You are required to issue a Form 1099 to each person that earned over $600 in a given year. These should be mailed by Jan. 31. However, there are exceptions to who should be issued a 1099. You also must send a special version to the IRS by Jan. 31. Here’s a tip: When you pay new people for the first time, have them fill out a W-9 that requests their address and Social Security number. This will make your annual filing requirement much easier.
- I started a business this year. How should I handle my accounting? What are my tax filing requirements?
- My current tax preparer does an OK job, but I always feel rushed during my tax appointment. Also, he’s difficult to reach when I have a question. I want to change to someone else, but I’m afraid that some information might get lost by going to the new person.
- Do you need to file a federal tax return this year?
- I just got a phone call from someone saying they were from the IRS. They wanted some personal information and my credit card number for back taxes that I owe. I don’t know what they are talking about. What should I do?
- I am about to start a new business and I think I want to incorporate or maybe be an LLC. Which should I pick?