When everyone is so focused on getting their books cleaned up for 2014 taxes to the IRS, it is easy for some of the “other” taxes to fall through the cracks. One of the important filings due at the end of January (February 2, 2015 this year) is the 1099s. If you don’t know what it is, you are far from alone. This is the document that goes out for payments to your “independent contractors” and lawyers. Independent contractor could b
e that bookkeeper that you hired to work on your books, that plumber that came in to fix the toilets in your complex, and a web designer used to create a great new website for your business! In general, you don’t have to worry about payments made by debit or credit card, but you do have to look at anyone that you paid $600 or more during the year in cash or check. Most corporations don’t need reported, nor do LLCs elected as a corporate structure. However, single member LLCs are a pass-through entity, and may need to be reported, so check with someone or read the 1099 instruction form if you are unsure.
I’ve included a step-by-step process if you think you are ready to try this on your own. Give us a call if you need additional help!