Tuesday, January 5, 2016

About filing 1099-Misc

1099-Misc Basics

If you are a business owner and hired independent contractors during the year, you may have to issue them form 1099 Misc.

This is a method that the IRS uses to make sure that the income is then reported by the contractor.

You also need to send a copy to the IRS.

The rules boil down to this:

If you own a business and you paid a contractor of $600 or more, you are required to file a 1099 Misc

There is an exception, and that is if the contractor is a Corporation, then you do not need to prepare the form

Also, any payments to an attorney - this would suggest that the IRS officially does not trust attorney's must be reported

Do not include payments for materials, 1099's should be for services provided only.

Filing these forms has become easier over the years.  You can find a firm that prepares these forms for you at:


By Doug Zandstra CPA EA
Certified Public Accountant
Enrolled Agent
29 Pearl St NW, Ste 225
Grand Rapids, MI  49503616 970 3000
email doug@dougzandstra.com

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