SULLIVAN & COMPANY
CERTIFIED PUBLIC ACCOUNTANTS

 

PAUL F. SULLIVAN, CPA                                                                                               

RAJ GOENKA, CPA
MONIKA BENKOVIC, CPA                                                                                              

 

 

December 18, 2017
 

MEMO


To:      Our Clients

From:  Paul F. Sullivan, CPA
           Raj Goenka, CPA

             Radka Windt, Business Services Manager
 

RE:      Form 1099-MISC for Independent Contractors
 



We are sending you this memo to inform you of the requirements for Form 1099-MISC.
 

1.   Completed Form W-9, Request for Taxpayer Identification Number and Certification, with recipient's name, address, ZIP/postal code, and Social Security number. We want to make sure we have the most current name and address of the recipient as the information may have changed from last year.
     
2.   Total amount paid to the recipient in 2017. We do not always receive your bank statements or your QuickBooks file by January 10, 2018. If you are using QuickBooks, print the 1099 summary from your QuickBooks file and send us the totals. Otherwise, send us the total paid along with the information in #1 above.


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-MISC 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-MISC is required for payments to individuals.

Examples of payments paid to the above types of entities that might require a Form 1099-MISC would be rents, attorney fees, contract labor, director fees, commissions, and any compensation not included on a W-2.

The Form 1099-MISC must be provided to the taxpayer by January 31, 2018 and this year the IRS copy must also be provided by January 31, 2018 or penalties will apply.

In prior years, the penalties for failure to file Form 1099-MISC with the IRS and failure to provide copies of Form 1099-MISC to payment recipients were $50 per event. For 2017, in many cases the penalty could be as much as $1,000 per each omitted or incorrect Form 1099-MISC.

For your convenience, a Form W-9 is linked here for download. The form is also available for download at www.eSullivan.net under the Client Center/Tax Forms link.

Please let us know if you have any specific questions in regards to Form 1099-MISC.

 

 

4709 MONTGOMERY LANE, SUITE 201, BETHESDA, MD 20814 TEL (301) 657-8080 FAX (301) 657-9055
MEMBER AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS

 

 


 



4709 Montgomery Lane | Bethesda, MD 20814

Direct Dial (240) 316-3531 | Phone (301) 657-8080 Ext 102 | Fax (301) 657-9055
Website:
www.esullivan.net | E-mail: paul@esullivan.net
 

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.
 
 

Sullivan & Company | Certified Public Accountants | 4709 Montgomery Lane #201 | Bethesda, MD, 20814 | 301-657-8080