One of the most sweeping changes from last year are the 1099 due date changes. These must be filed with the IRS by January 31, 2017. Previously, we have had to get them to recipients by January 31, to the IRS by February 28th if paper filing, or by March 31st if filing electronically.
Please have your 1099 information to me no later than January 15th to ensure timely filing.
Note that if changes must made, we can make correction thru August 1. Also, know that with the increasing focus on 1099's, the focus on enforcement will increase as well. I am talking about penalties. I have included the latest IRS penalty schedule below.
How do you know if you have to file? See below from the IRS:
If you pay independent contractors, you may have to file Form 1099-MISC, Miscellaneous Income, to report payments for services performed for your trade or business. If the following four conditions are met, you must generally report a payment as nonemployee compensation.
- You made the payment to someone who is not your employee;
- You made the payment for services in the course of your trade or business (including government agencies and nonprofit organizations);
- You made the payment to an individual, partnership, estate, or in some cases, a corporation; and
- You made payments to the payee of at least $600 during the year.