IRS Instructions from NCRSP dated Jan 2023
From: <info@ncrsp.org>
Date: Fri, Jan 27, 2023 at 7:40 PM
Subject: IRS-1099 CALENDAR YEAR 2022 TAX FILING
Greetings,
We are in now in the 2022 calendar year IRS tax filing season. We have been made aware of a few tax concerns by our auditors; therefore, we would like to share the information to the local and region leaders, filings have to be done by January 31st; (and they can be done online per the instructions).
Attached are instructions and forms to have filled out for any member who has received over $601 for monies advanced or reimbursed within the calendar year for services or goods, that have not turned in proper documentation and/or receipts to go along with expense paperwork. A 1099-NEC or Nonemployee Compensation form is for the treasurer to turn into the IRS, the W-9 is to be given to the member who has received the funds.
The following is information from the official IRS website:
Specific Instructions for Form 1099-NEC
File Form 1099-NEC, Nonemployee Compensation, for each person in the course of your business to whom you have paid the following during the year.
At least $600 in:
Services performed by someone who is not your employee (including parts and materials) (box 1); or
Payments to an attorney (box 1). (See Payments to attorneys, later.)
File Form 1099-NEC or Form 1099-MISC to report sales totaling $5,000 or more of consumer products to a person on a buy-sell, a deposit-commission, or other commission basis for resale.
.If you use Form 1099-NEC to report sales totaling $5,000 or more, then you are required to file Form 1099-NEC with the IRS by January 31..
You must also file Form 1099-NEC for each person from whom you have withheld any federal income tax (report in box 4) under the backup withholding rules regardless of the amount of the payment.
.Be sure to report each payment in the proper box because the IRS uses this information to determine whether the recipient has properly reported the payment..
Trade or business reporting only.
Report on Form 1099-NEC only when payments are made in the course of your trade or business. Personal payments are not reportable. You are engaged in a trade or business if you operate for gain or profit. However, nonprofit organizations are considered to be engaged in a trade or business and are subject to these reporting requirements. Other organizations subject to these reporting requirements include trusts of qualified pension or profit-sharing plans of employers, certain organizations exempt from tax under section 501(c) or 501(d), farmers' cooperatives that are exempt from tax under section 521, and widely held fixed investment trusts. Payments by federal, state, or local government agencies are also reportable.
Sincerely,
NCRSP
3700 Glenwood Avenue; Suite 510
Raleigh NC 27612
(800) 662-7924 ext. 243