Businesses (including not-for-profits) are required to file Form 1099-MISC for each person or company to whom you have paid at least $600 for rent, services and other specified payments. The penalties for not filing these informational forms can be up to $250 per unfiled form.
You are required to complete and send a Form 1099 if during the course of business you pay (in total) $600 or more (for services rendered) to anyone that is not a corporation. This rule includes payments for rent, payments to independent contractors, individual service providers, and professional service providers, such as attorneys, accountants, and consultants. These forms must be issued to recipients and postmarked by January 31, 2014.
Please keep in mind as you review your payees, vendors whose names include “LLC” may require a 1099. “LLC’s” (Limited Liability Companies), are not necessarily incorporated entities. For example, Alerding CPA Group is an “LLC”. If you paid our firm $600 or more during 2013, the Internal Revenue Service requires that you issue us a Form 1099-MISC.
If you have any questions or would like to discuss your 1099 filing requirements, please contact Alerding CPA Group at 317-569-4181 or visit our website: alerdingcpagroup.com. Alerding CPA Group is an Indianapolis-based public accounting firm.