1 / 9

1099’s & W-9’s

1099’s & W-9’s. What is a 1099? An Information Return tax document businesses are required to file to report certain business transactions to the IRS. Who must file:

zenia-larson
Download Presentation

1099’s & W-9’s

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. 1099’s & W-9’s

  2. What is a 1099? • An Information Return tax document businesses are required to file to report certain business transactions to the IRS. • Who must file: • Any person, including a corporation, partnership, individual, government agency, estate, and trust, who make reportable transactions • Must be filed to IRS by February 28th and to recipients of income by January 31st.

  3. http://www.irs.gov/pub/irs-pdf/i1099gi.pdf http://www.irs.gov/pub/irs-pdf/i1099gi.pdf

  4. 1099-Misc • There are many 1099 information returns but the one that effects school districts the most is the 1099-Misc(miscellaneous income). • Reportable Items on the 1099-Misc($600 or more): • Payments to physicians, supplier health & medical services. • Payments for services performed for a trade or business by people not treated as employees. • Fish purchases, crop insurances • Gross proceeds paid to attorneys • Rent & Royalties

  5. 1099-Misc Recipients • Who are the recipients: • Sole Proprietorship/Individual • Partnership • LLC treated as sole proprietorship or partnership • Who are not recipients: • Corporations • LLC treated as corporation or S corporation

  6. 1099’s – Failure to File • Failure To File Correct Information Returns by the Due Date: • $30 per information return if you correctly file within 30 days maximum penalty $250,000 per year ($75,000 for small businesses) • $60 per information return if you correctly file more than 30 days after the due date but by August 1; maximum penalty $500,000 per year ($200,000 for small businesses). • $100 per information return if you file after August 1 or you do not file required information returns; maximum penalty choose to withhold on any reportable payment made to the $1,500,000 per year ($500,000 for small businesses).

  7. W-9 Form • The IRS states that a “person” who is required to file an information return with the IRS must obtain the correct taxpayer identification number (TIN) to report payments. • In order to identify which vendor receives a 1099 a W-9 or a similar form must be completed and kept on file.

  8. http://www.irs.gov/pub/irs-pdf/fw9.pdf Prepared by Sheryl Shaw Stewart

  9. 1099’s & W-9’s Questions?

More Related