SULLIVAN & COMPANY
CERTIFIED PUBLIC ACCOUNTANTS
PAUL F. SULLIVAN, CPA
RAJ GOENKA, CPA
MONIKA BENKOVIC, CPA
November 11, 2016
To: Our Clients
From: Paul F. Sullivan, CPA
Raj Goenka, CPA
We are sending you this memo to inform you of the requirements for Form
Businesses should issue a Form 1099-MISC to each individual, partnership,
limited liability company, or sole proprietorship that you have paid
during the year $600 or more for services performed by someone who is not
your employee (including parts and materials). There is no requirement
that you send Form 1099 to corporations, although some companies do this
unnecessarily. Additionally, a Form 1099-MISC is required for services
paid to attorneys regardless of their entity type. No Form 1099 is
required for payments for merchandise.
Examples of payments paid to the above types of entities that might
require a Form 1099-MISC would be rents, attorney's fees, contract labor,
director's fees, commissions, and any compensation not included on a W-2.
The 1099-Misc must be provided to the taxpayer by January 31, 2017 and
this year the IRS' copy must also be provided by January 31, 2017 or
penalties will apply.
In prior years the penalties for failure to file Form 1099 with the IRS
and failure to provide copies of 1099s to payment recipients were $50 per
event. For 2016 in many cases the penalty could be as much as $1,000 per
each omitted or incorrect 1099-MISC.
If you need a Form W-9 to request a Social Security number or federal ID
number for a Form 1099, the form is available for download at
Client Center/Tax Forms link.
Please let us know if you have any specific questions in regards to Form
1099. You can also refer to the instructions for Form 1099-MISC.
If you would like our assistance preparing Form 1099 for your company,
please forward a completed Form W-9 to our office and we will follow up
with any additional information needed. If we do not receive a Form W-9
with the information to prepare Form 1099 for your company, we will assume
if they are required that you are handling it appropriately on your own.
Please pardon the reminder if we are already assisting you with this
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|The opinions contained herein are not
intended to be investment advice or a solicitation to buy or sell any
securities. Information obtained from sources deemed to be reliable, but
accuracy or completeness is not guaranteed. Past performance is not a
guarantee of future results. Performance figures contained herin do not
represent actual client portfolios or results. Actual results may
significantly differ from the model portfolio returns presented. Archer
Investment Corporation manages the Archer Funds. You should carefully
consider the investment objectives, potential risks, management fees, and
charges and expenses of the Funds before investing. The investment return
and principle value of an investment in the Funds will fluctuate so that
an investor’s shares, when redeemed, may be worth more or less than their
original cost. The Fund prospectus contains this and other information
about the Fund, and should be read carefully before investing. You may
obtain a current copy of the prospectus by calling 800-581-1780.