Perhaps one of the lesser known tax forms for businesses is Form 1099-MISC, which is used to report miscellaneous payments made to people who work independently. These forms are issued by businesses and renters (landlords or landladies) for accounting purposes. If you’ve worked with several freelancers over the past year, there’s a good chance you’ll have to file this form.
Take a few minutes to learn about Form 1099-MISC to see if you are required to file it, and what you need to do if you have to. David Gallagher CPA provides 1099-MISC preparation and filing services and is currently accepting appointments for the 2019 tax season.
As mentioned previously, Form 1099-MISC is a document commonly used to keep track of payments made to people who provide rent or services for businesses. They are also used by landlords or landladies if they used contractors throughout the year. Contractors include freelancers, self-employed individuals and service companies. Please note that 1099-MISC Forms are not used by individual taxpayers for personal expenses.
If you are unsure of whether your business needs to issue 1099s, you can reach out to David Gallagher CPA for a consultation or you can also visit the IRS website, www.irs.gov
If preparing 1099-MISC Forms on your own, you can receive the forms by ordering them from the official IRS website or by picking them up from a local post office or supply store. Make sure you pick these forms up early so you don’t have to worry about missing the deadlines.
If you already know that you must file this form for tax season, there are a few ways you can get ready beforehand.
First, you should reach out to the contractors you worked with to make sure the information you have on them is correct. This information includes addresses and tax ID numbers for each person you worked with.
Addresses can change over time, so reach out to clients to make sure the information you have is up-to-date. One way to do this is to retain a completed Form W-9 for each client, since this form will help you confirm the tax ID numbers.
From there, review your financial information to ensure that you’ve tracked all the 1099- MISC applicable payments you’ve made over the past year.
In 2019, new rules have been set up in regards to filing Form 1099-MISC, so be careful if you don’t want to miss any deadlines. If you prepare these forms yourself, deadlines can be found on the IRS website, www.irs.gov.