Did your business pay vendors or subcontractors $600 or more (total) in 2022?

Consider this your “early” warning.

You’re going to need to issue 1099 forms (typically 1099-NEC) to them and file these forms with the IRS by 1/31/2023.

Sent your neighbor a Zelle because he helped out in the office when you were crazy busy?

Yes, him.

Paid a repairman to (finally) fix the office’s roof?

Him, too.

Basically, if you paid any LLC or individual (but not your employees, who get paid via W-2s), although C or S-Corporations are exempt.

How do you know which one of these entities they are?

Well, you should be collecting form W-9s from everyone you pay, BEFORE you pay them.

If you haven’t already collected these W-9 forms, now would be a wise time to do so, rather than waiting for the last-minute.

And, yes, the IRS penalties for not filing 1099s are pretty steep.

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