If you paid any unincorporated service providers $600 or more during 2009, it’s almost time to send your 1099s out. The due date this year is February 1, 2010.
So, who might need a 1099 from you? You send 1099s to service providers, but not to vendors who sold you merchandise. Also, if your service provider operates as a corporation, you don’t need to send them a 1099. Who’s left? Any unincorporated:
- Computer support or repair techs
- Freelance graphic designers
- Virtual assistants and other virtual professionals
- Office cleaning services and janitorial services
- Accountants and bookkeepers
- Landscape maintenance, including snowplow companies
- Any other consultant who was paid by your business
- Any other person who received referral fees or commissions from your business
Remember that the vendor gets a copy of the 1099 and so does the IRS. With the IRS copies, you need to include a Form 1096 summary sheet that totals up all of your 1099-MISC forms.
This IRS has a handy Guide to Information Returns that will answer even more questions.
Deb Howard Greenleaf, EA, CEO and Principal, of Greenleaf Accounting Services provides virtual accounting and bookkeeping services and specializes in financial management to consultants, coaches, solo professionals, and other small business owners across the US. Deb is an Enrolled Agent (EA)—an IRS-licensed tax professional—and specializes in small businesses and entrepreneurs filing Schedule C or as an LLC. As an Advanced Certified QuickBooks ProAdvisor, Deb spends her day in QuickBooks Online and specializes in providing QBO support.