SitNews - Stories in the News - Ketchikan, Alaska

Viewpoints: Letters / Opinions

GET YOUR 1099s FILED

By David G Hanger

 

January 14, 2015
Wednesday PM


Forms 1099 need to be sent to the recipients no later than January 31. There are a variety of Forms 1099, and this writing will be limited to discussing Form 1099MISC. This is the 1099 that is due if you paid someone what is termed ‘non-employee compensation.’ In other words if you paid someone without giving them a W2 as an employee of your company or firm, you need to file Form 1099 if the amount paid exceeds $600.

In point of fact since the Tax Reform Act of 1986 all transactions involving $600 or more technically require the issuance of a Form 1099. If you buy a dishwasher, washer & dryer, giant wall TV, or computer and pay more than $600 for the item, the law says you need to send Walmart, Dell, and/or Sears a 1099. This aspect of that law has never been enforced because it would require a paperwork flurry that would literally require the establishment of new business entities to handle the load, but I have no idea what the future holds.

For any labor payment, though, get those 1099s out by the end of the January. For several years now the IRS has a two-line questionnaire on the requisite forms that asks, “Were you required to file Forms 1099?” “Did you file Forms 1099?” YES or NO. The IRS does not put questions on a tax form for no reason. Expect extreme penalties and the possible disallowance of payments not reported on Form 1099.

It is easy. Get it done. Avoid the negative consequences.

David G Hanger, EA, MBA
Ketchikan, Alaska

 

Received January 14, 2015 - Published January 15, 2015

 

Viewpoints - Opinion Letters:

letter Webmail Your Opinion Letter to the Editor

 

Representations of fact and opinions in letters are solely those of the author.
The opinions of the author do not represent the opinions of Sitnews.

E-mail your letters & opinions to editor@sitnews.us
Your full name, city and state are required for letter publication.

Published letters become the property of SitNews.

SitNews ©2014
Stories In The News
Ketchikan, Alaska

Articles & photographs that appear in SitNews may be protected by copyright and may not be reprinted without written permission from and payment of any required fees to the proper sources.

E-mail your news & photos to editor@sitnews.us

Photographers choosing to submit photographs for publication to SitNews are in doing so granting their permission for publication and for archiving. SitNews does not sell photographs. All requests for purchasing a photograph will be emailed to the photographer.