January is a big month for 1099 compliance. 1099-NEC forms need to be sent to both recipients and the IRS by the end of the month. Many other types of 1099 forms also need to go to recipients by January 31, 2023 — although the filing date to the IRS may be later — but either way, it’s one of the busiest times of the year. We offer some resources for getting your head wrapped around the task ahead.
Join the Conversation
This year, we’ll invite you to engage directly with other IOFM Members in the Forums by asking a question related to each month’s Insider topic. Share ideas with your peers, engage in lively discussion, get and give help.
This month’s question:
How do you approach researching and implementing each year’s changes to 1099 reporting? What resources do you use, and what have been your biggest challenges within recent memory? Got some advice for your peers?
Are Your Vendors Exempt?
Some of AP’s payees may be exempt from 1099 reporting, but it’s important to make an informed decision. For example, charitable organizations tend to be exempt, but what about corporations? And can medical or legal services providers be exempted?
MEMBER WEBINAR: Form 1099 Best Practices
Join IOFM and Cokala on January 26th for this timely webinar, Form 1099 Best Practices: Start the Year with Strong Compliance for 2022 Filings and 2023 Anticipated Changes, to help you keep on track for compliance with the upcoming filings of 2022 Forms 1099 and procedures to build year-long compliance in 2023 with requirements to identify reportable payments, solicit tax ID numbers and backup withhold federal income tax when required.
Outsourcing Your 1099s
Coming hot on the heels of your year-end closing tasks is 1099 season. With so much of the process needing to be done by the end of January, you may end up wondering if it wouldn’t be better to just outsource your 1099s. Here are some things to consider.
Reporting Installation Charges
Our tax experts explain how to deal with a payment that includes both equipment and services billed as a lump sum — in this case, a single line item for a medical device rolled up with its installation charge. Do you report the whole thing?
FREE WEBINAR: Errors to Avoid During 1099 Reporting Season
1099 reporting is completed once a year, which makes it difficult for anyone to be an expert at something done so infrequently. Join IOFM and Sovos for this free webinar to learn about the 10 common pitfalls and errors that occur during 1099 reporting season so you can avoid or limit the impact those errors can have on your process and overall compliance this reporting season.