Year-End 1099 Compliance
As year-end approaches, there are several items you should be considering related to 1099 preparation.
Here’s what we need from you:
WHEN TO SUBMIT INFORMATION
Please submit your 1099 information to your My Eide Bailly portal by Tuesday, January 10, 2023. Please include:
- Download and complete the 1099 template below.
Download your 1099 Template - For a more detailed spreadsheet (specific to a form), please contact your Eide Bailly professional (or see the drop-downs below).
- If you are using QuickBooks Online and appropriately tracking 1099s in that system, please invite the firm as an accountant user of that file. Please see the attached worksheet to learn how to invite us as an accountant user to your QuickBooks Online file.
- If you are using QuickBooks Desktop and appropriately tracking 1099s in that system, please upload an accountant’s copy to your My Eide Bailly portal and let your Eide Bailly professional know the password to your file.
Upon completion, all forms will be mailed directly to the recipients and all government copies will be electronically filed with the appropriate authorities. We will upload the copies for your records to your My Eide Bailly portal.
Please note, all 1099 forms must be furnished to recipients on or before January 31, 2023 to avoid penalties. We cannot guarantee timely filing for information received by us after January 25, 2023.
HOW TO SUBMIT INFORMATION
- Please upload your information to your My Eide Bailly portal no later than Tuesday January 10, 2023.
- Please check all recipient names, addresses, and social security numbers/taxpayer identification numbers for accuracy prior to returning information to us.
- If a recipient is using a social security number, make sure you have included the first and last name, not a business name.
- All recipient copies of Form 1099 information returns MUST include a contact name and telephone number in the event recipients have questions. Please include a contact name and telephone number on the information you return to us.
Below are some basic instructions for review to help prepare you for filing your 1099 forms for 2022.
Common types of payments to be reported (this list and instructions are not all inclusive):
Yes, if you made payments during the ordinary course of your trade or business, it must be reported. These payments include but are not limited to:
- Payments of at least $600 in services (including parts and materials). Examples of services include:
Machine Hire Casual Labor Breeding Fees Professional Services Repair Work Spraying Veterinary Fees - Payments of at least $600 in attorney fees
- Any amount of payment, if withholding on that payment is present
Do not include payments you made:
- For merchandise such as seed, chemicals, parts bought for repair work
- For wages paid to employees
- To corporations (see instructions for some exceptions)
Here is the 1099-NEC specific template form.
Yes, if you made payments during the ordinary course of your trade or business, it must be reported. These payments include but are not limited to:
- Payments of at least $600 in rents, prizes and awards, other income, medical and health care payments, and crop insurance proceeds.
- Payments of at least $10 in royalties.
- Payments of at least $600 in gross proceeds paid to attorneys in connection with a settlement agreement.
- Any amount of payment, if withholding on that payment is present
Do not include payments you made:
- For merchandise such as seed, chemicals, parts bought for repair work
- For telegrams, telephone, freight, storage, and similar items.
- For wages paid to employees
- To corporations (see instructions for some exceptions)
Here is the 1099-MISC specific template form.
Yes, if you made payments for the following:
- Interest payments of $10 or more if you are a savings and loan association, cooperative bank, homestead association, credit union, or similar organization.
- Interest payments of $600 or more paid in the course of your trade or business not meeting the above criteria.
Here is the 1099-INT specific template form.
Yes, if you made payments for the following:
- Distributions of $10 or more such as dividends, capital gains, or nontaxable distributions paid on stock.
- Liquidation distribution payments of $600 or more.
Here is the 1099-DIV specific template form.