The most common small business tax screw-up

Posted on Posted in Small Business

Perhaps the most common small business screw-up that generates tax penalties?

IRS requires that when you make business expense payments to individuals (as opposed to corporations), you must additionally send them a form 1099-MISC unless an exception applies.

My simplified chart is intended to make it easy to identify the exceptions. In reality, it is more complicated so get professional advice or look it up at irs.gov.

1099-MISC worksheet

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