Meet Our New Client Service Manager: Andre Houston

We are thrilled to introduce Andre Houston as our new Client Service Manager at Porter & Company! With 15 years of experience in banking, Andre brings a wealth of knowledge to the table—not just in tax, accounting, and planning, but also in helping clients navigate lending needs.

What does this mean for you? Andre is here to ensure you’re getting the exceptional service you deserve. Whether you need to send over work, get updates, or have questions that need answers, Andre is your go-to person. He’ll make sure you’re connected with the right teams and that your concerns are addressed promptly.

Over the next few months, Andre will be reaching out to ensure engagement letters are in place for all clients. In the meantime, if you need assistance, feel free to reach out to him directly—he’s ready to help!

You can reach Andre directly at [email protected] or via our main line number at ext 23

Introducing Our New Project Coordinator: Mariza Malagon

We’re excited to introduce Mariza Malagon, our new Project Coordinator! Some of you may have already had the pleasure of interacting with Mariza, as she’s quickly become an integral part of our team.

What’s her role? Mariza will be managing the administrative side of our operations, including answering your calls and directing them to the right people. She’s also responsible for coordinating the flow of work coming into our office—when you send us documents, Mariza will ensure we have everything we need and will work closely with Andre to assign tasks to the right team members.

With her bright, energetic personality, Mariza has already made a positive impact, and we’re thrilled to have her on board. She’s here to help make your experience with us as seamless and efficient as possible.

You can reach Mariza directly at [email protected] or at via our main line number at ext 32.

The 1099 Lowdown: Who Gets One, Who Doesn’t, and Why You Should Care

If you’re a business owner, independent contractor, or anyone who hires vendors, you’ve probably heard of Form 1099. But are you clear on when you need to send one out? Do you know why waiting until now to get W-9s from your vendors is a bad idea? Let’s break it all down in plain English—with a side of tax-related encouragement to stay on top of your game.

What Is a 1099, and Why Should You Care?

A Form 1099 is how you report payments to certain people or businesses to the IRS. It’s essentially the IRS’s way of keeping tabs on who’s getting paid, so they can make sure everyone is paying their fair share of taxes. But here’s the kicker: if you should’ve issued a 1099 but didn’t, you might lose a tax deduction for that payment. Translation? You could end up paying more tax, and let’s not forget those pesky penalties.

Who Needs to Get a 1099?

Here’s a quick cheat sheet:

You must issue a 1099 to someone if:

• You paid them $600 or more during the year for services, rent, or other qualifying expenses.

• They’re not your employee (employees get W-2s, not 1099s).

• They’re a sole proprietor, partnership, or LLC taxed as a sole proprietorship or partnership.

• They’re not a corporation (with a few exceptions, like lawyers—yep, even corporate law firms get 1099s).

Common examples of 1099 recipients:

• Freelancers, consultants, and independent contractors (e.g., graphic designers, copywriters, or IT pros).

• Landlords (if you’re paying rent for office space).

• Your lawyer (even if they’re incorporated—thanks, IRS!).

You typically don’t need to issue a 1099 to:

• Corporations, except in those sneaky cases mentioned above (lawyers and medical/healthcare providers).

• Vendors you paid via credit card or PayPal (those are reported separately by the payment processor).

• Employees (again, they get a W-2).

Key Deadlines for 1099s

Mark your calendars, folks—these dates are non-negotiable:

• January 31, 2024: Provide copies of Form 1099-NEC (Nonemployee Compensation) to your recipients and file them with the IRS.

• February 28, 2024: If you’re filing other types of 1099s (e.g., 1099-MISC, 1099-INT) on paper, they’re due to the IRS by this date.

• March 31, 2024: E-file other types of 1099s (excluding 1099-NEC) with the IRS if you’re filing electronically.

Pro tip: If January 31 falls on a weekend or holiday, the deadline moves to the next business day. But don’t push it—late filing can mean penalties ranging from $50 to $290 per form, depending on how late you are.

Why You Need That W-9 Now (Not in December)

A W-9 is like your safety net. It’s the form you use to collect the information you need (like a vendor’s legal name, address, and taxpayer identification number) to issue a 1099.

Best practice:

• Get a completed W-9 from every vendor before you pay them a dime. Make it part of your onboarding process, just like getting a contract signed.

• Waiting until the end of the year is risky business. Vendors move, they ghost you, or worse, they suddenly decide they don’t have time to fill it out.

Better Safe Than Sorry: When in Doubt, Issue the 1099

If you’re on the fence about whether to issue a 1099, here’s your golden rule: issue it.

Why?

1. No penalty for over-issuing. The IRS won’t fault you for being overly cautious.

2. Big penalty for under-issuing. If you should’ve issued a 1099 but didn’t, and the IRS catches on, you could lose the deduction for that expense. Add penalties and interest, and suddenly that missed 1099 becomes a very expensive oversight.

We provide 1099 Preparation Services

As the January 31st filing deadline approaches, we are here to help you prepare and file your 1099s accurately and on time.

Pricing for 1099 Filing Services:

• $225 for the first 5 recipients.

• $25 for each additional recipient over 5.

• $25 per 1099 for changes or revisions not caused by Porter & Company.

• $2.75 per recipient to mail forms on your behalf.

Submission Deadline:
Submit your 1099 data to us by January 15th to avoid a 25% rush fee for late submissions.

Information Needed for Filing:

• Full name or business name.

• Address (for mailing).

• Social Security Number (SSN) or Employer Identification Number (EIN).

• Total amount paid during the year.

• Your company’s name, address, and TIN (if not on file).

Upload your 1099 data in an Excel file and send it to us here or reach out to Mariza Malagon at (817) 261-2582 or [email protected] for assistance.

We look forward to helping you meet your deadlines!