Who receives a 1099?

Anyone who was paid $600 or more for services on behalf of the business as a non-employment income should receive a 1099. However, there are many types of 1099s for different situations. Also, there are many exceptions to the $600 rule, meaning you may receive a 1099 even if you were paid less than $600 in non-employment income during the tax year. Know the IRS common laws.

How do I know?

Determine what type of relationship you have with a person or company to decide if you need to issue a 1099 to document the relationship, best way to do that is to request a W-9.

There are several factors, it is critical that business owners correctly determine whether the individuals or businesses providing services are in need of a 1099. If a business fails to issue a form by the January 31 deadline, the penalty varies, depending on how long past the deadline the business issues the form. Best practice going forward: DO NOT remit payment without first obtaining a W-9 Form.

W-9 and 1099 services for Non-Current Clients:

$225/hour with a 1-hour minimum

$6.00/per 1099 e-file; or $8.00/per 1099 if mailed

$8.00/per W-9 that needs to be requested for taxpayer identification

$100 additional rush fee after January 10^th.