Cash Payment, Should you file 1099 MISC

If, during the course of your trade or business, you made payments in 2019 totaling $600 or more to any independent contractor or other non-employee, you are required to report those payments on Form 1099-MISC.

You DO need to issue a 1099-MISC for:

  • Payments for services or rent (commissions, professional fees, maintenance, etc.)
  • Payments to non-corporate vendors, including LLCs, LLPs, partnerships and individuals
  • Payments made by cash or check
  • All payments of $600 or more to attorneys, even corporations

You do NOT need to issue a 1099-MISC for:

  • Payments for merchandise, utilities, freight, insurance.
  • Payments to a corporation, except attorneys
  • Payments made by credit card
  • Payments that total less than $600 for 2019

We recommend that you have your vendors complete IRS Form W-9. If you would like us to prepare and e-file your 1099s, please send us the required information as soon after the year-end as possible, preferably by January 11, 2020.

The following is a summary of the government deadlines for filing 1099-MISC:

  • January 31, 2020: copies must be sent to Recipients
  • January 31, 2020: Forms with Non-employee compensation payments reported in box 7 must be filed with the IRS
  • February 28, 2020: Forms with any payments payment other than non-employee compensation must be filed with the IRS (paper-filed)
  • March 31, 2020: Forms with any payments payment other than non-employee compensation must be filed with the IRS (e-filed)

For further information regarding other less common payments, please refer to IRS 2019 Instructions for Form 1099-MISC , or contact us at 401-831-0200.