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Lev
Lev, Tax Advisor
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Experience:  Taxes, Immigration, Labor Relations
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For my Florida LLC when must i have sent 1099MISC to contractor?

Customer Question

For my Florida LLC when must i have sent 1099MISC to contractor? whats is the impact to my LLC?
Submitted: 1 year ago.
Category: Tax
Expert:  Megan C replied 1 year ago.
Thanks for asking your question! I'm sorry to hear about your tax issue and I'm going to try my best to help you understand or resolve it.

Thank you for your question, and thanks for using JustAnswer.com. Sending a 1099-MISC is required when you pay more than $600 per year to any one vendor. This makes it so that income earned by the vendors is reported to the IRS so that they are certain that they receive taxes for it.

This does not impact your business in terms of increasing your tax, but it does provide documentation for deductions taken. If you do not file 1099 forms when required, The IRS states the following:

If you fail to file a correct information return by the due date and you cannot show reasonable cause, you may be subject to a penalty. The penalty applies if you fail to file timely, you fail to include all information required to be shown on a return, or you include incorrect information on a return. The penalty also applies if you file on paper when you were required to file electronically, you report an incorrect TIN or fail to report a TIN, or you fail to file paper forms that are machine readable.

The amount of the penalty is based on when you file the correct information return. The penalty is:

  • $30 per information return if you correctly file within 30 days (by March 30 if the due date is February 28); maximum penalty $250,000 per year ($75,000 for small businesses, defined below).

  • $60 per information return if you correctly file more than 30 days after the due date but by August 1; maximum penalty $500,000 per year ($200,000 for small businesses).

  • $100 per information return if you file after August 1 or you do not file required information returns; maximum penalty $1,500,000 per year ($500,000 for small businesses).

So, you must file 1099 forms whenever you pay someone more than $600 in a year.

Please let me know if you need anything additional. Thanks again for using JustAnswer.com and have a great day.

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You should be aware that your question, as with most tax questions, can never really be answered completely...addressing all the permutations; that is because of the many assumptions that have to be made I have done my best to determine what I think you are asking and answering it in the most direct and understandable manner possible. If, however, after reviewing the questions, you have any uncertainties or further questions, please do not hesitate to ask.

Customer: replied 1 year ago.

too technical. I own a Florida LLC. I had one contractor resident of California. we performed work in NJ. I am considering using TurboTax. what might you suggest about the next things i need to do.

Expert:  Megan C replied 1 year ago.
I'm sorry, I don't know about the software aspect of your question, so I am going to opt out so another professional can assist.
Customer: replied 1 year ago.


disregard the software .... provide an answer?

Expert:  Lev replied 1 year ago.
Hi and welcome to Just Answer!
For due date - see instructions - last page - http://www.irs.gov/pub/irs-prior/f1099msc--2012.pdf

File Copy A of this form with the IRS by February 28, 2013. If you file electronically, the due date is April 1, 2013.

So - for filing by mail - the due date is today.
For e- filing - we have one more month.

Form 1099MISC is required if you paid $600 or more.

The due date to provide the form 1099MISC to a payee is January 31.

 

Let me know if you need any help.

Expert:  Lev replied 1 year ago.
You know - that you need to file 1099 and 1096?
1096 - is a summary for all 1099.
Here is form 1096 - http://www.irs.gov/pub/irs-prior/f1096--2012.pdf

Here are some providers if you decide to file electronically
http://www.efileforbusiness.com/Default.aspx
http://www.1099online.com/
http://www.efilemyforms.com/

Let me know if you need any help.
Customer: replied 1 year ago.


paid california contractor for work done in NJ, $8600. what specific forms only?

Expert:  Lev replied 1 year ago.
Form 1099MISC - to the IRS and to the contractor.
Form 1096 - to the IRS.
If your LLC has no presence in CA or NJ - no state reporting required
Customer: replied 1 year ago.


no business presence in CA. for my FL LLC, I filed for a NJ business registration certificate, that was issued 4/17/12. but i did not register for tax or employer purposes. o boy.

Expert:  Lev replied 1 year ago.
If you registered in NJ - theer are additional state reporting requirements for payments made to contractors - see here - http://www.state.nj.us/treasury/taxation/pdf/other_forms/git-er/njw3unc.pdf

Non New Jersey Employers If you are not a New Jersey employer, Schedule NJ-W-3-UNC is used to report all withholding payments made during the year with Form NJ-550, Monthly Return of Withholding from Unregistered Unincorporated Contractors.
New Jersey Employers If you are a New Jersey employer, Schedule NJ-W-3-UNC is only used to report withholding payments that were made on behalf of Unregistered Unincorporated Contractors with NJ-500 and/or NJ927/927W during the year and attach schedule NJ-W-3-UNC to your NJ-W-3, Annual Reconciliation of Gross Income Tax Withheld.
Attach to schedule NJ-W-3-UNC, copies of the corresponding recipient income statements (Form 1099-MISC) reporting payments made to Unregistered Unincorporated Contractors, reporting the New Jersey Gross income Tax Withheld in Box 16, State Tax Withheld. A totaled list of Amounts Withheld must be included with the Schedule NJ-W-3-UNC and the associated 1099 MISC. These must be mailed together no later than February 28 or within 30 days after the close of the month in which your business has ceased.
Mail the completed reconciliation page to: XXXXX XX New Jersey - GIT, PO Box 629, Trenton, NJ XXXXX-XXXX.
Customer: replied 1 year ago.


can you clarify? My FL LLC had no employees in FL or NJ. I only had 1 contractor who came to NJ for CA to do some work and paid him 8600 out of total 12,000.

Expert:  Lev replied 1 year ago.
That is correct - if you are register in NJ - and you hire a contractor to perform work in NJ - this state requires separate reporting in additional to federal reporting.

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