If the term “tax season” makes you gloss over, you’re not alone. Paperwork doesn’t keep the lights on. It does, however, keep the IRS out. Here’s what you need to know about 1099 tax forms for 2018 filing:
If you get questions from your contract workers, and you will, know that we’re here to help answer them. The most common (if off the record) question will com from independent contractors who earn just over the $600 minimum filing amount. “Do I really have to file?” Tell them that they do. Since by law you’re required to tell the IRS about the payments, and because your workers are therefore in the IRS system, a simple check by the IRS will alert them if a contractor fails to report income. If they don’t, they won’t face jail time, but the IRS will bill them later.
If you have questions, don’t hesitate to contact us.
Tax Tips for the Self-Employed
How the SECURE Act Impacts Small Business Owners
What You Need to Know About the QBI Deduction
Do You Need to Send Out 1099s?
Checklist for Maintaining Your Limited Liability: Avoiding Piercing the Corporate Veil
Why Small Businesses Need a CPA