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...

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...