Do you need to send 1099’s for payments made in 2018?
If you, individually, or your corporation, paid $600.00 or more to any one individual or required business (including LLC’s that are not taxed as a corporation) in 2018, you are REQUIRED to prepare a 1099 for each individual or business. (NOTE: No 1099 is required if you pay a Corporation).
- Click Here for IRS Rules: Publ 1779 – Indpdt Contractor or Employee
- Click Here for Biz Fact on 1099 Processing: Biz Fact – 1099 Reporting
Please note that the Payee must receive their 1099 by January 31st, 2019 and the IRS needs to receive their copy by January 31st, 2019.
PLEASE NOTE: The IRS will be imposing a penalty if you fail to provide the recipient and the IRS copies of the 1099’s. The penalty is $250 for each IRS and payee copy not filed or furnished to the recipient, respectively. For example, if you were required to do 5 – 1099’s and you do not do them, it would result in a penalty of $2500.
If you are required to issue 1099’s you have two options. Please choose one.
Option #1: Prepare these yourself by the due dates stated.
You can get the forms from the IRS directly by calling the IRS or purchasing them at your local office supply store.
Option #2: Business by Design will prepare these forms for a fee.
Our fee is $100.00 for two (2) 1099 forms and $25.00 for each additional form 1099. For example: we prepare 5- 1099’s-the cost is $175. These fees include preparing the 1099’s and the applicable 1096 form. We will not prepare these returns without a payment authorization on file. No charges will be processed until the 1099’s are completed and reviewed by you.
Click for Payment Authorization: Payment Authorization Form
Click for 1099 request form (FILL-IN): External 1099 Request
- Who the Payer is (you or corporation name)
- Who the Payee is (the name of the person or business that was paid)
- Address of the Payee.
- Social Security Number of the Payee.
- Amount Payee was paid in 2018.
- What is payment for: services, rent, mortgage interest, interest, etc.
FOR 2018: All of your 1099 information will need to be uploaded to us using the Secure Exchange on myBBDPass by January 23rd, 2019. Any handwritten information must be legible. To view an example of what the Secure Exchange folder looks like, click here: myBBDPass Secure Exchange Instructions
If you would like to download a complete copy of this information click here: myBBD 1099 Reporting Information 2018
To log into your myBBDPass Account, click here: myBBDPassLogin
PLEASE BE CERTAIN YOUR INFORMATION IS CORRECT: There is a $200.00 fee for 1099’s that need to be corrected and reissued because of erroneous information received. Therefore, it is important you send us the correct and complete information.
If you have any other questions, you can contact Karin Horkey at Business By Design (firstname.lastname@example.org) or 952-392-1210.