Are you ready to file your 1099s?  Not sure if you are required to file?  Don't worry! We have the answers.

Frequently Asked Questions:
1099s

How do I know if I need to file?

If you paid a unincorporated vendor or contractor over $600 in the calendar year for services or rent then you are required to file. Also, if you provide health insurance to your employees and paid premiums in excess of $600 you will need to file. This is one exception where you will file even if the recipient is a corporation.

When is the deadline?

1099s must be postmarked to their recipients no later than January 31, 2010. The deadline to mail 1099s to the IRS is March 1, 2010.  If you choose to electronically file you have until March 31, 2010.

What are the penalties for not filing?

There is a $15 penalty per return if you file within 30 days after the due date. The penalty increases to $30 per return if filed more than 30 days after the due date but before August 1, 2010.  After August 1, 2010 the fine jumps to $50 per return.

What information do I need to file 1099s?

Ideally you have a completed W-9 on file for any person or business that you work with during the course of the year.  At a minimum you will need the person or company's full legal name, their current address and either their social security or employer identification number to complete the 1099 forms. The rule of thumb is to make a reasonable effort in sending the 1099s. This means that if it turns out you do not have the most current address because they have moved you are still considered to have filed.

The IRS 1099 Publication offers many more answers. If you want help filing your 1099s, we'd love to help you out. Contact us at info at thinkconsilio dot com, 376-1696, or on Twitter (@Consilio).