We hope you had a good holiday season and are as excited for the new year as we are at MichaelSilver!
Our Client Accounting/Advisory Services group at MichaelSilver is ready to prepare your 2023 1099s!
There are minimal changes for 2023 preparation. The following is a reminder to help you conquer your every-year New Year’s Resolution…..get those 1099s done early!
A major change for the 2024 filing season – anyone who files 10 or more 1099s will need to electronically file all 1099s with the IRS (Internal Revenue Service).
You will separately receive an email with instructions if you will be using MichaelSilver to prepare your 1099s.
General 1099 Information
- A reminder that form 1099-NEC, which was introduced three years ago, 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, 2024 (whether you file paper copies or file electronically).
- 1099-MISC. INT and DIV forms must be filed with the IRS by February 28, 2024, if you file on paper, or April 1, 2024, if you file electronically, and must be sent to recipients by January 31, 2024.
- You must electronically file all 1099s if you have 250 or more total recipients across all 1099 types.
- If you do not 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 the IRS websites:
That’s about it on the 1099 front! We have passed the winter solstice, pitchers and catchers report in a few weeks, and spring is just around the corner!
Any questions or for help preparing your 1099s, please contact your MichaelSilver Tax, Accounting & Assurance, or Client Accounting/Advisory Services representative at 847.982.0333!