Hi, I’m Bette Hochberger, CPA, CGMA, and our first filing deadline for this year, is January 31st, for 1099s. Ooh, fun stuff!
You might recall that they did change what used to be for contractors, subcontractors, people who you pay who are not employees; the IRS did change it to the 1099-NEC. Make sure you pull up the correct form, but there are other 1099s you could need to file, like if you pay rent. This is business, not personal, right? If you pay your business’ rent to a landlord who’s an LLC or an individual who owns the property, you have to 1099 them. You might not have realized. If you pay an attorney in the course of business, you probably have to 1099 them.
It’s not just subcontractors. This form is for anyone you paid over $600, whether to individuals, partnerships, LLCs, taxes, or partnerships. They all need it. Every year I have this conversation with at least one client who’s like, “Oh, I don’t have subcontractors. I don’t need to file a 1099-NEC.” And when we go through their transactions, we see, oh, there are people you need to put on 1099s. So go through all your transactions. Go through your vendors and get those W-9s so you can see if you need to issue them a 1099-NEC or not.
And that’s it. It’s a quick one, but it’s an important one. The IRS is cracking down. Every year they get more and more intense about filing 1099s. So don’t get in trouble. It’s an easy one to do, and you can even DIY. Check out my video walking you through how to fill it out. Or you can reach out to a CPA. We’ll get it done for you. That’s about it. Have a good one. See you next time.