Does your Canadian company have U.S. agents who are soliciting business in the United States? Did you pay subcontractors, non-employed by your company, to provide services to U.S. customers? If so, you may be required to file U.S. Form 1099-MISC and Form 1096.

U.S. Form 1099-MISC must be filed in order to inform the Internal Revenue Service (« IRS ») of payments made by corporations (Canadian or American) to U.S. individuals (independent agents not employed by the corporation) for services rendered in the United States or to U.S. attorneys for legal services. These forms must be filed by corporations that have made payments of at least $600.

What to file?
Any Canadian or American corporation must file with the IRS the following forms in order to report the payments they have made:

tax slips Form 1099-MISC;
summary Form 1096.

These forms can either be filed electronically or mailed to the U.S. tax authorities. Please note that the tax slips and summary mailed to the tax authorities must be printed on the original forms provided by the IRS.

When to file?
Forms for payments made during the 2018 calendar year must be filed with the IRS by January 31st, 2019. The tax slips Form 1099-MISC must be furnished to the recipients also by January 31st, 2019 (or February 15, 2019 for payments to U.S. attorneys for legal services); otherwise, penalties may apply.

SHOULD YOU REQUIRE ASSISTANCE IN THE PREPARATION OF YOUR U.S. FORMS 1099 AND FORM 1096, PLEASE CONTACT MRS. CHRISTINE PICHÉ, MEMBER OF THE DEMERS BEAULNE’S INTERNATIONAL TAX TEAM PROACTIVELY AT YOUR SERVICE:

Christine Piché
Tax Technician
Telephone: 514-878-3588, ext. 399
Email: cpiche@demersbeaulne.com