When are 1099-MISC Forms due?
This year’s due date has been moved up from mid-February to January 31! Forms must be sent out to recipients and the IRS by January 31, 2017 to give them ample time to report the income on their tax returns.
Who must file 1099-MISC Form?
If you paid any independent contractor $600 or more over the past year for services, you must prepare a 1099 for that contractor. 1099 forms must be sent out by January 31 of each year. You should send 1099 forms to contractors even if they do business as a limited liability partnership or limited liability corporation. The IRS does not view these entities as separate from their owners, meaning the owner is personally liable for taxes due.
Who do you have to file 1099-MISC Form for?
You must file 1099-MISC Form for each person to whom you have paid during the year:
- At least $10 in royalties or broker payments in lieu of dividends or tax-exempt interest
- At least $600 in rents, services (including parts and materials), prizes and awards, other income payments, medical and health care payments, crop insurance proceeds, cash payments for fish (or other aquatic life) you purchase from anyone engaged in the trade or business of catching fish, or, generally, the cash paid from a notional principal contract to an individual, partnership, or estate;
- Any fishing boat proceeds; or
- Gross proceeds of $600 or more paid to an attorney.
Beware of penalties!
Penalties for not filing 1099-MISC Forms can be steep and increase as you get further past the deadline. The penalty structure is as follows:
- Within 30 days past the deadline – $50/form
- After 30 days but before August 1, 2016 – $100/form
- After August 1, 2016 or not at all – $260/form
- The IRS could hit you with an intentional disregard to file penalty of at least $520/form.