Page 3 - 1099 Ebook

Who Should Submit Forms 1099?

Anyone owning a business or rental
property is required by law to submit

Forms 1099 each year. This includes
S-Corporations, Partnerships, LLCs,

Sole-Proprietors (Schedule C filers),
and Landlord (Schedule E filers).

Who Should Receive Forms 1099?
A 1099 should be sent to all non-

incorporated businesses or individuals
providing business-related services or

rent during the year with aggregate
payments of $600 or more. This

includes (but is not limited to):
Accountants

Attorneys
Coaches & Referees

Consultants
Contractors, Plumbers, Electricians

& Other Repair Professionals
IT Professionals

Landlords

Who Does Not Need To Receive a

1099?
If a business is incorporated, you do

not need to send a 1099 to them. You When preparing 1099's for
can verify this fact by having them contractors, include all

complete a W-9 to keep in your files. amounts paid to them,
There is no harm in sending a 1099 to including payments for

an incorporated business, but you services and materials. The
could be hit with penalties for not contractor is required to

sending one. It's better to send one, if track job expenses and

you are unsure of a vendor's legal deduct those from the gross
status.. 1099 amounts on their
return.