SULLIVAN & COMPANY
CERTIFIED PUBLIC ACCOUNTANTS

 

PAUL F. SULLIVAN, CPA                                                                                                RAJ GOENKA, CPA

MONIKA BENKOVIC, CPA                                                                                               BRIAN L. GOLDFARB, CPA

 

 

January 6, 2016
 

MEMO


To:      Our Clients

From:  Paul F. Sullivan, CPA,
           Raj Goenka, CPA, Tax Department Manager

 

RE:      Form 1099
 



We are sending you this memo to inform you of the requirements for Form 1099. We receive many questions in this area, generally in the month of January, so we are sending this memo to inform you of the answers ahead of time.

All companies have a requirement to file Form 1099 by February 1, 2016. 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 form should be provided to the above referenced entity types by February 1, 2016 and should be filed with the IRS along with Form 1096 by February 29, 2016 or filed electronically by March 31, 2016.

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 www.eSullivan.net under the Client Center/Tax Forms link.

Penalties for failure to file Form 1099 with the IRS and failure to provide copies of 1099s to payment recipients range from $100 to $250 per Form 1099.

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 filing.

 

 

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