Changes to Form 1099 Requirements Print

Previously, the law dictated that taxpayers must submit Form 1099 to service providers that were paid over $600 in the tax year. The form was not required to be submitted for service providers that operated as a corporation. Following the Patient Protection and Accountability Act of 2010, the requirements have changed. Beginning January 1, 2011, taxpayers must submit Form 1099 to every service provider that was paid over $600, regardless of their status as a corporation. The new requirements will affect the 1099s for the January 31, 2012 deadline. In other words, the 1099s due this year on January 31, 2011 will follow the old rule and will not be sent for service providers operating as a corporation. The 1099’s for next year, however, will follow the new rule. In order to better prepare for the new requirements, please keep track of all service providers that you pay over $600 throughout this year. Remember to collect the following information by having each provider fill out a form W-9:

·         Business/Individual’s Name and Address

·         Business/Individual’s status (ex: corporation, LLC, etc.)

·         Social Security Number (for sole proprietorships and individuals)

·         Tax ID Number (for business entities)