Are You Sending The Right 1099s?
As January comes to an end, businesses across the country are preparing 1099s. Do you send them to the right people? According to Paul Neiffer, principal and CPA with accounting firm CliftonLarsonAllen, most farmers aren’t 100% sure who they should be sending 1099s to, and why they might be receiving them.
Farmers should file 1099s for:
- All landlords who have been paid $600 or more. (Seriously.)
- Machine rentals in excess of $600.
- Services in excess of $600 provided by anyone who is not your employee. This includes your accountant, attorney, vet, custom farming hire, and even your mechanic.
Farmers could receive 1099s for:
- Custom farm work or grain hauling you performed for someone else.
- Rental payments you received in excess of $600.
- Crop insurance proceeds in excess of $600.
Exclusions: S and C corporations are exempt from 1099s.
Deadline: The deadline to file these with the IRS is January 31, 2019.