It is time once again to gather information for the preparation of Forms 1099. The Form 1099 is issued to individuals, non-incorporated entities, or attorneys (including corporations) who receive payment from your trade or business other than employee compensation.
Should you wish Seibel & Katz CPAs to prepare the forms for you, please complete the below 1099 Information Sheet and return it to our office no later than January 16, 2026.
You may also upload the completed 1099 sheet to our secure portal:
https://new.protectedxchange.com/seibelkatzcpa/login
Per the IRS, anyone collectively processing more than 10 Forms 1099, must send the red copies electronically through the IRS website. The recipient copies will still need to be mailed by you by January 31, 2026. We will send the recipient copies to you, plus a client copy for your files.
The 1099 information sheet is provided to help you summarize the necessary data to prepare these forms. With these guidelines in place, it is extremely important that all the information sent to us is both readable and correct, since we will sending the 1099s directly to the IRS. If a correction is needed, there may be an additional cost.
Before you hire an independent contractor, you must have them complete Form W-9. This will ensure that you have all the information required to prepare the 1099. A copy of Form W-9 can be found below:
When listing payees, be sure that the proper identification number is used; social security number for individual payee and employer identification number for businesses. In addition, you are also required to include the telephone number and name of a person to contact if the 1099 recipients have questions about the statements they receive. Please indicate on the enclosed form who you would like to use as a contact and at what telephone number that person can be reached.
The payments to be reported include, but are not limited to, the following categories:
Annual payment of at least $10 for:
Annual payments of at least $600 for:
As in the past, payments to attorneys made during the course of your trade or business (including payments made to corporations) must be reported on Forms 1099.The limitations for these payments vary. Payments for attorneys’ fees are required to be reported if they are at least $600. However, if you have made a payment in connection with legal services and the fee portion cannot be determined, the total amount paid (gross proceeds) must be reported regardless of the amount. Please clearly designate payments to attorneys as “fees” or “gross proceeds” when completing the enclosed summary sheet.
Payments made to reimburse an employee for actual expenses, such as travel and meals, are not included. Additionally, proprietor draws are not included.
If the taxpayer does not comply with the filing requirement for 1099’s, the penalties can be severe.
If you have any questions regarding any of the above items, please contact our Mariemont Office at (513) 271-7835.
