Zulch Tax Consultants
A trusted member of your team since 1983
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Zulch Tax News & Updates

1099 Processing & Annual Letter With Checklist

 Does your business need to file form 1099-NEC or Form 1099-MISC?

These forms need to be filed by any business who pays an individual (non-employee) during the year any of the following:

  • at least $600 in services (including parts & materials) by someone who is not your employee

  • gross proceeds of $600 or more paid to an attorney during the year (including partnerships or corporations)

  • at least $10 in royalties or broker payments in lieu of dividends or tax-exempt interest care payments, crop insurance proceeds, cash payments for fish/aquatic life you purchase from anyone engaged in the trade or business of catching fish, or, generally, the cash paid from a notional principal contract to an individual, partnership, or estate

  • any fishing boat proceeds

  • withheld any federal income tax under the backup withholding rules regardless of the amount of the payment

  • you made direct sales of at least $5,000 of consumer products to a buyer for resale anywhere other than a permanent retail establishment

  • rents, prizes or awards, medical and healthcare payments

Our filing process includes Form 1099-NEC or 1099-MISC Part B which is due to each recipient by January 31, 2024, and Form 1099-NEC or 1099-MISC Part A along with Form 1096 which are due to the IRS by January 31, 2024.

Each 1099-NEC or 1099-MISC recipient should complete IRS Form W-9. The IRS places the responsibility on the payer to obtain this information. Payers may be subject to penalties for not obtaining this information. We recommend obtaining a completed W-9 from all subcontractors before any work is performed. Payers must his form can be found on the IRS website:

https://www.irs.gov/pub/irs-pdf/fw9.pdf

For more information about 1099-NEC or 1099-MISC filing, please refer to:

https://www.irs.gov/instructions/i1099mec

Annual Tax Letter & Checklist

In January, we will be sending our Annual Tax Letter & Checklist via email. If you have had a change of address, or a change to any of your contact information (email, phone), please let us know as soon as possible.

As a reminder, in observance of the holidays, our office will be closed December 25 – January 1, and will re-open Tuesday, January 2, 2024.

We wish you and your loved ones Happy Holidays, and a safe, healthy, and Happy New Year.

 

Kevin Zulch