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Accelerated Due Date for Form 1099-MISC

Posted by Murry Guy, CPA on Jan 18, 2017 9:47:10 AM

iStock-471597236-609526-edited.jpgBusiness owners beware

Several filing deadlines have changed beginning this month. Under the 2015 PATH Act, beginning with forms filed in 2017, Forms 1099-MISC, used to report non-employee compensation must be filed on or before January 31 of the year following the calendar year to which such returns relates. And those returns are no longer eligible for the extended filing date for electronically filed returns. (Code Sec. 6071(c)) View 2017 filing instructions for Form 1099-MISC.

File this form for each person to whom you have paid during the year: 

  • at least $10 in royalties or broker payments in lieu of dividends or tax-exempt interest;
  • at least $600 in:
    • rents;
    • services performed by someone who is not your employee;
    • prizes and awards;
    • other income payments;
    • medical and health care payments;
    • crop insurance proceeds;
    • cash payments for fish (or other aquatic life) you purchase from anyone engaged in the trade or business of catching fish;
    • generally, the cash paid from a notional principal contract to an individual, partnership, or estate;
    • payments to an attorney; or
    • any fishing boat proceeds,

In addition, use this form to report that you made direct sales of at least $5,000 of consumer products to a buyer for resale anywhere other than a permanent retail establishment.

Steps to Take to Prepare for 1099 MISC Forms: 

  • Request that your vendors, contractors, and other payment recipients submit to you a Form W-9.  The W-9 will provide you with the correct legal name, address, and taxpayer identification number for the vendor, which is the information you will need when preparing any 1099-MISC forms.
  • You should also keep track of your payments in your bookkeeping system to know the exact amount you paid the recipient for the year. 

Penalties for Filing Form 1099-MISC late: 

Penalties for late filing of form 1099 will double from their previous level. The penalty for non-filing of 1099s will increase from $100 to $260 per form. If the non-filing is considered intentional, the penalty jumps to $520 per form. This penalty can add up very quickly, so please observe the obligation to file 1099s and be sure to do it on time. View IRS Penalty Information.

  • $50 penalty for filing a 1099 for being 30 days late; maximum penalty $250,000 per-year ($75,000 for small businesses)
  • $100 penalty for filing a 1099 more than 30 days late, and before August 1; maximum penalty $500,000 per-year ($200,000 for small businesses)
  • $260 penalty for filing a 1099 on or after August 1; maximum penalty, 500,000 per-year ($500,000 for small businesses)
  • $520 penalty for intentional failure to file 

Deadlines for 1099-MISC forms:

The new due date if using box 7 (non-employee compensation) for paper and electronically transmitted forms sent to the IRS is January 31st. If filing Form 1099-MISC reporting any other box, the IRS filing due date is unchanged and is by February 28th if you file on paper and March 31st if you are filing electronically. The due date for furnishing payee statements remains January 31st.

For more information on the above article or any outsource accounting needs, contact Murry Guy, CPA at (334) 887-7022 or by leaving us a message below. 

Topics: Accounting & Outsourcing

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