A REMINDER THAT FOR YOUR PAST YEAR (2016), THE 1099 FILING DEADLINE HAS BEEN CHANGED. THE FEDERAL GOVERNMENT MUST NOW RECEIVE ALL 1099s NO LATER THAN JANUARY 31, 2017
If you have paid anyone $600 or more during the calendar year 2016 for business fees, services, interest, (including mortgage or loan payments made to someone other than a bank), commissions, dividends and /or business rent, you are responsible for sending out 1099s.
NOTE: payments to Partnerships, Law Firms [even if incorporated], LLC’s or LLP’s are not exempt from receiving 1099s. Only corporations (other than law firms) are exempt from receiving 1099’s.
If you’ve paid anyone for services for 2016 and want to deduct the expense, not filing a 1099 may cause the deduction to be disallowed upon examination. Please note: not filing 1099 forms or filing incorrect 1099 forms is subject to a penalty if the amounts paid are deducted on a tax return.
The following recipients (not payers) are exempt:
1. Corporations, except for law firms,
2. Employees with taxes withheld,
3. Documented payments for reimbursement of expenses and/or purchases.