1099-Misc Guide

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


Simple Rule – Easy to Remember

One person’s expense is the other person’s income.

Congress requires the 1099.