Discussion:1099 Cut-off date
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Discussion Forum Index --> Accounting Questions --> 1099 Cut-off date
Inagpurwala (talk|edits) said: | 10 January 2007 |
| I would like to settle a disagreement with coworker at my place of employment.
My understanding is that 1099 (to vendors/suplliers) should be issued based on Checks' issued date. Coworker insists it is based on expense posting date. Here are some facts: Company is on accrual basis (LLC) Year-end: Sept 30th Expenses posting: Generaly we post expenses to December up till January 20th, but checks will be issued in January. Please give your opinion on this. Thanks. IshaqInagpurwala 14:07, 10 January 2007 (CST) | |
| 10 January 2007 | |
| This is much like p/r. Accrued p/r is not w-2 wages in 2006, but when the p/r is paid, then it is included on the w-2...essentially this is the same. | |
| January 11, 2007 | |
| Amounts reported on 1099s are on a cash basis, not accrual. | |
| 20 January 2007 | |
| 2006 Payments to qualified 1099 vendors is what you report not what is expensed for the year. Per 2006 IRS Instructions:
Trade or business reporting only. Report on Form information 1099-MISC only when payments are made in the course of your trade or business. | |
| 22 January 2007 | |
| 1099 is cash basis. Report what is was actually paid in 2006. For your records, make an adj to show the accrual. | |
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