Smith, Sullivan and Brown, P.C.                                                                                           December 2015 

Getting a Jump on 1099 Preparation

1099 filings for the 2015 calendar year are due to recipients by February 1, 2016, and to the IRS by February 29, 2016. Now is the time to begin gathering all information that will be needed to prepare Forms 1099. To ensure a streamlined process, the company bookkeeping should be up-to-date through December 31, 2015 and a Form W-9 should be obtained for all payees meeting the requirements described below. As always, we are available to prepare the 1099 Forms for your business or organization. 

All taxpayers (both individual and businesses) are required to report certain business transactions to the Internal Revenue Service. This includes taxpayers that are self-employed,
all businesses, and nonprofit organizations. 

Below is a list of the types of compensation which require informational reporting. For a complete list of payments see irs.gov (Form 1099-MISC & Payment Types to Report):


Payments of $600.00 or more*:
  • Non-employee Compensation (including subcontractors, independent contractors who provide goods and services, temporary employees and payroll service providers)
  • Rent
  • Prizes and Awards (includes prizes of cash and/or goods)
  • Commissions
  • Consulting Fees
  • Professional Fees (attorneys are not eligible for exception below)
Royalties
payments of $10 or more

Interest payments
of $10 or more to a non-financial institution requires the issuance of Form 1099-INT
Receipt of mortgage interest
of $600 or more requires the issuance of a Form 1098

*The exception to this reporting is if any of the amounts paid above are to an entity incorporated under state law. 

The following are the type of recipients that should be issued 1099 Forms: 
  1. Individuals 
  2. Sole Proprietors (self-employed individuals) 
  3. Partnerships
  4. Realty Trusts
  5. Attorneys (regardless of entity type)
  6. Limited Liability Companies
If any of the above conditions are met, you are required to send the recipients/payee a Form 1099 reporting the total amounts paid during the calendar year (even if you have a fiscal year end that does not end in December, amounts reported on Form 1099 must be on a calendar year basis).

Click on the links below to continue reading important information on 1099 Forms:

Please be advised that the information above is not inclusive. 
If you have any questions, please contact us.

Partners Smith, Sullivan and Brown
Questions?
Call us at 508.871.7178
or go to: www.ssbcpa.com

At Smith, Sullivan & Brown, PC, our dedicated professionals listen to your auditing and accounting, tax preparation, and small business questions. We provide personalized solutions to you, your family, business or nonprofit, all at a reasonable price.

Our accounting team has extensive experience. We understand your frustration when you tell us that you've paid top dollar for accounting services-only to learn that there's a junior-level person working on your engagement. Or, that it's mid-March and your accountant isn't returning emails or phone calls because your files have been put on the back burner so that they can focus on the tax return crunch. At Smith, Sullivan & Brown, PC we only send senior-level accountants into the field and they remain accessible to you throughout the year. A dedicated team is assigned year-round specifically to our nonprofit clients, so that deadlines are met on time and your questions are never ignored.

Established in 1993, Smith, Sullivan & Brown, PC is for you if you value communication, one-on-one attention, and "hands-on" expertise from experienced senior-level accountants. Whether you have a project to bid on now, or in the near future, contact us to schedule an introductory meeting, we'd love to meet you! 
  
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