When are you required to file a 1099?
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Any person, including a corporation, partnership, individual, estate, and trust, who make reportable transactions during the calendar year must file information returns to report those transactions to the IRS. Persons required to file Information Returns to the IRS must also furnish statements to the recipients of the income. Report on Form 1099-MISC only when payments are made for the following in the course of your trade or business and the recipient is not a corporation. Information forms are due to the recipient by January 31, and due to the IRS by February 28. If late a fine of up to $50 per 1099 could be assessed.
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At least $10 in royalties or broker payments in lieu of dividends or tax-exempt interest
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At least $600 in rents, services (including parts and materials), prizes and awards, other income payments, medical and health care payments, crop insurance proceeds, etc.
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Any fishing boat proceeds
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Gross proceeds paid to an attorney (any amounts)
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Direct sales of at least $5,000 of consumer products to a buyer for resale anywhere other than a permanent retail establishment
The following transactions may require you to issue another type of 1099:
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1099-Int: Interest paid ($10 or more)
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1099-C: Cancellation of Debt ($600 or more)
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1099-Div: Dividend ($10 or more)
If your business requires 1099's to be issued, we can process them for you. Just complete the 1099 Worksheet form and fax or email back the excel file to info@appelcpa.com (include "1099 Processing" in the subject line and return it to our office by January 15.) If you are unsure whether one needs to be issued, please call our office.
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