Form 1099 – Payment to U.S Suppliers

What you should know about Form 1099 – Payments to U.S Suppliers

  • A U.S individual or company that paid a single supplier or an individual who fully controls an LLC (i.e. neither a company nor an LLC with two or more partners), who is a U.S citizen or resident more than $600 in ordinary payments or $10 in interest payments, is required to file Form 1099 for each such supplier by January 31st.
  • This due date cannot be extended.
  • In practice, we recommend including any payment to any LLC that exceeds $600, since it is often unknown whether an LLC is fully owned or held by partners.
  • Throughout the year, one must send the suppliers a W9 Form for them to fill out, sign and send back to you.
  • A W9 Form indicates that the filer is a U.S citizen or resident, his tax classification (Individual, S-Corp, C-Corp, LLC etc.), his address and taxpayer identification number.
  • If this date falls on a Federal U.S holiday or the weekend, this date is postponed to the following day.

What’s the next step?

  • If you are required to file Form 1099, we recommend that you contact our firm towards December 15th, before the tax year ends, to enable us to prepare ourselves well for the current tax year.
  • Our firm works according to the order it receives materials, and so we recommend contacting us earlier rather than later.
  • Contact us today to receive a letter of engagement and a list of the materials we require to file your taxes.

Example of Form 1099

Form 1099

Example of W9 Form

W9 Form

If you have any further questions, please feel free to contact us 

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