DO YOU OWN A BUSINESS? DID YOU PAY A SPECIFIC VENDOR FOR SERVICES OR RENT IN THE AMOUNT OF $600 OR MORE IN 2021? IF SO, YOU NEED TO PROVIDE THE VENDOR OR RENTAL COMPANY A 1099misc.
THE IRS WILL ISSUE STEEP PENALTIES FOR FAILING TO PROVIDE A 1099misc WHEN REQUIRED.
PENALTIES RANGE FROM $50 PER 1099misc TO $186,000 PER 1099misc form. THE PENALTIES INCREASE BASED ON THE DATE THE FORM IS FILED.
IT IS ALSO IMPORTANT TO FILE THESE FORMS WITH THE CORRECT TAXPAYER INFORMATION. PENALTIES APPLY WHEN THE CORRECT INFORMATION IS NOT PROVIDED TO THE IRS.
CHECK OUR IMPORTANT DOCUMENTS PAGE ON THIS WEBSITE AND PRINT FORM W-9 TO HAVE YOUR VENDORS FILL OUT AND RETURN TO YOU. YOU SHOULD HAVE A W-9 ON FILE FOR ALL VENDORS. (HINT- IT IS MUCH EASIER TO GET THIS FORM BEFORE YOU WRITE THE FIRST CHECK TO THEM, THAN A YEAR LATER WHEN THE FORMS ARE DUE)