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IRS Requirements to Provide Form 1099-MISC for the 2019 Tax Year

November 1, 2019
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The Marston Group, PLC would like to provide our clients and friends with important information regarding Internal Revenue Service requirements for issuing Form 1099-MISC for the 2019 tax year to the appropriate recipients.  Please review this information carefully, as the IRS imposes significant penalties for failing to provide these tax forms to all required recipients by the statutory deadlines.  

Every business must provide a Form 1099-MISC to any entity or individual who provided them with $600 or more in services during the year, including rent payments.  This requirement to provide a 1099-MISC also applies to individuals who conduct any type of business reported on their Form 1040 (including Schedule C, Schedule E, Schedule F, etc.)  There is a filing exception for payments made to corporations.  However, providers of all legal services must be issued a  Form 1099-MISC regardless of how the providing entity is structured (i.e., whether it is incorporated or not).  Form 1099-MISC must be provided to the recipient and also filed with the government no later than January 31, 2020.  

If you would like our assistance with preparing your required Forms 1099, we will need the following information:

  • Service provider's complete name
  • Employer Identification Number (if a business) or Social Security Number (if an individual)
  • Mailing address of service provider
  • Total dollar amount you paid to the service provider during 2019

If you are unable to provide us with this information, we can analyze your accounting records/data and determine who should receive Forms 1099 from you for the 2019 year.  However, if you choose this route, we will still need you to provide us with the Employer Identification Number or Social Security Number, as well as the mailing address, of each service provider to whom you must issue Form 1099.

If you would like our firm’s assistance with preparing your Forms 1099, we will need all of the information outlined above for each of your 1099 recipients, or in the alternative, a complete copy of your 2019 accounting data, no later than Friday, January 10, 2020.   

PLEASE NOTE:  The ability to obtain an extension of time to file a Form 1099-MISC reporting an amount in Box 7 (Nonemployee Compensation) is extremely limited to very specific circumstances; no automatic extension of time to file is available.  An automatic extension of time to file is available for 1099-MISC if reporting information in a box other than Box 7, and for other types of Forms 1099 (other than 1099-MISC).

If we provide payroll services to your business, we will also need your 2019 payroll data no later than Friday, January 10, 2020 in order to meet the January 31 deadline.

Please contact Heather Starnes or Brooke Herring at 901-761-3003 if you have any questions regarding these payroll reporting requirements. 

The Marston Group, PLC

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