Theresa Arndt, CPA

Another year has flown by and is almost in the books. With that means the Form 1099-NEC and 1099-MISC filing deadline is just around the corner ( January 31 for most).  Here are some key facts to remember about 1099's as we approach the new year. 1)  Bank account activity needs to be entered and reconciled through December 31. So if you’re not caught up through November (or September if a quarterly A&Co client), you’ll want to get on that ASAP so that there’s only one month/quarter to do in January. NOTE: Checks dated in 2023 that don’t clear until 2024 still must be counted towards 2023! They’ll simply appear as an outstanding item on the bank reconciliation. 2)  Anyone paid $600 or more  for services OR rents OR potentially a combination of services and materials by cash, check, or bank wire/ACH/transfer ( cumulative in the calendar year) require a 1099-MISC to be filed, unless the Form W-9 indicates otherwise…a little more on that later. Payme...

Chances are as a small business owner you’ve heard of Form W-9...and if not, there’s good news – I’m about to tell you all about it 😉 . Maybe you’ve been requested to provide it to a customer, or maybe I’ve asked you to get one for a contractor you’ve paid.   But do you understand why you’re requesting this form (or why it’s being requested of you), and what its purpose is? The Form W-9 essentially is an informational form that helps with Form 1099-MISC processing (that’s our primary focus here at least). The W-9 lists the person’s/company’s name, entity type, address, taxpayer identification number (either SSN or EIN), and signature certification. This gives all of the necessary information needed to file a Form 1099-MISC, other than the actual dollar amount paid to the person/company during the year (which should be available in your accounting records). It also certifies that the person/business is not subject to backup withholding , which essentially means that you as ...

It’s a new year and that means 1099 season is here!  I hope you have been collecting those W-9 forms from people because the IRS is cracking down on 1099 reporting.    If you don’t have W-9 forms signed and filled out, I suggest you start working on collecting those NOW...otherwise be prepared for possible penalties this year. What’s New Beginning last year, the IRS changed the deadline for filing government copies of 1099-Misc forms to January 31 st .  In case you weren’t aware the OLD deadline for most was February 28 th (March 31 st if filing electronically).  That means 1099 preparers have one to two less months to get the information required to prepare these forms this year. The IRS has always required the filing of 1099-Misc forms and there have always been penalties for not filing and filing late.  What’s new is that beginning last year the IRS started enforcing those penalties.  A few of our clients who self-prepare their 10...

It’s almost January, and that means Form 1099 season. Companies big and small are about to start churning them out and you can’t afford to ignore them. If you’re in business, that is you file a Schedule C, E, F, Form 1065, Form 1120 or Form 1120S, you need to pay attention to issuing them or face penalties .   New in 2011 to all federal business tax returns was a box asking whether any payments were made during the year that would require Form 1099 to be filed and a box asking whether or not you filed all required Forms 1099.    By asking the two questions prominently on the return, the IRS isn't only reminding taxpayers of their obligations but also setting a snare for taxpayers that habitually violate the law. If a taxpayer answers "no" and an audit shows he should have sent the forms, the answers could be evidence in favor of higher penalties.   So what are my Form 1099 obligations?   You need to send a Form 1099 to all service provider...