Did you pay your mother more than $600 in 2020 to help with your business? Then you need to send her a 1099! Yes, even your mother!! Get her social security number and you should already have her address. How about that dude on Craigslist you paid $1000 to paint the office? If you don’t have his info then you probably shouldn’t be writing off that expense.
You have until January 31st to send out 1099s to all those contractors and service providers that aren’t incorporated. The IRS has pretty strict guidelines to follow and pretty stiff penalties if you don’t.
Here’s an article that provides more detail on the ins and outs of 1099s.
“When it comes to 1099s, many business owners find themselves in a guessing game, wondering what exactly the rules and requirements are. This is a dangerous game to play because the penalties add up quickly when it comes to 1099 mishaps. ”
As always, FLX Business Services is here to help with your 1099s and the rest of your bookkeeping needs.