensation or rents, you are required to file the Form 1099-MISC and accompanying Form 1096 transmittal forms. Examples of non-employee compensation would be payments made to your accountant, attorney, subcontractor or any unincorporated business, such as a partnership or limited liability company. Payments to corporations generally do not require a Form 1099 to be issued. However, payments to attorneys and those with withholdings must be reported if the entity is a corporation. For more information regarding Form 1099-MISC requirements, visit the IRS Website.
All recipients must receive a copy of their Form 1099 by January 31, 2017 and copies of the Form 1099 and Form 1096, must be sent to the IRS by January 31, 2017, as well as any state agency that requires it.
If you have any questions regarding your requirements to provide information returns or would like our assistance with the preparation of the forms, please call our office at your earliest convenience: 781-569-4700