You will need to go to the IRS website to view the list of 120 transactions that must be reported, along with the forms that must be used. Please note, this is not an exhaustive list, so even if a certain transaction is not included, it doesn’t mean you can avoid reporting it. When it comes to finding further information on specific transactions, you will need to see the instructions on the requisite forms (1099s).

However, you are typically required to report payments in excess of $600 to trusts, partnerships, LLCs, etc., on a 1099 form. These payments commonly include:

  • Rent and royalties.
  • Punitive damages from litigation.
  • Non-employee compensation bonuses, commissions, awards, and other remuneration.
  • Proceeds from the sale of assets, such as stocks.

For further questions about Phoenix new business accounting, please contact Singer Tax & Accounting, PC today at (602) 482-8006.