1099 Reporting

Every year businesses need to file 1099s. Some examples of 1099s that need to be filed every year are the 1099-Misc, 1099-Nec, 1099-int, 1099-div.  

For the 1099-Nec, they need to be issued to the recipient and to the IRS by January 31st. The type of payments that need to be reported are payments for services performed for a trade or business by people not treated as its employees, such as a contractor. Some other examples are Awards, Bonuses, Prizes issued to nonemployees. A 1099 will need to be issued, if a payment threshold was $600 or more. 

For the 1099-Misc, the type of payments that need to be reported due to the recipient by January 31st and filed to the IRS by February 28th are the following: 

• Rent ($600 or more) 
• Royalties ($10 or more) 
• Payments to crew members by owners or operators of fishing boats including payments of proceeds from sale of catch. (all amounts) 
• Section 409A income from nonqualified deferred compensation plans (NQDCs). (all amounts) 
• Payments to a physician, physicians' corporation, or other supplier of health and medical services. Issued mainly by medical assistance programs or health and accident insurance plans. ($600 or more) 
• Fish purchases paid in cash for resale. ($600 or more) 
• Aggregated direct sales of consumer goods for resale. ($5,000 or more) 

For the 1099-Misc, the type of payments that need to be reported due to the recipient by February 15th and filed to the IRS by February 28th are the following: 

• Crop insurance proceeds. ($600 or more) 
• Substitute dividends and tax-exempt interest payments reportable by brokers. ($10 or more) 
• Gross proceeds paid to attorneys. ($600 or more) 

For additional questions, please reach out to your Pease Bell tax advisor.