If you run your own business and you pay non-corporate entities for goods or services, you need to read this to stay in compliance!
As a business owner, you must issue a form 1099-MISC to any non-corporate entity that you have paid $600 or more during the tax year.
The IRS only gives you until January 31, 2020 to file the 2019 forms. That’s not much time after year end, so start doing some legwork now. We advise our client to have ALL new providers complete a W-9 at the start of the relationship, to avoid last minute problems.
Create (or ask your CPA) for a list of those to whom you need to issue 1099-MISC, and then have each name of that list complete and return to you a form W-9 (link here: https://www.irs.gov/pub/irs-pdf/fw9.pdf) so that you have all the information you need to file on time. This will help you avoid costly penalties for non-filing or late filing!
Honorine M. Campisi, CPA