‘Tis the Season of 1099 Filing
by Mary Stange
Client Advisor – Senior
As an accounting firm servicing Catholic parishes and Schools we truly embrace the Reason for the Season and look forward with anticipation to celebrating Christmas with all of our clients. In the accounting world it is also the season to begin to prepare for annual tax filings, like Form 1099.
Form 1099 is a series of forms used by the Internal Revenue Service (IRS) to report various types of income other than wages, and salaries. The information necessary to file Form 1099 is found on form W-9, where the individual or entity discloses their tax information for filing purposes. This would pertain to any expenses to entities or persons outside of payroll. Examples include painters, private IT contractors, accounting services, plumbers etc. More specifically, Sole Proprietorships, Individuals, Partnerships, and LLCs that are Single member, LLC or LLC-P. Form 1099 is not required for supplies, merchandise or inventory. However, if you’re paying a plumber for parts and services, you would want to include the full total in the filed 1099, as the plumber would be responsible to report the cost of goods sold on their Schedule C.
Tax forms can feel complicated and overwhelming if you’re not accustomed to filing them. Luckily, St. Joseph Financial Services can help. Team-wide we enacted our robust process for reviewing eligible vendors in our clients’ expenses in preparation for year-end tax filing due January 31st. Additionally, we ensure all of our clients are in compliance with IRS standards, to have a physical copy of a signed W-9 on file for each 1099 vendor. Our knowledgeable professionals take all of the guesswork out of 1099 filing and are engaged to file Form 1099 on behalf of our clients.
Make financial clarity your New Year’s Resolution with St. Joseph Financial Services.