Don't Forget: 1099 Deadline is Approaching
If you own a business or rental property, the Franchise Tax Board (the state income tax folks) will not allow you to claim a deduction for any amounts you paid to service providers who should have received a 1099 unless they actually receive one. Of course, the IRS also mandates 1099s but they only provide for penalties of $100 for each 1099 which should have been filed but was not.
The tax agencies are getting serious about 1099s and the rules relating to them. If you wish to keep your taxes as low as possible and avoid paying extensive penalties, it's imperative you get all required 1099s filed right away. Any unincorporated service providers that were paid $600 or more in 2013 must have their 1099(s) postmarked no later than January 31st. The exception to this are legal fees as even if your attorney is incorporated, a 1099 will still need to be issued.
Not sure what to do? Let our team of qualified and friendly tax professionals help prepare them for you. Please contact us today to set up an appointment!