With the April 15 annual federal tax filing deadline just around the corner, the owner-operator tax specialists with ATBS, Overdrive‘s principal partner in the Partners in Business manual, have embarked on a new series as of the end of February, pledging to dig into a new tax-related topic every Tuesday until tax day.
The first two are already available, dealing with the issues of tracking down (and in some casing issuing) 1099 forms and what exactly to look for when selecting a tax preparer.
An interesting tidbit about 1099s. If you as a business owner pay an individual more than $600 in any given year for help running the business, you’ll need to file a 1099 for them yourself. As ATBS notes:
If you paid someone more than $600 in 2016, then you will need to file a 1099 for that person, and send a copy of this to the IRS by February 28th (or March 31st if you file electronically). A good bookkeeping practice to adhere to is to file a signed and completed W-9 for each contractor you hire. This provides the information you need for filing Form 1099 with your contractor and the IRS.