Friday, January 23, 2009

Form 1099-Misc due February 2

This is a reminder that 1099s, with a few exceptions, need to be mailed by Monday, February 2nd. Fines for late filing start at $15 per return (if filed within 30 days of the due date) and go up to $50 per return if filed after August 1 or not at all.

Businesses (and non-profits) need to send them to any individual or partnership if you paid them more than $600 during 2008. Professional fees to attorneys, doctors and other professionals are included. Payments to corporations are included only if they are for medical, legal or fishing activities.

You also need to send one if you paid someone more than $10 in royalties.

You can read the more detailed general instructions here or the more abbreviated 1099-Misc instruction here.

Finally, you should have a policy to require your non-corporate vendors to complete a Form W-9 prior to disbursing any payments to them. This will insure you have the required information you need at year end to properly prepare your 1099s. Don't wait until January to start gathering this data.

1 comment:

Jenna said...

Thanks for the pointers! Really helpful!