Happy New Year to one and all!
Tax season 2015 is upon us, and with that comes a January requirement some businesses may forget about: sending 1099s. In short, Form 1099-MISC is required if you’ve paid $600 or more for services performed for your business by anyone who isn’t one of your employees or anyone who receives a W-2.
This includes fees to any subcontractor, an attorney and even your accountant. For example, if you were invoiced $600 or more from your tax preparer, you have to issue the person or firm a 1099. Note that there are some other important conditions that apply to 1099s, and you can find them here.
It’s not overly difficult to render 1099s and you can do it within QuickBooks, QuickBooks Online and most other tax software. However, some people find it challenging to navigate the IRS 1099 rules, mentioned above, to determine exactly which of their vendors should receive a 1099. In addition, there is the challenge of retrieving the necessary information from your vendors in order to send them their 1099.
In light of these challenges that few business owners have time to deal with, we strongly suggest you let Sound Business Services prepare your 1099s for you. And, if Sound Business Services also provides your bookkeeping services, they already have most of the information they need to prepare your 1099s.
Important Deadlines: The form must be sent to recipients by January 31 and to the IRS by February 28, or March 31 if filing electronically. Again, we can help you through this process, but don’t wait until January 31 (a Sunday) to get started!