If you own a business and paid a vendor or subcontractor $600 or more during the 2020 tax year, you may have a 1099 filing requirement. The Form 1099 is issued to each vendor or sub-contractor to report the payments they received from you.
Form 1099’s are issued to those who meet the $600 threshold including individuals, partnerships, LLC’s and estates. Form 1099’s are not required to be issued to C corporations, S corporations, or LLC’s which elect to be treated as a C corporation or S Corporation for tax purposes.
You should have your vendors complete a Form W-9 to determine what type of entity they are and to obtain their Social Security Number or Federal Identification Number which is needed for filing the Form 1099. The deadline for issuing Form 1099’s is January 31st.
Please contact your Reese Henry Advisor for assistance should you have any questions.