If your business makes payments for rents, services, or interest you may be required to file 1099 forms annually. You are required to issue a 1099 to any non-corporate (remember LLCs are not corporations) vendor that you pay at least $600 during 2013 for rents, services (including parts and materials), or interest. Payments to tax-exempt entities also are exempt from the 1099 requirement. There is an additional requirement regarding payments to attorneys. If you pay $600 or more during the year for legal services you have to file a 1099 form even if the payments were made to the attorney’s corporation. You also need to file 1099 forms for any payments you make to vendors or contractors (not employees) that you withhold taxes. You can request a recipient’s (or potential recipient’s) information by sending them a W-9 form. Click here to go to our website for a blank W-9 form. The recipient copy is required to be issued by January 31, and the IRS copy must be postmarked or electronically filed by February 28. More information regarding 1099 reporting can be found at www.irs.gov. Please contact us if you have any questions about 1099 reporting requirements.
