INFORMATIONAL TAX FILING REQUIREMENTS FOR 2008 January 2009

It's that time of the year again—when the government gathers information on wages and other payments your business made during the year. You are undoubtedly aware of the W-2, Wage and Tax Statement, which must be provided to each of your employees and to Social Security Administration. These forms are due to employees by January 31 & to Social Security Administration by February 28. But your information-reporting obligations don't end there. Here's a rundown of other common payments that may require an information return.

Payments of $600 or more to contractors or other services providers (other than corporations) must be reported to the recipient and to the IRS on Form 1099-MISC, Miscellaneous Income. The form is due to the recipient by January 31st and to the IRS by February 28th.

Nanny Employment I can provide a Nanny spreadsheet and my Nanny memo if you have questions. The Forms are due to the Nanny by 1/31 and to the Government by 2/28.

Payments to attorneys for business-related services must be reported to the attorney and to the IRS. These payments must be reported on Form 1099-MISC regardless of the amount and regardless of whether the attorney is incorporated.

Employment Security This tax, also known as SUTA, is the state unemployment tax. It is filed and paid quarterly. For 2009, a new ruling requires every Corporate Officer to fill out an exemption request by January 15th, or else they will be covered.

Rents totaling more than $600 paid to an individual landlord, partnership, or estate (but not rents paid to a corporation) must be reported on Form 1099-MISC. (However, rents paid to a real estate agent are generally not required to be reported.)

Other less common payments made by your business may also trigger an information-reporting requirement. For example, an information return may be required if you:

• Traded your business services for the services of another business
• Paid wages to the estate or beneficiary of a deceased employee
• Made cash payments to purchase fish for resale
• Cancelled a borrower's debt in connection with a business of lending money
• Paid out winnings in connection with a gambling or race track business

Bear in mind that the penalties for failure to comply with these information-reporting requirements can be stiff. For example, you can be hit with a penalty as high as $50 for each return that is filed incorrectly or is not filed on time. If you need help sorting out your information-reporting responsibilities or assistance in preparing the required returns, please feel free to call.

With best regards,

Brian Berlage

Past newsletters :

January 2009
February 2009
March 2009
April 2009
May 2009
June 2009
July 2009
August 2009

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