Are you required to file 1099’s or other information returns? Here are some helpful tips from the IRS website to help you stay in compliance and avoid penalties, which start at $50 for each form you fail to file timely, fail to include all required information or include incorrect information on the return. These penalties can add up, and were a maximum of $1,064,000 per year for small businesses for filings due in 2016. Penalties for intentionally disregarding the filing requirements are significantly higher.
I’m here to make sure you avoid penalties and stay in compliance with some helpful tips from the IRS website.
The first thing you need to know is the due date for certain 1099-MISC forms is January 31, 2017, so it’s very important to identify your 1099 vendors and obtain the information you need to prepare the 1099’s sooner rather than later.
If you made or received a payment during the calendar year as a small business or self-employed (individual), you are most likely required to file an information return to the IRS. This following information is applicable to specific and limited reporting requirements only. Contact me if you have made or received any other payments not included below.
Made a Payment
If, as part of your trade or business, you made the following types of payments, you may be be required to issue Form 1099-MISC.
This list is not all-inclusive and you may be subject to 1099 reporting for other items – contact me and I’ll help you figure it out.
Rent or royalty payments
Prizes and awards
Services performed by independent contractors or others