1099 Reporting Requirements


Taxpayers are required to certify on their business tax return(s), under penalty of perjury, that all required 1099 Forms have been filed. This reinforces the long standing requirement that 1099’s must be issued to all independent contractors to whom you have paid $600 or more during the calendar year. It applies to payments to individuals, LLC’s and corporations for medical or legal services. In order to properly complete your 1099’s, you should obtain a Form W-9  from each such vendor before making payment. In some cases, if you do not obtain the W-9 prior to paying the vendor, you may not be able to get the information after the fact.


Properly filed 1099’s are critically important for another reason. If they have not been filed, you can be liable for the payment of payroll taxes on the amounts not reported as well as significant penalties on those amounts. The only means of avoiding these taxes and penalties is a willingness on the part of the vendor to certify after the fact that the income was properly reported on his or her tax return and payroll taxes paid.


We would be more than happy to guide you through this process. Please contact Matt or Janet with questions.