2012 form 1099 filing

As the year comes to a close, we wanted to take this opportunity to remind you of the filing requirements for Forms 1096 and 1099.

The Internal Revenue Service requires businesses and self-employed individuals who file Schedule C to issue a Form 1099 to any individual, partnership, incorporated law firm or unincorporated business they have paid in excess of $600 per calendar year for rents, services, prizes, and other income payments.  This is required whether these payments are spread out over the year or are paid in one lump sum. For example, because DeJoy, Knauf & Blood, LLP is a partnership, you are required to issue us a Form 1099 if you have paid us in excess of $600 for services.

If you made payments that meet these requirements, you are required by the IRS to obtain form W-9 from each individual or business to which the payments were made.  This ensures you have their correct name, address and either employer identification number or social security number and provides documentation to substantiate your expenses in the event you are audited.  That information, along with the amount and type of payment made, must then be reported to the individual or business via Form 1099.   The Form 1099 must be provided to the individual or business no later than January 31, 2013.  Copies of the Form 1099 and corresponding Form 1096 must be filed with the Internal Revenue Service no later than February 28, 2013.