The deadline for providing 1099’s to payees and filing with the IRS is quickly approaching. The due date is January 31.
Form 1099’s are required to be provided to all non-corporate payees to whom a business pays $600 or more during a calendar year for services, rent, awards or other payments. Form 1099’s must be provided to payees no later than January 31 of the year following the year in which the payments were made.
As you may be aware, there are penalties for failure to file the returns and/or provide them to payees, as well as for uncorrected errors.
For Form 1099’s, the following penalties apply:
1099 Information return provided: Penalty Amount:
Within 30 days of due date $ 50 per form
Before August 2 $100 per form
After August 1 $260 per form
Intentional Disregard (failure to file) Greater of $530 per form or 10% of amount required to be reported on the return
Stancil can prepare your 1099s. Please contact our Business Resource Group for this service or with questions you may have concerning this reporting requirement.