Are you a business owner? Did you know that the IRS requires that a Form 1099 be sent to each independent contractor who provided at least $600 worth of services to your business in 2018? The deadline for businesses to send out 1099s is 1/31/19. This deadline is to ensure that the contractor receives the 1099 in time to include it in her/his own tax return to record income generated. The contractor receives one copy AND the IRS receives a copy.
This is important AND there are exceptions (electronic payments) and rules (based on contractor’s company formation type) so please refer to the IRS website and/or contact your accountant for full details. Really, please rely on the experts!
Here is a link to info about Form 1099: IRS WEBSITE
There are hundreds of things to remember when running a business so I urge you to enlist the advice of tax and legal professionals to ensure that you are compliant with state and federal requirements. Again, please rely on the experts: the investment is worth it.
If reading this is making you nervous, TAKE A DEEP BREATH and contact me to help you alleviate your concerns. My goal is to make things easier for innovators and business owners because I have BEEN THERE. In addition to offering services to accelerate and execute your product and service ideas, I also offer “Power Hour” for brainstorming and to provide “tune ups” to make sure that you and your biz are on track. Contact me to schedule your call. email@example.com
PS: While I am not a CPA or attorney, I retain both to help me run my businesses so I know the importance of how and when to engage these specialists!