Um . . . issuing 1099?
Posted on January 23, 2007 - Filed Under Business |
Tax season is upon us. And I’m getting ready!
Last year, I was all fired up about tax season. This year was no different . . . until I read this:
"If you operate a business or own rental property, you may be required to issue 1099 forms. The law requires you to issue a 1099 form to any individual or firm to whom you paid at least $600.00 for services or business rent during last year.
Forms must be issued no later than January 31st. There is a $100 penalty for each 1099 that is not filed."
To be honest, I’m not very excited about issuing 1099’s. The thought of communication with Cabinetman has me a bit nauseated. Off the top of my head, I believe I would have to issue four 1099’s.
Is this right?
Has anyone else done this or even heard of this?
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6 Responses to “Um . . . issuing 1099?”
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http://www.ehow.com/how_13664_know-issue-1099.html
“Do not send a 1099-MISC to someone when you have made a personal payment to him. An independent contractor to whom you have made a personal payment unrelated to your trade or business does not receive a 1099-MISC.”
“Landlords are now being required to send 1099-MISCs to payees in order to deduct these expenses. This means, too, that even small sole proprietors are required to send landlords 1099-MISCs in order to deduct office rent.”
Read that link, then call your accountant.
What’s to communicate? When you hired him you should have gotten his info so it’s just a matter of completing the form and dropping it in the mail.
Stan, “completing the form and dropping it in the mail” is communication.
Anyone who doesn’t think Cabinetman wouldn’t call me, upon receipt of his 1099, either hasn’t been paying attention or just start reading this blog.
Fortunately it’s a mute point. I don’t have to send Cabinetman a 1099.
Doh, I wonder if that means I have to send one to the property management company. Guess I better get checking…
I look at it like this. If I paid the contractor a salary, either in hourly form or separately from the materials cost, then I owe him a 1099. If I paid him based on a bid which included materials, I do not owe him a 1099.
When we paid our Contractor 2 and his helpers hourly, we had to give them 1099’s for that year.