November 23, 2020

1099 Misc Instructions 2020

1099 Misc Instructions 2020 (chimes playing) – [Toby Mathis] How do you reportand issue a 1099 MISC? Which is a 1099 miscellaneous. And then is it too late for 2018? Jeff Webb, you love these things. – How do you report, wellyou're just reporting payments. Made to othersthat are not corporations. – Non-corporations over 600 bucks..

– Over 600 bucks for services. Not for materials purchased. So you would actuallyreport that on a form. 1099 with that vendor orwhoever's name on there. – Now you're a little late for 2018. It. Was actually due January31st was the first due date. – Yeah, the one's with boxed out, the non-employee compensation we call it, your independent contractors.. Those had to be filed by January 31st. The rest of the 1099 MISChas to be filed, by yesterday. – Oh, so we can go back in time a day. What happens if you, file late? – If you file late, it's usually a penalty of $50 per 1099. – What if you just don't file? -. Can they catch ya? – Yeah. – Oh, that's a much bigger penalty of $50. (laughing) – Don't file. No, I'm not going to say don't file. I'm not going to, say, “Don't file.” – And here's, the thing,I mean if it's a 1099 between you and your kidsor somebody you know, it's maybe a little moreimportant when you need to report.

That income to a third party.- Yeah. – Who has to have that information. – Alright, so I'm, going to give you guys my 1099 story. We were one of 50,000 companies that were when they did this mid-sizecompany audits for their. what they. Did is they wentafter everybody looking at their payrolls andindependent contractors..

They wanted to make sure that they weren't classifying employees andindependent contractors. You're going to see this is a pattern with the service, the IRS. So they did 50,000 companies, we were one, of 50,000 companies,, I wantto say was about 10 years ago. But they go through all of your payrolls, they go through all of your contractors. You have to have eithera.

W-4 for your employer or a W-9 for your contractors.- Right. – And we had a couple thatwe didn't have W-9's on. That. Were corporations butthey had since expired. So, this is kind of the rub. You're, looking at and go, waita second, these companies, one was a landscaping company,another one was a magician. Ended up being number twoon America's.

Got Talent. We were watching him andwe were cursing his name because he cost us 700 bucks. Here's how., If you don't 1099 oryou don't have your W-9, you're not incompliant, compliance. Then you have to pay a withholding. Even though they probably paid the tax, if doesn't matter if they. Paid. The tax. The IRS can come and say,you have to pay your 28%. So we ended up paying $700. It was like, we looked at it and said, it's cheaper just to.

Pay itthan to try to track these guys down and get all theirstuff because they weren't answering phone. Callsand just kind of annoyed. – Yeah this is one reason whywe often say that before you pay any of your vendors,make sure you have a W-9, because if you pay me andthen ask me for tax reporting information later, there's a. Good chance I'm not going to giveyou that information. -, So, you better do it. – Better do it beforeyou give them the money. – Yup, that's what we do usually. I mean, none, and all thenI'll send you a check. – Somebody's asking aboutMichael, Abb, and Eddie. You guys are horrible. How do you get away withnot filing for 10 years?. Did he not file for 10 years? – I'm not aware of, that. – All I know if that you'reassuming you got away with it because the. Last time Ichecked he's under indictment. (man laughing) He's being charged with tax fraud and with all sorts of heinous. He messed with Nike. Don't mess with, gorillas guys. Here's a hint. Don't poke the bear. Nike is a big, huge companyand they said, oh, (name). Within a week, he was being arrested.. Which is bazaar. 'Cause you can't get thefeds to do anything in a week.

But all of a sudden, youjust woke up with a bear and. The bear's going totake a bite out of ya. – I was shocked. He seemed, always seemedlike such a nice guy. – Creepy foreign wear. I know that's. What youguys are all thinking. Yeah I know he wasreally doing a nice thing by helping somebody blackmail. I'm not getting into it today. Lawyers bug me. Alright. (man chuckling) He, messed with Trump with that story. You guys are horrible. – We uncorked something here. You guys are all being. Honorary. (piano music) .

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