Our Client Accounting Services group at MichaelSilver is excited to kick off the New Year by taking the first steps into our 2022 tax season as we tackle 1099 preparation!
There’s not a lot of new for 2022, but here’s a reminder to help you conquer your first New Year’s Resolution (get those 1099s done)!
General 1099 Information
- A reminder that form 1099-NEC, which was introduced last year takes the place of 1099-MISC to fulfill many of your 1099 reporting requirements. IRS Form 1099-NEC is issued to all individuals who are not employees, and all unincorporated businesses who received $600 or more for payment for services, awards, commissions, or fees. This includes payments of fees for service to all attorneys, whether incorporated or not.
- Form 1099-MISC is still to be issued for (payments of $600 or more) all rents, prizes and rewards, royalties (at least $10) and other income paid to non-corporate taxpayers, including shareholders. 1099-MISC is also used to report payments of $600 or more for medical services, whether the provider is incorporated or not. Also – form 1099 MISC is used to report gross proceeds paid to an attorney (for instance, for a settlement), Section 409A deferrals, and unqualified deferred compensation payments.
- Forms 1099-INT and 1099-DIV are used respectively, to report interest payments to shareholders and others and dividend payments to shareholders.
- 1099-NEC forms must be filed with recipients and the IRS by January 31, 2022 (whether you file paper copies or file electronically).
- 1099-MISC. INT and DIV forms must be filed with the IRS by February 28, 2022, if you file on paper, or March 31, 2022, if you file electronically and must be sent to recipients by January 31, 2022.
- You must file electronically for any 1099 type for which you have 250 or more recipients – 1099- MISC, NEC, DIV, or INT.
- If you don’t have the following information, you should have a Form W-9 prepared by anyone who qualifies per the above criteria to obtain social security numbers (SSN) for applicable individuals and Federal Employer Identification Numbers (FEIN) for unincorporated businesses. Note – some unincorporated businesses use the owner’s social security number – that’s fine (if you already have SSN/ FEIN information you can pass on this step).
More detailed information is available at IRS websites:
That’s about it on the 1099 front! Shall auld acquaintance be forgot? Well, maybe, but don’t forget to gather your information and send out those 1099s to your non-employees and other acquaintances!
Any questions or for help preparing your 1099s, please contact your MichaelSilver Tax, Accounting & Assurance, or Client Accounting Services representative at 847.982.0333!