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1099InformationGuideAbout UsLittlefield, Fanning & CO. is experiencedin these issues and qualified to helpyour business navigate the varyingrequirements and difficulties presentedby vendor/contractor compliance. Wewill continue to offer our services for1099 preparation. Starting this year, we are also offering anexpense management service, to helpthose who wish to improve their 1099compliance as well as increase theirinternal financial transparency. Read moreabout the features of this service offeringbelow:IRS Penalty ChartThe IRS has released its updated chart forpotential assessed penalties regardinglate/missed 1099 filings. Note: Thesepenalties are per individual form.Mapping of internal processes andcontrols, with personalizedrecommendations for yourbusiness.Comprehensive spend analysisthat offers increased visibility intospending and cost patterns. YearDueUp to 30Days Late31 DaysLateThroughAugust 1AfterAugust 1or NotFiledIntentionalDisregard202420232022$60$50$50$120$110$110$310 $630$290$280$580$570Filing Due Dates for Common Forms: 1099-NEC - Jan. 31st, 20241099-MISC - Mar. 31st, 2024 1099-DIV- Mar. 31st, 2024Prepared by LITTLEFIELD, FANNING & CO. Ensuring better compliancewith recommendedstrategies to improve record-keeping.
Contact Us+1 360-956-1040TaxProcessCompliance@lfcocpa.comwww.lfcocpa.com673 Woodland Square Loop,Lacey, WA 98502Why is 1099 filingrequired?The primary purpose of filing a 1099 is toreport non-employment income to theInternal Revenue Service (IRS) so they cancorrectly assess the amount of tax thepayee owes. Although the filing record isused to match income reporting from thepayee, it is the requirement of the payer todistribute them or withhold tax for thepayee.Generally, you are required to file a 1099form when payments to a non-employeeexceed $600. This can vary though, and itis important to consult a professionaland/or IRS guidance. How to PrepareThere are a few important ways that youcan prepare to file your 1099s.Confirm you have the necessarycompleted W9 forms.You should have a W9 form forevery vendor/contractor that youpay. Ensure you have properly recorded allpayments to non-employees. Be aware of due dates to avoidpenalties. Consult with a tax preparer who isknowledgeable in 1099 preparation.Recent ChangesThe IRS has announced a few changes tothe rules regarding 1099 filing:If you have more than ten 1099 forms,you must file them electronically.Payment processors must nowdistribute a 1099-K when sales exceed$600. Partnerships and Trusts with foreignmembers must now declare their statuson form W9, (Box 3b).Penalty amounts have increased as anadjustment for inflation. (Penalty chartshown on other side).
Contact Us+1 360-956-1040TaxProcessCompliance@lfcocpa.comwww.lfcocpa.com673 Woodland Square Loop, STE 220Lacey, WA 98502Why is 1099 filingrequired?The primary purpose of filing a 1099 is toreport non-employment income to theInternal Revenue Service (IRS) so they cancorrectly assess the amount of tax thepayee owes. Although the filing record isused to match income reporting from thepayee, it is the requirement of the payer todistribute them or withhold tax for thepayee.Generally, you are required to file a 1099form when payments to a non-employeeexceed $600. This can vary though, and itis important to consult a professionaland/or IRS guidance.How to PrepareThere are a few important ways that youcan prepare to file your 1099s.Confirm you have the necessarycompleted W9 forms.You should have a W9 form forevery vendor/contractor that youpay.Ensure you have properly recorded allpayments to non-employees.Be aware of due dates to avoidpenalties.Consult with a tax preparer who isknowledgeable in 1099 preparation.Recent ChangesThe IRS has announced a few changes tothe rules regarding 1099 filing:If you have more than ten 1099 forms,you must file them electronically.Payment processors must nowdistribute a 1099-K when sales exceed$600.Partnerships and Trusts with foreignmembers must now declare their statuson form W9, (Box 3b).Penalty amounts have increased as anadjustment for inflation. (Penalty chartshown on other side).
Contact Us+1 360-956-1040TaxProcessCompliance@lfcocpa.comwww.lfcocpa.com673 Woodland Square Loop,Lacey, WA 98502Why is 1099 filingrequired?The primary purpose of filing a 1099 is toreport non-employment income to theInternal Revenue Service (IRS) so they cancorrectly assess the amount of tax thepayee owes. Although the filing record isused to match income reporting from thepayee, it is the requirement of the payer todistribute them or withhold tax for thepayee.Generally, you are required to file a 1099form when payments to a non-employeeexceed $600. This can vary though, and itis important to consult a professionaland/or IRS guidance.How to PrepareThere are a few important ways that youcan prepare to file your 1099s.Confirm you have the necessarycompleted W9 forms.You should have a W9 form forevery vendor/contractor that youpay.Ensure you have properly recorded allpayments to non-employees.Be aware of due dates to avoidpenalties.Consult with a tax preparer who isknowledgeable in 1099 preparation.Recent ChangesThe IRS has announced a few changes tothe rules regarding 1099 filing:If you have more than ten 1099 forms,you must file them electronically.Payment processors must nowdistribute a 1099-K when sales exceed$5,000.Partnerships and Trusts with foreignmembers must now declare their statuson form W9, (Box 3b).Penalty amounts have increased as anadjustment for inflation. (Penalty chartshown on other side).
1099InformationGuideAbout UsLittlefield, Fanning & CO. is experiencedin these issues and qualified to helpyour business navigate the varyingrequirements and difficulties presentedby vendor/contractor compliance. Wewill continue to offer our services for1099 preparation. Starting this year, we are also offering anexpense management service, to helpthose who wish to improve their 1099compliance as well as increase theirinternal financial transparency. Read moreabout the features of this service offeringbelow:IRS Penalty ChartThe IRS has released its updated chart forpotential assessed penalties regardinglate/missed 1099 filings. Note: Thesepenalties are per individual form.Mapping of internal processes andcontrols, with personalizedrecommendations for yourbusiness.Comprehensive spend analysisthat offers increased visibility intospending and cost patterns. YearDueUp to 30Days Late31 DaysLateThroughAugust 1AfterAugust 1or NotFiledIntentionalDisregard202420232022$60$50$50$120$110$110$310 $630$290$280$580$570Filing Due Dates for Common Forms: 1099-NEC - Jan. 31st, 20241099-MISC - Mar. 31st, 2024 1099-DIV- Mar. 31st, 2024Prepared by LITTLEFIELD, FANNING & CO. Ensuring better compliancewith recommendedstrategies to improve record-keeping.
1099InformationGuideAbout UsLittlefield, Fanning & CO. is experiencedin these issues and qualified to helpyour business navigate the varyingrequirements and difficulties presentedby vendor/contractor compliance. Wewill continue to offer our services for1099 preparation. Starting this year, we are also offering anexpense management service, to helpthose who wish to improve their 1099compliance as well as increase theirinternal financial transparency. Read moreabout the features of this service offeringbelow:IRS Penalty ChartThe IRS has released its updated chart forpotential assessed penalties regardinglate/missed 1099 filings. Note: Thesepenalties are per individual form.Mapping of internal processes andcontrols, with personalizedrecommendations for yourbusiness.Comprehensive spend analysisthat offers increased visibility intospending and cost patterns. YearDueUp to 30Days Late31 DaysLateThroughAugust 1AfterAugust 1or NotFiledIntentionalDisregard202420232022$60$50$50$120$110$110$310 $630$290$280$580$570Filing Due Dates for Common Forms: 1099-NEC - Jan. 31st, 20241099-MISC - Mar. 31st, 2024 1099-DIV- Mar. 31st, 2024Prepared by LITTLEFIELD, FANNING & CO. Ensuring better compliancewith recommendedstrategies to improve record-keeping.