Now is the time of year to start thinking about getting ready for tax season, including filing 1099 forms, if necessary.  

If you pay a subcontractor more than $600 in non-employee compensation during a tax year, you will need to have a W-9 form on file and issue them a Form 1099-MISC.  Those in the fishing industry must be supplied a Form 1099 regardless of how much compensation they received.  

The W-9 form will allow you to obtain the information needed to determine 1099 eligibility and will provide their taxpayer ID number for the 1099 form and a current address to send it to.  

Only unincorporated entities need to be sent 1099s.  The only exception to this rule is that legal service providers, such as attorneys, must receive a Form 1099 even if they are incorporated.  

The deadline to submit 1099 forms to the taxpayer is January 31st and the deadline to submit the IRS copy is February 28th.  Feel free to contact us if you need any help with filing!