Form 1099 Reporting
We want to remind you of the requirements of Form 1099 reporting. Please note, this is a very general discussion and is not all-inclusive. To fully understand all of the Form 1099 reporting requirements, you should go to the IRS website where you will find general instructions, specific instructions for Forms 1099, and Publication 1220.
If you file a C-corporation, S-corporation, Partnership, Schedule C for sole proprietorships, or Schedule F for farming, you are required to answer the following questions on the relevant return listed above:
Did you make any payments in 2024 that would require you to file Forms 1099?
If yes, did you or will you file all required Forms 1099?
Form 1099-MISC must be filed for each person, LLC, or partnership to whom you have paid during the year:
At least $10 in royalties
At least $600 in rents or other income
Gross proceeds of $600 or more paid to an attorney (including corporations)
Form 1099-NEC (nonemployee compensation must be filed for each person, LLC, or partnership to whom you have paid during the year:
At least $600 in services performed by someone who is not your employee
At least $600 in payments to an attorney (including corporations)
Be sure to read the Instructions for Forms 1099-MISC and 1099-NEC instructions for additional potential recipients.
Payments made in the course of your business are reported on Forms 1099-MISC/NEC. Payments made for non-business expenses are not reportable. (See Form 1099-MISC/1099-NEC instructions.)
Forms 1099-MISC and Forms 1099-NEC must be issued to the recipients by January 31, 2025. The transmittal form and Forms 1099-NEC must be submitted to the IRS by January 31, 2025. The transmittal form and Forms 1099-MISC must be submitted to the IRS by February 28, 2025, if you file on paper or March 31, 2025, if you file electronically.
Please note that if you are required to file 10 or more aggregate information returns (1099-NEC, 1099-MISC, W-2, etc.) they must be filed electronically.
Penalties for filing Forms 1099-MISC and 1099-NEC late are as follows:
$60 if not more than 30 days late
$130 if more than 30 days late but before August 1
$330 after August 1 or not at all
$660 for intentional disregard of filing requirements
(This fine is for each individual 1099 that is required to be issued!)
Please be sure to read the instructions for any applicability to you and or your business. Please contact us with any questions.
Caution: This explanation is general in nature and should not be used for specific planning. Contact a tax professional for your specific planning needs.