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When are Gross Proceeds Reportable on the 1099 MISC Tax Form? -www.form1099online.com
In general, every business owner who makes gross proceeds in a tax year must EFile 1099 Misc if: • Services performed on the course of legal activity • The amount totaling exceeded $600 in a tax period. • Compensations paid not for performing attorney’s services.
For example, if you paid a lawyer $700 for performing legal services, then the first thing you need to do is: • Check whether the lawyer – an individual/Corporation. • If corporation members make sure that the lawyer – C or S corporation
Make sure that the amount made $600 or more to report it on the 1099 MISC Tax Form. • Finally, identify whether the payment for performing legal service related to business or trade.
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