Whenever an independent contractor is an
individual or a sole proprietorship, associations are required to report
whenever they pay that contractor more than $600 in a calendar year.
Whenever an association obtains services from independent noncorporate contractors such as landscapers, handymen, pool service, janitorial and professional services totaling $600 or more during a calendar year, the association issue a Form 1099 in January to the service provider and submit one to the Internal Revenue Service by February 28.
The association must provide the name and address of the service provider, the amount paid to the provider during the calendar year (even if the association is on a fiscal year) and the provider’s EIN or social security number.
Management and bookkeeping services should prepare these forms as a part of their services to you. If you do them yourself, forms are available from the IRS.
Thank you to Michael J. Gartzke, CPA of Goleta, California.
: Associations needing legal assistance can contact us
To stay current with issues affecting community associations, subscribe to the Davis-Stirling Newsletter