Are you aware of your
obligations regarding
vendor payment
reporting?
In general, Federal and state regulations require businesses to collect
information from vendors, determine if withholding requirements apply,
withhold pay amounts and report total activity to governmental agencies.
In California, intent to do more that $600 with a qualified reporting
company or doing such business requires reporting to the state within 20
days of that intent or payment.
Failure to comply with
these rules can result in penalties, fines, interest assessments and even a
disallowance of that paid business expense. This disallowance of expenses
can then trigger additional tax assessment, interest, penalties, etc. In
effect this compounds the negative financial impact of the matter.
The governmental agencies are stepping up efforts in this area to increase
compliance and tax revenues.
Protect your business by becoming aware of these obligations and
implementing correct compliance techniques and process. For assistance with
1099 and related compliance please contact us…
Garry A. Jones & Associates
805-778-1858
SPECIAL OFFER
Mention this article and receive 10% off 1099 preparation.
Offer expires 12/31/2009
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