KLSM CPA Firm PLLC
|Posted on November 21, 2020 at 2:15 PM|
The truth about Form 1099-MISC and 1099-NEC: When to issue and what happens if you don't!
You may have heard the following myths:
- "I only have a couple 1099's so I don't have to file",
- "My vendors won't provide info so I can't file" or
- "If I don't issue a 1099, the IRS will just disallow the deduction if I don't file".
These are myths and simply are not true!
Here are the facts you need to know:
Do you need to file a form 1099-MISC and/or a 1099-NEC? Yes, you are required to file, even if you only have one 1099 to file. Please be aware that the rules have changed.
You must file a form 1099-MISC, Miscellaneous Income, when you have have paid for the following items during the year (in the normal course of business):
- $10 or more in royalties or broker payments in lieu of dividends or tax-exempt interest
- $600 or more for:
- Prizes and awards
- Other income payments
- Notional principal contract
- Fishing boat proceeds
- Medical and health care payments
- Crop insurance proceeds
- Certain payments to an attorney
- Section 409A deferrals
- Nonqualified deferred compensation
Beginning with the 2020 tax year, you must file Form 1099-NEC, Nonemployee Compensation (NEC), for any sole proprietorship/individual, single member LLC, or partnerships you paid at least $600 to perform services in the course of your trade or business, when that person is not your employee, excluding corporations.
In summary, Forms 1099-MISC and 1099-NEC are due on January 31st. Contact KLSM CPA Firm, PLLC if you need assistance with your filing or need information on how to file when a vendor refuses to provide information.
|Posted on October 16, 2019 at 10:35 PM|
Join KLSM CPA Firm, as we partner with the Small Business Expo to offer a FREE webinar on November 7, 2019 entitled, Protecting Your Business: An Accounting, Tax and Fraud Perspective. During this webinar we will cover the topics above and much more to help you protect your business. Don't wait until, the webinar is sold out...Register Today.
|Posted on September 2, 2019 at 6:35 PM|
Have you received a letter from the IRS? Do you owe back taxes? Stop your panicking! On this week's episode, we posted a short video that explains exactly what you need to do when you can't pay your taxes. Watch and Listen to the episode onYouTube: https://youtu.be/om-k64jlktc
|Posted on January 8, 2019 at 11:25 PM|
The Internal Revenue Service announced that the nation's Tax Filing Season will begin on Monday, January 28, 2019. Additionally, Tax refunds will go out, despite the government shutdown.
|Posted on October 7, 2018 at 10:50 PM|
|Posted on January 3, 2018 at 6:25 PM|
This is a friendly reminder that this year's filing deadline for issuing 1099's is January 31, 2018. Now is a good time to get your books up to date and identify who will need a Form 1099. Don't wait until the last minute!
- Do you or your business need to file a 1099? Generally, a 1099-MISC should be issued to any individual or entity paid $600 or more for nonemployee compensation, rent, prizes, awards and other types of income. This includes payments to attorneys, accountants, independent contractors, consultants, and web designers. Rent paid to a landlord is another reportable payment that is sometimes overlooked. You don't need to issue a 1099 to corporations (with some exceptions), or for payments made via credit card or a third party network.
- What information do you need to file a 1099? The standard way to get the information you need to file a 1099 is to ask your contractor/vendor to fill out Form W-9. This form will provide you with all the information needed to file a 1099. It is always a good idea to obtain a W-9 from a vendor before you pay them. This way, you will have the information you need to file a 1099 without the hassle of tracking them down later.
KLSM CPA Firm
|Posted on September 30, 2017 at 10:25 PM|
The life of a small business owner is typically very hectic as they are constantly juggling, customers, employees, and business operations. Although the former aspects of the business are very important, business owners must also manage their credit score. Here are a few tips to help protect your business credit rating:
- Limit your credit usage
- Manage your companies financial ratios
- Pay bills on time
- Avoid closing accounts
- Establish trade lines with your suppliers
- Check your business credit score
- Consider securing investors
|Posted on December 27, 2016 at 9:00 AM|
|Posted on November 11, 2016 at 7:40 PM|