If you use independent contractors to perform services for your business and you pay them $600 or more for the year, you are required to issue them a Form 1099 after the end of the year to avoid facing the loss of the deduction for their labor and expenses, and to avoid a monetary penalty. The 1099s for 2010 must be provided to the independent contractor no later than January 31, 2011.
In order to avoid a penalty, copies of the 1099s need to be sent to the IRS by the last day of February. The 1099s must be submitted on magnetic media or on optically scannable forms (OCR forms). This firm prepares 1099s in OCR format for submission to the IRS along with the required 1096 transmittal form. This service provides recipient and file copies for your records. Use the worksheet to provide us with the information needed to prepare your 1099s.
Please attempt to have the information to this office by January 20, so that the 1099s can be provided to the service providers by the January 31st due date.
If you have questions, please call our office.
- 9 Jan, 2011
- 0 Comments