Made a Payment
- Payments, in the course of your trade or business: (1099-MISC)
- Services performed by independent contractors or others (not employees of your business) (Box 7)
- Prizes and awards and certain other payments (see Instructions for Form 1099-MISC, Box 3. Other Income, for more information)
- Rent (Box 1)
- Royalties (Box 2)
- Backup withholding or federal income tax withheld (Box 4)
- Crewmembers of your fishing boat (Box 5)
- To physicians, physicians’ corporation or other supplier of health and medical services
- For a purchase of fish from anyone engaged in the trade or business of catching fish (Box 7)
- Substitute dividends or tax exempt interest payments and you are a broker (Box 8)
- Crop insurance proceeds (Box 10)
- Gross proceeds of $600 or more paid to an attorney (generally, Box 7, but see instructions as Box 14 may apply)
- Interest on a business debt to someone (excluding interest on an obligation issued by an individual) (1099-INT)
- Dividends or other distributions to a company shareholder (1099-DIV). Only applicable if your business is or was previously taxed as a C-Corporation.
- Distribution from a retirement or profit plan or from an IRA or insurance contract to a plan beneficiary(1099-R)
- Payments to merchants or other entities in settlement of reportable payment transactions, that is, any payment card or third party network transaction (1099-K)
Other Possible Reporting Situations:
- Payment of mortgage interest (including points) or reimbursements of overpaid interest from individuals (1098)
- Sale or exchange of real estate (1099-S)
- You are a broker and you sold a covered security belonging to your customer (1099-B)
- You are an issuer of a security taking a specified corporate action that affects the cost basis of the securities held by others (Form 8937)
- You released someone from paying a debt secured by property or someone abandoned property that was subject to the debt (1099-A) or otherwise forgave their debt to you (1099-C)
- You made direct sales of at least $5,000 of consumer products to a buyer for resale anywhere other than a permanent retail establishment (1099-MISC)
Not Required to File Information Returns
- You are not engaged in a trade or business.
- You are engaged in a trade or business and
- the payment was made to another business that is incorporated, but was not for medical or legal services or
- the sum of all payments made to the person or unincorporated business is less than $600 in one tax year
- “Did the corporation make any payments in 2017 that would require it to file Form(s) 1099? Yes or No?
- “If Yes, did the corporation file or will it file all required Form(s) 1099? Yes or No”
- $50 penalty per information return for filing a 1099 not more than 30 days late with the calendar year maximum increased to $536,000 or $187,500 for small business filers;
- $100 penalty per information return for filing a 1099 more than 30 days late and by August 1st with the calendar year maximum increased to $1,609,000 or $536,000 for small business filers;
- $260 penalty per information return for filing a 1099 after August 1st with the calendar year maximum increased to $3,218,500 or $1,072,500 for small business filers;
- $530 penalty per information return for intentional failure to file, with no maximum penalty.
Disclaimer: Any accounting, business or tax advice contained in this communication, including attachments and enclosures, is not intended as a thorough, in-depth analysis of specific issues, nor a substitute for a formal opinion, nor is it sufficient to avoid tax-related penalties. If desired, Newburg & Company, LLP would be pleased to perform the requisite research and provide you with a detailed written analysis. Such an engagement may be the subject of a separate engagement letter that would define the scope and limits of the desired consultation services.