1099-MISC Deadline Fast Approaching

The deadline for 1099-MISC reporting non-employee compensation (NEC) is 31 January 2019. To avoid IRS failure to file penalties, contact me for assistance and to inquire about preparation fees.

The use of form 1099-MISC is common for small business owners who have paid an independent contractor for a service (e.g., web design, photography, legal advice). If you paid someone any of the following during 2018, you need to issue them a 1099-MISC so they can properly report your payment as income. 

  1. at least $10 in royalties or broker payments in lieu of dividends or tax-exempt interest;
  2. at least $600 in:
    • rents;
    • services performed by someone who is not your employee;
    • 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 notional principal contract to an individual, partnership, or estate;
    • payments to an attorney; or
    • any fishing boat proceeds

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