As you begin thinking about tax return filing, we want to make you aware of two new questions on the business tax returns that must be answered by every business owner. The questions are related to the filing of Forms 1099.
· Did you make payments in 2012 that would require you to file Form 1099?
· If yes, did you or will you file all required Forms 1099?
1099 Forms are required to be filed with the federal government to provide information regarding certain payments your business has made. If your trade or business makes payments for the following items to an unincorporated business, trust, LLC, partnership, or individual, in the amounts specified below, you are required to file Form 1099.
1. Subcontractors or others providing services - $600 or more
2. Rents and commissions - $600 or more
3. Interest or dividends - $10 or more
4. Pension / profit-sharing plans - $10 or more
5. Direct sales of consumer products of at least $5,000 to a buyer for resale anywhere other than a permanent retail establishment
6. All payments to attorneys must be reported regardless of whether the recipient is a professional corporation
The due date for filing Form 1099 with the government is February 28, 2013. Forms should be mailed to recipients by January 31, 2013. The penalties for failure to file Form 1099 can be substantial. The responsibility for filing the Form 1099 rests with you, the business owner. It is the responsibility of the individual / business receiving the Form 1099 to report it on their tax return.
Please call our office, 317-248-2202, if you have any questions about filing 1099s.