General tax question: 1099, 1042 for SEO services?

5 replies
I'm just wondering if we are supposed to issue 1099's and 1042's (foreign) for SEO services. If so, do any of you ever have problems getting the company to comply in filling out the W9 or W8?

I won't be meeting with my tax lady for a couple more months and I would love some feedback in the meantime.

Thank you.
#1042 #1099 #general #question #seo #services #tax
  • Profile picture of the author sbeard
    Hi

    Its been a couple of years since I've needed to issue 1099's but I seem to recall that you need to get those in the mail by Jan 31. It would be worth a call to your tax lady to double check that.
    Signature

    Steve Beard
    www.webvideoexpert.com
    See our Video and VoiceOver Demos.... Fast Service - Studio Quality - Street Prices
    Professional Branding Service- You Provide the Content - We Make It Look Great!
    Free download... Video Creation Short Course

    {{ DiscussionBoard.errors[5315883].message }}
  • Profile picture of the author coloradoseo
    I posted a similar topical post the other day. There is new requirements for the 2011 year versus 2010 tax year for record keeping and issuing of 1099s to individual contractors. This can especially be burdensome when you're dealing with global vendors such as for link building services with companies in India and Thailand etc.

    First step is to nail down exactly whom you're paying and need to keep records for, and their business address I would think, and then work on getting them to complete their side of the paperwork.

    Is there the same reporting requirements when you're paying offshore vendors as USA vendors?
    {{ DiscussionBoard.errors[5316062].message }}
  • Profile picture of the author kristinecpa
    From the IRS website...

    "You must file Form 1099-MISC, Miscellaneous Income, for each person to whom you have paid during the year:

    At least $10 in royalties (see Box 2 on page 4) or broker payments in lieu of dividends or tax-exempt interest (see Box 8 on page 7);

    At least $600 in rents, services (including parts and materials), prizes and awards, other income payments, medical and health care payments, crop insurance proceeds, cash payments for fish (or other aquatic life) you purchase from anyone engaged in the trade or business of catching fish, or, generally, the cash paid from a notional principal contract to an individual, partnership, or estate;

    Any fishing boat proceeds; or

    Gross proceeds of $600 or more paid to an attorney. See Payments to attorneys on page 2. "



    Bottom line... yes, you need to send a 1099 to someone who provides SEO services if you paid them $600 or more during the calendar year.

    Hope this helps...
    {{ DiscussionBoard.errors[5453034].message }}
  • Profile picture of the author Rob Howard
    Does this include overseas workers and outsourcers?
    {{ DiscussionBoard.errors[5453099].message }}
  • Profile picture of the author Rob Howard
    Did some digging and, much to my relief, I've found that if...

    They are NOT US Citizens who do NOT live in the Untied States (nonresident aliens) and perform work OUTSIDE the United States (not on US soil), then the IRS doesn't count that as wages. This means no withholding or additional forms for filling are needed.

    Of course, everyone should talk to a tax professional and not take advice on an internet forum.

    Rob
    {{ DiscussionBoard.errors[5453353].message }}

Trending Topics