Understanding Form 1099 Requirements for the 2024 Tax Season
As we approach the end of the year, it’s crucial for businesses to ensure compliance with IRS regulations, including issuing Form 1099s for qualifying payments. Filing these forms correctly can save your business from unnecessary penalties and ensure transparency with the IRS. Here’s what you need to know about who requires a Form 1099, what’s not included, and how Empire Financial Services can assist.
Who Needs a Form 1099?
Form 1099 is required for individuals or entities you’ve paid $600 or more for goods or services in the course of your business.
This includes:
Independent Contractors or Freelancers: Payments for work performed, such as consulting or professional services.
Attorneys: Regardless of their corporate status, attorneys must receive a Form 1099 for payments over $600.
Landlords or Property Owners: Payments made for rent fall under 1099 reporting requirements.
Income Recipients: Individuals who received interest, dividends, pensions, or distribution income from your company.
What Isn’t Reported on a Form 1099?
Certain payments do not require Form 1099, including:
Payments to Corporations: Except for specific reportable payments or attorneys, corporate payments are exempt.
Employee Wages: These are reported separately using Form W-2.
Payments to Tax-Exempt Organizations: No 1099 is required for entities recognized as tax-exempt.
How Empire Financial Services Can Help
Managing 1099 compliance can feel overwhelming, especially for businesses with multiple vendors or contractors. At Empire Financial Services, we provide comprehensive 1099 filing support to ensure your forms are prepared and submitted accurately and on time.
Stay ahead of your tax season responsibilities and focus on what matters most—growing your business. Let us handle the details so you can move into 2025 with confidence.
