By Caleb Lendy, BRP- CPAs
- Do – Get a W-9 from each independent contractor/service provider when you start a working relationship with them. It saves time and effort down the road, and you won’t have to track them down last minute.
- Do – Report payments made to individuals, partnerships, and estates.
- Do – Send 1099s to all contractors/service providers and lawyers to whom you made payments to over $600 throughout the year. While the copies are due to recipients by the end of January, they are not due to the IRS until the end of February.
- Do – Ask your accountant if you have any questions on filing requirements.
- Don’t – Report payments to corporations unless specifically reportable in the 1099-MISC instructions.
- Don’t – Report personal payments. Only payments made in your course of business should be reported.
- Don’t – Wait until the last minute! It saves time, stress and money to get them completed early!
Disclaimer: The information contained in this Blog (the “Blog”) is intended solely to provide general guidance on matters of interest for the personal use of the reader, who accepts full responsibility for its use. In no event will BRP, or its partners, employees or agents, be liable to you or anyone else for any decision made or action taken in reliance on the information in this Blog or for any consequential, special or similar damages, even if advised of the possibility of such damages.