It’s 1099 Time! Why is this important for your school?
Don’t worry – CSMC prepares these forms on behalf of your school, and sends them out for you. However, we do need some information from you, such as payee addresses and/or payee taxpayer identification numbers (EIN), to keep your school in compliance.
Here are some steps to help guide you on this important year-end process.
1. It’s better to give than receive.
Businesses/schools must issue these forms to any payee (other than a corporation), who receives $600 or more during the year, for services rendered. For tangible products purchased, 1099’s are not necessary.
2. Timing is everything.
Businesses must send out 1099 forms on or before January 31st of each year, for the prior calendar year. Companies who issue 1099’s late, receive penalties. Therefore, CSMC is actively involved in the process of getting the information we need in order to finalize these forms by the given deadline.
3. Beware of changed addresses.
Although the reported information is identified by an EIN, it’s important for CSMC to have the most recent address of your 1099 recipients. We will be sending a preliminary report to you – be sure to double check the addresses and let us know if any need to be updated!
4. The IRS gets them too.
1099’s must be sent to both taxpayers and the IRS by January 31st. Therefore, reviewing the preliminary reports for accuracy of all information on the 1099, is extremely important.
5. Report errors immediately.
If corrections are reported to you, whether it be before or after January 31st, let us know as soon as possible so that we can update the form and amend the 1099.
6. Report every 1099.
The key to Form 1099 is the IRS’ computerized matching. Every Form 1099 includes the payer’s employer identification number and the payee’s EIN. The IRS matches nearly every Form 1099 with the payee’s tax return.