SULLIVAN & COMPANY
CERTIFIED PUBLIC ACCOUNTANTS

 

PAUL F. SULLIVAN, CPA                                                                                               

RAJ GOENKA, CPA
MONIKA BENKOVIC, CPA                                                                                              

 

 

December 11, 2018
 

MEMO


 

To:

Our Clients

 

 

 

 

 

 

 

From:

Paul F. Sullivan, CPA

 

 

Raj Goenka, CPA

 

 

Radka Windt, Business Services Manager

 

 

 

 

 

 

 

RE:

Form 1099-MISC for Independent Contractors for 2018

 

 

 

 

 

 



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

If you would like our assistance in preparing 2018 Form 1099-MISC for your company, please forward the following to us by January 9, 2019:
 

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. Each recipient must sign the Form W-9.
   
2. Total amount paid to the recipient in 2018. We do not always receive your bank statements or your QuickBooks file by January 9, 2019. 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. For payments to individuals, Form 1099-MISC is not required.

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 Form W-2.

The Form 1099-MISC is required to be provided to the recipient by January 31, 2019. The Form 1099-MISC must be filed with the IRS by January 31, 2019, or the penalties described below will apply.

For 2018, the penalties range from $50 to $530 per missed Form 1099-MISC, depending on how late the forms were submitted. Penalties for non-filing of Form 1099-MISC for independent contractors are higher than the above amounts.

We attach a Form W-9 for your convenience (click here to 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 regarding 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