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Wealth Health Managing Director Rich Coppa on the deadline for small businesses to file their 1099 with the IRS.
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Heads up small business owners you've got just 22 days to file your paperwork for the IRS or you face a fifty -- 100000 dollar fine.
This blows me away okay what's the deadline for filing your 1099.
Recovery your assets with important tips navigating the process joining me now rich cop -- managing director for wealth -- this.
He hopes this is you even miss this I my -- very few more -- I got two more days I got plenty of time together getting together we reminded you how important and I appreciate that actually.
Yes as as a result of the small business jobs act the penalties have been increased tremendously so it's really important that business owners -- get these 1090 -- out in a timely manner which as you said January 31 this Thursday.
To okay.
What's the IRS looking for.
Well the IRS is trying to match income for un incorporated business is so unlike a W two where everything -- filed with the IRS and there's a reporting of that.
Front incorporated businesses self employed sole proprietors members of policies partnerships.
Those are the types of service providers that need to receive 1090 -- to recording come so the recipient onerous is on the recipient of those services.
To send out those 1090 -- and then.
They filed -- -- here's a look at that and here's full screen for -- -- -- any individual you paid 600 bucks or more for services -- can be a lot of people if you have a small absolutely.
Anybody other than realtors to which you paid rents.
And liars they're everywhere right he just can't get away from that when we paid 600 bucks in legal fees any.
-- from a lawyer is only 600 but as far as I know that's like two hours of work if fact that.
An interesting thing about the lawyers is usually it's an un incorporated business.
But even if the law firm is a corporation you still have to file that 1099 for lawyers.
You're talking about penalties before but look at this this is penalties for corrections.
The American mistake he's trying to set it right what happen -- 7000 dollar fine and thirty days 200000.
After it after thirty days.
Right these are the maximum fine so big about this is for companies who have hundreds or maybe even.
You know thousands of different vendors out there and these are the maximum penalties for small businesses defined as you know those businesses making five million dollars in gross receipts or less over the last three years.
So the fines or extravagant.
But.
You know there are ways to correct it and then you know work with the IRS the most important thing is getting information accurately.
And so what you wow should do is file or request -- W nine form.
And that W nine form from that vendor.
Gives you the accurate legal name address -- stared -- everything that he should numbers you've got to make sure it's perfect could what's happening is you're in you're gonna see a lot of businesses receive notices from the -- -- for 1090 nines that have misinformation on them.
Think about how many companies you know of just by the trade name -- but it's not the legal name.
At Natalie already and that's gonna matter now.
Well it is gonna matter because it's it's again it's -- matching and so the owners is on that recipient of the services so.
What I would say it's is get the W nine prior to making your first payment to that -- This way you have all the information the end of the year comes in January 31 comes reorganize its okay.
Who do why not send the 10992.
Right so you don't send it to corporations with the exception of what I mentioned earlier lawyers.
All lawyers get them.
For merchandise if you receive merchandise then.
You're not required to send -- -- again this is for services vendors that are providing a service to you.
Real estate agents as you mentioned they don't get them.
Employees employees receive W twos and they're at 600 back to its 600 bucks tipping point and the other thing is if it's a trade -- business that's why you're sending it.
If it's personal services and other words.
You had someone paint your office.
They get a -- that same person came and painted your living room they don't get a 1099 for that perhaps another -- trader.
Call -- got you got to hire professionals like rich at the end of the day the devil's in the details and have always apparently -- IRS is coming for you know -- from.
Rich thanks thank you good to see you it to.
