Zulch Tax Consultants
A trusted member of your team since 1983
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ZULCHAT

Zulch Tax News & Updates

Form 1099 Processing, Annual Letter With Checklist & Holiday Closures

Does your business need to file form 1099-NEC or Form 1099-MISC?

These forms need to be filed by any business who pays an individual (non-employee) during the year for any of the following:

  • At least $600 in:

    • Services performed (including parts and materials) by someone who is not your employee

    • Payments/gross proceeds paid to an attorney (including partnerships or corporations)

    • Rents

    • Prizes and awards

    • Other income payments

    • Generally, the cash paid from a notional principal contract to an individual, partnership, or estate

    • Any fishing boat proceeds

    • Medical and health care payments

    • Crop insurance proceeds

    • Section 409A deferrals

    • Nonqualified deferred compensation

  • At least $10 in royalties or broker payments in lieu of dividends or tax-exempt interest

  • Sales totaling $5,000 or more of consumer products to a person on a buy-sell, a deposit-commission, or other commission basis for resale

  • Withheld any federal income tax under the backup withholding rules regardless of the amount of the payment

NOTE: Payments to vendors made via credit card, debit card, or third-party systems such as PayPal, are excluded from NEC and MISC calculations.

Our filing process includes Form 1099-NEC or 1099-MISC Part B which is due to each recipient by January 31, 2025, and Form 1099-NEC or 1099-MISC Part A along with Form 1096 which are due to the IRS by January 31, 2025.

Each 1099-NEC or 1099-MISC recipient should complete IRS Form W-9. The IRS places the responsibility on the payer to obtain this information. Payers may be subject to penalties for not obtaining this information. We recommend obtaining a completed W-9 from all subcontractors before any work is performed. 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:

https://www.irs.gov/instructions/i1099mec

 Annual Tax Letter & Checklist

In January, we will be sending our Annual Tax Letter & Checklist via email. 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.

 As a reminder, in observance of the holidays, our office will be closed December 24 – 27 and December 31 - January 1, and will re-open Thursday, January 2, 2025. 

We wish you and your loved ones Happy Holidays, and a safe, healthy, and Happy New Year.

Kevin Zulch