You are required to issue a 1099 to anyone you pay $600 or more in the course of your trade or business who is not incorporated.
Typical payments requiring a 1099 include services performed by independent contractors, such as gardeners and housekeepers for your business, as well as rents your business pays.
Received a Payment and Other Reporting Situations
Per the IRS, if, as part of your trade or business, you received any of the following types of payments, you will have to file a specific form.
- Payment of mortgage interest (including points) or reimbursements of overpaid interest from individuals (1098)
- Sale or exchange of real estate (1099-S)
- You are a broker and you sold a covered security belonging to your customer (1099-B)
- You are an issuer of a security taking a specified corporate action that affects the cost basis of the securities held by others (Form 8937)
- You released someone from paying a debt secured by property or someone abandoned property that was subject to the debt (1099-A) or otherwise forgave their debt to you (1099-C)
- You made direct sales of at least $5,000 of consumer products to a buyer for resale anywhere other than a permanent retail establishment (1099-MISC)
Not Required to File Information Returns
You are not required to file information return(s) if any of the following situations apply:
- You are not engaged in a trade or business.
- You are engaged in a trade or business and
- the payment was made to another business that is incorporated, or
- the sum of all payments made to the person or unincorporated business is less than $600 in one tax year (unless the recipient is an attorney or law form, see specific instructions for 1099-MISC for further details).
If you need to issue a 1099, and haven’t, we can prepare the 1099 forms if you would like. Just contact us. We can be reached at 619-589-8680.
We do more than just tax preparation at US-TaxLaws.com. We are your best source for professional tax preparation and/or financial consulting services. We give clients a total solution that can include:
Personal Tax Preparation Business Tax Preparation Partnership Tax Preparation
Corporate Tax Preparation Incorporation-Choice of Entity Business Support Services
Corporate Compliance Audit Representation Retirement Tax Planning Wills & Trusts, Estate Planning Bookkeeping Payroll