1099 Processing & Annual Reminder
Annual Tax Letter & Checklist
In January, we will be sending our Annual Tax Letter & Checklist via email for the first time. If you have had a change of address, or a change to any of your contact information (email, phone), please let us know as soon as possible. Please keep an eye on your mail for a Zulch Tax postcard explaining some of our new electronic plans.
Does your business need to file Form 1099-NEC or Form 1099-MISC?
If so, we can take care of that for you!
NOTE: Beginning with tax year 2020, Form 1099-NEC is now used to report non-employee compensation (formerly reported in Box 7 on Form 1099-MISC), and Form 1099-MISC is used to report rents royalties, and other miscellaneous payments.
If you need for us to process any 1099 forms for your business, please submit the information to our office no later than January 6, 2022.
Our filing process includes Form 1099-NEC or 1099-MISC Part B which is due to each recipient by January 31, 2022, and Form 1099-NEC or 1099-MISC Part A along with Form 1096 which are due to the IRS by January 31, 2022. These forms need to be filed by any business who pays an individual (non-employee) during the year any of the following:
at least $600 in services (including parts & materials) by someone who is not your employee
gross proceeds of $600 or more paid to an attorney during the year (including partnerships or corporations)
at least $10 in royalties or broker payments in lieu of dividends or tax-exempt interest care payments, crop insurance proceeds, cash payments for fish/aquatic life you purchase from anyone engaged in the trade or business of catching fish, or, generally, the cash paid from a notional principal contract to an individual, partnership, or estate
any fishing boat proceeds
withheld any federal income tax under the backup withholding rules regardless of the amount of the payment
you made direct sales of at least $5,000 of consumer products to a buyer for resale anywhere other than a permanent retail establishment
rents, prizes or awards, medical and healthcare payments
Each 1099-NEC or 1099-MISC recipient should complete IRS Form W-9. This form can be found on the IRS website:
https://www.irs.gov/pub/irs-pdf/fw9.pdf
For more information about 1099-NEC or 1099-MISC filing, please refer to: