Zulch Tax Consultants
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Zulch Tax News & Updates

Form 1099 Processing, Annual Letter With Checklist & Holiday Closures

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

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

  • At least $600 in:

    • Services performed (including parts and materials) by someone who is not your employee

    • Payments/gross proceeds paid to an attorney (including partnerships or corporations)

    • Rents

    • Prizes and awards

    • Other income payments

    • Generally, the cash paid from a notional principal contract to an individual, partnership, or estate

    • Any fishing boat proceeds

    • Medical and health care payments

    • Crop insurance proceeds

    • Section 409A deferrals

    • Nonqualified deferred compensation

  • At least $10 in royalties or broker payments in lieu of dividends or tax-exempt interest

  • Sales totaling $5,000 or more of consumer products to a person on a buy-sell, a deposit-commission, or other commission basis for resale

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

NOTE: Payments made via cash/check, Zelle, ACH/EFT, wire transfer, and online bill payment (bank to bank only) are not excluded from NEC and MISC calculations. Payments to vendors made via credit/debit cards are excluded from NEC and MISC calculations. Payments made via third-party networks such as PayPal and Venmo are typically not excluded from NEC and MISC calculations, but may be excluded only if payments are tagged as "goods and services" at time the payment is made.

Our filing process includes Form 1099-NEC or 1099-MISC Part B which is due to each recipient by January 31, 2026, and Form 1099-NEC or 1099-MISC Part A along with Form 1096 which are due to the IRS by January 31, 2026.

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. This 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 24 – 26 and December 31 - January 2, and will re-open Monday, January 5, 2026. 

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

Kevin Zulch