Deal Pack Blog
Don’t Forget to Print Those 1099’s!
As another year has come to an end, and the accountant’s workload has picked up with closing the books and tax reporting and preparation. It is important to remember that in addition to provide W-2 to your employees, you must also provide 1099 MISC for payments made in the course of your business. Any person you have paid at least $600.00 in rents, services (including parts and materials), other income payments, medical and health care payments, generally, the cash paid from a notional principal contract to an individual, partnership, or estate, and any gross proceeds of $600 or more paid to an attorney.
Generally, payments to corporation or payments for merchandise like telegrams, telephone, freight, storage, and similar items do not have to be reported on 1099-MISC. Also, payments of rent to real estate agents and to a tax-exempt organization including tax-exempt trusts (IRAs, HSAs, Archer MSAs, and Coverdell ESAs), the United States, a state, the District of Columbia, a U.S. possession, or a foreign government are exempt from reporting.
Payments made with a credit card or payment card and certain other types of payments, including third party network transactions, must be reported on Form 1099-K by the payment settlement entity and are not subject to reporting on Form 1099-MISC.