Attention Business Owners:
Filing of 1099’s is an area of greatly increased IRS scrutiny. All business returns now contain questions asking if you made any payments in 2011 that would require you to file a 1099, and if so, have you or will you file all required Forms 1099. These questions must be answered with a yes or no response.
Please be advised this is a heightened compliance issue, and the signature block of all tax returns contain the following language: “Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true, correct and complete.”
As a reminder, Form 1099-MISC must be issued to individuals and other unincorporated entities to which you paid $600 or more for services in the calendar year. Included in the list of required recipients are attorneys and medical care providers, whether incorporated or not. Likewise, Forms 1099-INT and 1099-DIV must be issued to recipients of interest and dividend income, respectively.
Form 1099 should be received by the payee no later than January 31, 2012, and transmitted to the IRS with Form 1096 no later than February 29, 2012.
If you have any questions or need assistance in preparing any necessary 1099’s, please don't hesitate to contact us.
