2018 Form 1099 Process and Reporting Requirements

2019 is just around the corner!  Let’s work together to make it a good start as we prepare for the 1099 filing deadline of January 31st. If we are preparing your 1099s, it is extremely important that we receive your information early.  We cannot begin processing your 1099’s until we have ALL the required information.  If your required documentation is not provided by January 7, 2019 we cannot guarantee completion by January 31st. 

If you are currently working with our Business Resource Group, please get in touch with your normal BRG contact and send this information through your usual manner of submission (ie:  RAS/Quickbooks).

If the previous paragraph does not apply to you, but you would like us to prepare your 1099s and you have not already informed us, please email Janet Pryor (jpryor@stancilcpa.com) with your contact information.  Please provide the requested information below by January 7th.  If needed you can use this spreadsheet for entering your 1099 info.  When ready to submit your documentation, please upload them through this secure link.

Reporting Requirement
For Calendar Year 2018, Form 1099-MISC or 1099-INT must be filed for certain types of payments that include the following:
•  Independent contractors (not incorporated) who performed a service for you, to whom you paid $600 or more.
•  Fees paid for legal services to a law firm or attorney (any entity type) of $600 or more in the normal course of trade or business.
•  Payments of $600 or more for all types of rents, such as real estate rentals for office space or machine rentals.
•  Other payments to individuals (not employees) of $600 or more for the year (i.e. referral fees)
•  Interest paid to family members or other individuals, and organizations (not incorporated) if it exceeded $10.

You are required to perform backup withholding at 28% of all payments made to independent contractors if they do not supply you with the appropriate tax identification number.  The IRS may also charge a penalty (up to $100 per form) for incorrect or late filed forms (missing names, SSN’s).

To avoid backup withholding, each 1099 payee must complete and sign a W-9 form.  You should have this form on file before making any payment(s) to a recipient that falls under one of the reporting requirements.  A copy of the W-9 form and instructions for completing are available on the IRS website (www.irs.gov) under Search Forms & Instructions.

As always, if you have any questions about this process, please reach out to your normal Stancil contact. 

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