1099-Misc Guide
Q-1: Who gets a 1099-Misc?
A-1: Any unincorporated entity that you have paid a total of $600.00 or more during the year for services or rents.
This applies to ordinary and necessary business expenses and expenses of operating any rental real estate.
Q-2: Are there exceptions to this simple rule?
A-2: Yes, any entity that you have paid a total of $600.00 or more during the year for legal services gets a 1099-Misc, even corporations.
Q-3: Is an LLC a corporation?
A-3: Generally an LLC is not a corporation.
Q-4: Is it against the law to issue a 1099-Misc to a corporation?
A-4: It is not a violation to issue a 1099-Misc to a corporation. However it is not required.
Q-5: What is the due date?
A-5: The 1099-Misc should be delivered to the recipient by January 31.
Q-6: Where are the instructions for 1099?
A-6: Click here to download the 1099-Misc instructions.
What do I need to prepare the 1099-Misc?
1) Accurate record of your payments.
2) The recipient’s complete:
a. Name
b. Address
c. Social Security Number or Federal Employer Identification Number
Gather this necessary information by providing the recipient with Form W-9 “Request for Taxpayer Identification Number and Certification.” A blank Form W-9 is available from the IRS at www.irs.gov or you can simply download it from the web site www.joebankercpa.com