1099 Developments for 2017 – New Rules

Please note that IRS moved the deadline to file 1099 Forms with the IRS for Qualifying Payee’s that received Nonemployee Compensation in excess of $600 from your company during the 2016 calendar year from March 31st to January 31st of 2017.  This includes freelancers, consultants, and other service providers.

A Qualifying Payee is:

  • A Sole Proprietor
  • LLC
  • Partnership
  • -that provides services to your business, such as an attorney, a freelancer, a consultant, or a subcontractor
  • -and received over $600 from your business during the year

A Qualifying Payee is not:

  • A provider of goods to your business (you buy materials from a supply-house, or purchase office supplies, for example)
  • A service-provider that is a Corporation – many companies choose to issue 1099 Forms to corporations as well in order to over-report to IRS.  It is not required by IRS, but is accepted by IRS should you wish to do so.

Please note that this deadline change only affects Nonemployee Compensation reported on 1099-MISC.  It does not effect the deadline for reporting rents, other income (such as prizes, no-fault settlement income, or other miscellaneous payouts not for services rendered).

We are available to consult with you regarding 1099 Filing.

Warm regards,