Am I Required to File a Form 1099-MISC?
Heading into tax season, Form 1099-MISC compliance is a very important issue for your business that can be easily overlooked. Are you required to file a Form 1099-MISC?
In most cases, as a business owner or a self-employed individual, you are likely required to either file Form 1099-MISC or receive one and report it on your tax return. You must file this form for each person to whom you have paid during the year:
- At least $600 in professional services (including parts and materials), medical and healthcare payments, rents, prizes and awards, and other income payments
- At least $600 in nonemployee compensation to an individual, partnership, estate, or in some cases, a corporation
- Gross proceeds of $600 or more paid to an attorney during the year
- Any fishing boat proceeds
- At least $10 in royalties or broker payments in lieu of dividends or tax-exempt interest
- Withheld any federal income tax under backup withholding rules regardless of the amount of payment
- Direct sales of at least $5,000 of consumer products to a buyer for resale anywhere other than a permanent retail establishment
Rent of $600 or more paid by a self-employed individual or a business to another individual must also be reported on Form 1099-MISC.
Partnerships should also be issued a 1099 for $600 or more in nonemployee compensation.
Generally, you must provide Form 1099-MISC to payees by February 1, 2016. An exception to the aforementioned due date for furnishing statements to recipients of Form 1099-MISC is February 16, 2016 only if amounts are reported for gross proceeds paid to an attorney or substitute payments in lieu of dividends or interest.
Form 1099-MISC must be paper filed with the IRS by February 29, 2016 or electronically filed by March 31, 2016. Please note that Form 1096 must also be attached to the 1099-MISC filings. Thirty-day extensions are available for additional filing time.
If you have any questions regarding your 1099 forms for 2015, please let us know, and we would be more than happy to assist you.
Vizcaino Zomerfeld is a team comprised of CPAs and accountants in Miami.