**January 31, 2025 and Additional Due Dates Below**
Many businesses underestimate the time required to collect and confirm the information needed to accurately prepare and file IRS Form 1099. Best practice is to request and receive a Form W-9 from the contractor/vendor prior to making payment as this will help immensely in order to file timely.
Some Commonly Issued Forms: 1099-NEC, 1099-MISC, 1099-INT
Form 1099-NEC
File Form 1099-NEC, Nonemployee Compensation, for each person in the course of your business to whom you have paid the following during the year.
- At least $600 in:
- Services performed by someone who is not your employee (including parts and materials).
- Payments to an attorney.
Form 1099-MISC
File Form 1099-MISC for each person to whom you have paid during the year:
- At least $10 in royalties or broker payments in lieu of dividends or tax-exempt interest.
- At least $600 in:
- Rents.
- Prizes and awards.
- Other income payments.
- Medical and health care payments.
- Crop insurance proceeds.
- Cash payments for fish (or other aquatic life) you purchase from anyone engaged in the trade or business of catching fish.
- Generally, the cash paid from a national principal contract to an individual, partnership, or estate.
- Payments to an attorney.
- Any fishing boat proceeds.
Form 1099-INT
An often overlooked form, businesses that pay interest to an individual of $10 or more must file Form 1099-INT. For example, if a business pays interest on a shareholder loan, the business must issue a 1099-INT for the interest payments. The principal payments are not reportable.
Due Dates
Forms 1099-NEC are due to the recipient and the IRS on or before January 31, 2025, using either paper or electronic filing procedures.
All other 1099 forms are due to recipients on or before January 31, 2025, and file with the IRS by February 28 (March 31, 2025, if you file electronically).
If you would like further information on the filing requirements or need assistance with preparation, please do not hesitate to contact us.
Sincerely,
The EagleStone Tax & Accounting Services Team
