As the end of the year approaches, we want to have you start thinking about the 1099 process because the deadline to file is earlier this year. Below are some items that are new for 1099s this year.
- Form 1099-MISC is to be filed with the IRS by January 31, 2017 if reporting non-employee compensation payments in box 7. In the past the due date was February 28. If no box 7 amount is being reported, the form is due February 28, 2017 for paper filing and March 31, 2017 for electronic filing.
- Penalties have increased:
It is important to file a complete set of 1099s with accurate information. Not filing your 1099s or filing with incorrect or incomplete information may leave your company open to IRS penalties. All of your vendors should receive from you a Form W-9 to fill in and send back for you to keep on file. If you are needing a W-9 and instructions to send, click here to go to the IRS’s Form W-9 and instructions.
Form 1099-MISC should be issued to any non-corporate entity you pay $600 or more to during the year for services, any corporate or non-corporate attorney fees or veterinary fees, rent, and many other items. Click here to go to the Form 1099-MISC instructions for 2016 to see the specific instructions and detail on all the items needing to be reported on Form 1099-MISC.
For more information please contact a BerganKDV Advisor.