Are Form 8655 Miscellaneous 2024

Hi guys, it's Mrs. Balance Sheet, also known as Maya. I'm coming to you today with a video on the topic of the form 1099 miscellaneous. This tax season, as an accountant, I often receive calls from clients with questions about this form. So, I decided to create a video to help new entrepreneurs and small business owners out there. A 1099 miscellaneous is a form that business owners are required to file at the end of the year as part of their accounting. The requirement is to issue this form if you pay a non-employee over $600. This form is used by the recipient to include the income on their business or individual tax return. Non-employees include contractors, subcontractors, and vendors. However, there are exceptions such as escorts and C Corps. To know if you need to issue a 1099 miscellaneous, it's best to ask your vendors. I advise all my clients to have their vendors fill out a W9 form at the beginning of the year. This way, when you are doing your year-end accounting, you already have the necessary information for issuing the 1099s. The form itself includes the type of entity the vendor has, and if they are classified as a C Corp or S Corp, you do not need to issue them a 1099 even if you paid them over $600. I always remind my clients of the potential fines for not issuing 1099s. The fines range from $30 to $100 per form, and if the IRS finds you grossly negligent, the minimum fine is $250 with no maximum. So, it's important to do your due diligence. If you have a small business and you're hiring contractors, it's highly recommended to have an accountant. If not, review each person you're paying and determine if they should be included...