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As the year comes to a close, property owners across Atlanta are preparing for tax season. One of the most important aspects of this process involves Form 1099 reporting. Whether you’re an independent landlord or work with Platinum Property Management, understanding what Atlanta owners should know about 1099s and year-end tax reporting time is essential for staying compliant with the Internal Revenue Service (IRS).
From Form 1099-MISC and Form 1099-NEC to filing requirements, backup withholding, and accurate reporting, there’s a lot to cover. This guide breaks down the essentials so you can avoid penalties, keep your IRS records clean, and ensure your federal income tax filings are correct for the 2025 tax year.
Key Takeaways
Property owners must issue Form 1099-NEC to independent contractors who earn $600 or more in a calendar year.
Form 1099-MISC is used for reporting rental income, royalties, and other nonemployee payments.
LLCs and S-Corps have unique filing requirements for 1099s—make sure you know your business entity classification.
Keeping accurate records and filing by the IRS due date helps avoid penalties and backup withholding.
Electronic filing is encouraged for faster, more secure information reporting to the IRS.
Understanding the Basics: Federal Income Tax and 1099 Forms
At its core, the federal income tax system relies on information reporting through various IRS forms. For property owners in Atlanta, this often means issuing Form 1099s to service providers and independent contractors.
If you hire self-employed workers like plumbers or landscapers for your rental properties, you must issue Form 1099-NEC for payments over $600. This helps the IRS track taxable income and ensure that all nonemployee compensation is properly reported on Form 1099.
Form 1099-MISC: Reporting Other Income
The Form 1099-MISC is used to report payments that don’t fit into traditional wage or salary categories. For Atlanta property owners, this may include:
Rental income received by property managers or agents.
Sickness insurance program payments.
Cash payments for fish (yes, even those!).
Tax-exempt interest or substitute payments in lieu of dividends.
If your gross proceeds paid to a person or business exceed $600, you’ll need to file the form by the IRS filing deadlines.
Form 1099-NEC: For Independent Contractors and Nonemployee Compensation
Introduced as a new form in 2020, the Form 1099-NEC specifically reports nonemployee compensation—payments to individuals or businesses that aren’t on your payroll.
For example, if you pay a contractor $1,000 to repair a roof on your Atlanta rental property, you must report payments using Form 1099-NEC. This includes gig workers, handymen, and service providers who are not part of your company staff.
Each Form 1099 requires the recipient’s Taxpayer Identification Number (TIN) or Employer Identification Number (EIN) to ensure accurate reporting in the IRS system.
1099 Filing Requirements for S-Corps and LLCs
When it comes to Form 1099 filing requirements, not all business entities are treated the same. Whether your Atlanta property is owned under an S-Corporation or a Limited Liability Company (LLC), knowing how the IRS classifies your entity can make all the difference in how you report payments and meet filing obligations. Understanding these distinctions helps you stay compliant and avoid costly mistakes during tax season.
S-Corps
S-Corporations generally do not receive Form 1099s for services they provide, with exceptions for attorneys and medical or healthcare payments. However, S-Corp property owners must still issue 1099s to others when required.
Limited Liability Companies (LLCs)
For Limited Liability Companies, the rules depend on how the entity is taxed.
Single-member LLCs: Treated as individual taxpayers, and payments should be reported on Form 1099.
Partnership or multi-member LLCs: Subject to information reporting like other business entities.
LLCs taxed as corporations: Typically exempt from receiving 1099s.
Knowing your business entity status helps determine whether or not you need to issue or receive 1099s.
Keeping Accurate Records and Avoiding Penalties
The IRS expects accurate records of all gross payments, taxable income, and reportable payments. Missing or incorrect information can result in penalties, sometimes up to the maximum penalty per form.
To stay compliant, Atlanta property owners should:
Maintain detailed information about every payment and service provider.
Verify Taxpayer Identification Numbers using IRS tools.
Keep copies of all IRS forms and tax returns for the calendar year.
Consult a tax advisor for specific instructions on tax preparation.
Remember, maintaining accurate reporting protects both you and your contractors from backup withholding and IRS inquiries.
Filing Form 1099: Deadlines and Methods
Each filing form has specific due dates depending on the type of income being reported:
Form 1099-NEC: Must be filed by January 31st (whether electronically or on paper).
Form 1099-MISC: Filed by February 28th for paper submissions, or March 31st for filing electronically.
You can submit 1099s to the IRS using electronic filing systems, which require a Transmitter Control Code (TCC). Many property owners find this to be a faster, more secure way to submit IRS forms while meeting filing deadlines.
Backup Withholding and Its Impact
If a contractor fails to provide a valid Taxpayer Identification Number, you may be required to withhold 24% of their payments as backup withholding and send it to the IRS.
Backup withholding ensures that the entire payment is properly reported, protecting the federal income tax system from underreporting. Property owners must clearly mark these amounts on the Form 1099 for the tax year.
Common Scenarios for Atlanta Property Owners
Paying an independent contractor to maintain a rental unit — issue Form 1099-NEC if the amount exceeds $600.
Receiving rental income through an extended care facility owned by an S-Corp — this must be reported on Form 1099-MISC.
Making cash payments to a nonprofit organization or tax-exempt organization — these may have separate reporting income requirements.
If you’re unsure about which specific form applies to your situation, the IRS website offers general instructions for certain information returns (2025) that outline other forms and filing requirements.
Must-Know Tips for Tax Statements and 1099s in Atlanta, GA
Double-check your filing form and ensure all gross income is correctly reported on Form 1099.
Track all gig workers and self-employed individuals you hire throughout the calendar year.
Submit your electronic filing early to avoid IRS delays.
Confirm that your employer identification number and recipient TIN match exactly.
Work with a tax advisor familiar with Atlanta’s local tax system for tailored advice.
By following these steps, Platinum Property Management clients and independent property owners can minimize tax liability, avoid incorrect information, and ensure compliance with IRS regulations.
FAQs About 1099s and Year-End Tax Reporting
1. Do I need to issue a 1099 for every contractor I hire?
If you pay $600 or more to any independent contractor during the year for performing services, you must issue Form 1099-NEC, unless the contractor is a C-Corp or S-Corp (with a few exceptions).
2. What happens if I miss the 1099 filing deadline?
Late filing can result in IRS penalties that increase the longer you delay. Submitting incorrect information may also trigger backup withholding or audits.
3. Can I file my 1099 forms electronically?
Yes. Electronic filing through the IRS FIRE system is encouraged for faster processing and secure data transmission. You’ll need a Transmitter Control Code (TCC) to use this option.
Smooth Tax Seasons Start with Smart Reporting and Platinum Property Management
Navigating Form 1099 reporting and year-end tax preparation doesn’t have to be complicated. With careful recordkeeping, awareness of filing deadlines, and an understanding of the various IRS forms, Atlanta property owners can simplify their tax reporting process and avoid unnecessary stress.
At Platinum Property Management, we help Atlanta property owners stay informed and compliant year-round. From managing rental income to preparing for the next tax season, our team ensures your properties—and your paperwork—are always in order.
For more resources, contact us and explore how we can make your property ownership experience simpler and more profitable.
