Is a 1099 required?
Do you need to issue a 1099 form for payments paid during the tax year?
READ THIS BEFORE COMPLETING THIS SECTION
These questions will help detemine if a 1099 is required for a contractor paid during the tax year. 1099 Forms are required for payments of $600 or more for services provided by an Individual and some LLC's. Failure to file IRS 1099 forms can result in IRS Penalties.
Estimated Time to Complete:
Less than 3 minutes
Have you paid this contractor $600 or more for services this year?
*
Yes
No
IRS W-9 Form - Request for Taxpayer Identification Number and Certification
Answering these questions will determine your 1099 filing requirement
Has this Contractor provided you with a completed W-9 form
*
Yes
No
What do you need to do now? Step 1: Obtain a completed IRS form W-9 from this contractor for your records. Step 2: Return to this form and re-enter contractor data to review if a 1099 is needed.
IRS W-9 Form:
Click Here for Fill-in W-9 Form
.
If not already provided, please submit a copy of the completed W-9 to the firm.
What box was checked for line #3 - Federal Tax Classification (From IRS W-9 Form)
Individual
C-Corporation
Partnership
S-Corporation
LLC
Trust/Estate
LLC's can be taxed in a variety of ways, we need to go one step further to answer. How an LLC elects its tax status will determine your 1099 filing requriements. Please look closely at line #3 of the W-9 for the tax status of this LLC and indicate below.
What is the tax classification of the LLC?
Sole Proprietorship
C-Corporation
Partnership
S-Corporation
DO I NEED TO FILE A 1099?
YES - 1099 Needed! Based on how the IRS Form W-9 is completed, you are required to file a 1099 to this contractor for payments of
more than $600
paid in the tax year. Failure to do so can result in IRS penalties. Please reach out to our office when you are ready to provide details for contractors that qualify for a 1099. To evaluate if additional contractors will require a 1099, please press F5 or reload the browser window to reset the form.
NO - 1099 Not Needed! Based on how the IRS Form W-9 is completed, no 1099 is required. There are no 1099 filing requirements for S-Corporations, C-Corporations and LLC's taxed as S-Corps or C-Corps. To evaluate if additional contractors will require a 1099, please press F5 or reload the browser window to reset the form.
YES - 1099 Needed for this LLC! Based on how this LLC has elected to be taxed, you are required to file a 1099 to this contractor for payments of more than $600 paid in the tax year. Failure to do so can result in IRS penalties. Please reach out to our office when you are ready to provide details for contractors that qualify for a 1099. To evaluate if additional contractors will require a 1099, please press F5 or reload the browser window to reset the form.
NO - 1099 Not Needed for this LLC! Based on how this LLC has elected to be taxed, NO 1099 is requred. There are no 1099 filing requirements for S-Corporations, C-Corporations and LLC's taxed as S-Corps or C-Corps. To evaluate if additional contractors will require a 1099, please press F5 or reload the browser window to reset the form.
1099 is not needed for this contractor
To evaluate if additional contractors require a 1099, press F5 or reload the browser window to reset the form. Thank you for your time in completing this!
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