Requirements to file Forms 1099 | MABETAX Houston

Jan 23 2021 22:01

All businesses, all profit and non-profit corporations, and some investment property owners are subject to the Internal Revenue Service requirements to file information returns (Forms 1099 series). IRS penalties for non-compliance currently range from $50 for each form filed late but within 30 days of the due date, to $500 per information return not filed due to intentional disregard of the filing requirements.
The IRS requires the form need to be filed by February 1, 2021, for every individual or non-corporate LLC that you paid over $600 in 2020 for nonemployee compensation for services during the course of your trade or business.
Examples of payments to independent contractors to include but are not limited to:
  • Professional service fees, such as fees to attorneys (including corporations), accountants, architects, contractors, engineers, etc.
  • Rental income
  • Royalties
  • Crop insurance proceeds
  • Substitute dividends and tax-exempt interest payments
  • Payment for services, including payment for parts or materials used to perform the services if supplying the parts or materials was incidental to providing the service.
  • Directors fees and other remuneration
  • Prizes and awards for services performed by nonemployees
  • Cash payments for fish
  • Payments by a federal executive agency for services
  • Gross oil and gas payments for a working interest
  • Taxable fringe benefits for nonemployees
For the timely filing for your 1099 forms you should have requested a W9 form from the independent contractors to obtain all the information needed (payee name, payee address, payee federal ID number), and we need to receive them no later than January 15, 2021.
 

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We offer a wide variety of tax planning services for both companies and individuals. Tax planning can save you time and money.

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MABE International Advisors, Inc.
Tel. + 1-281-741-3691

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