I do tax prep and planning as well as represent taxpayers in resolving tax matters with the IRS and states. I am an Enrolled Agent and hold the Certified Tax Representation Consultant Certificate offered by the University of Connecticut School of Business.
Alright, let's cut to the chase, why is January 17th important? Glad you asked. First, for those that are independent contractors (i.e. MANY real estate agents) January 17th is the final day to send in your last estimated payment. Don't worry if you missed, just do it ASAP, like tomorrow.
Second, since we are a little bit past the halfway point of the month, you have about two weeks before 1099-NECs are due for those that you paid over $600 for services rendered that aren't incorporated. That plumber, electrician, or other handyman that you pay to come in and take care of minor repairs before you list the house. Yeah, him (or her, hey it's 2023). If those repairs ran you over $600 for 2022, you need to send out a 1099-NEC. Also get a W-9 on file to prove that contractor is legally allowed to work here in the US.
In light of the proposed new beefed-up IRS, it's time to start focusing on details. The two I mentioned, estimated taxes and 1099-NECs, are simple yet important parts of staying in tax compliance, and avoiding needless penalties and fees.
Halas Consulting
Christian Halas
Ph: 412-685-4285
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