To ensure uninterupted updates and news delivery, please add email@example.com to your address book. Update #2- January 20, 2017
With sharply increased information reporting penalties in their second year (as high as $260 per late Form 1099), timely issuance of Form 1099s has become imperative for many businesses. The urgency for timely reporting is compounded by the continued presence of questions on Forms 1065, 1120, 1120S, and 1040, whether the taxpayer made any payments in 2016 that would require the taxpayer to file Form(s) 1099. Starting this year, taxpayers also face earlier deadlines for reporting W-2 and 1099 information to the Social Security Administration and the IRS.
Do You Need To File 1099-MISC?
The Form 1099-MISC is probably the most filed Form 1099 of the series. You must file Form 1099-MISC, Miscellaneous Income, for each person (subject to the exceptions listed below) to whom you paid during the year:
The Cost of Inaccurate 1099's Varies
The penalty rates for failure to file correct information returns and/or to furnish correct payee statements depend on how late the correct Form 1099 is filed and can range anywhere from $50 per return to $260 per return. The per-failure penalty is $530 for a taxpayer who intentionally disregards the filing requirements for information returns and payee statements.
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