07 Dec 2017 form 1099 filing
The Internal Revenue Service requires the filing each year of Form 1099 information returns. All individuals, corporations, partnerships, limited liability companies and joint ventures that are engaged in a trade or business (including part-time businesses, and rentals) must file the forms. Failure to file required information returns will cause substantial penalties and could cause the disallowance of deductions. The penalty for not filing the forms or filing late could amount to up to $530 per form. The Internal Revenue Service also sends this information to the State Franchise Tax Board. The 2017 forms are due to the recipient and to the Internal Revenue Service by January 31, 2018.
A Form 1099 must be issued for payments made to those performing services, (i.e. fees, commissions, etc.) and for payments of rents, interest and pension distributions. Employee non-wage compensation (such as auto allowances) must be shown on Form W-2. A Form 1099 must be prepared for all individuals, partnerships, fiduciaries, and legal and medical corporations receiving $600 or more from you in a calendar year. Payments made to other corporations by you are exempt.
You must report for each recipient the type of service or payment made; the amount paid during the year; and the recipient’s name, address, and either their Social Security Number or Federal Identification Number. It is very important that you obtain correct names (if the recipient is an individual’s business, the 1099 must include the individual’s name along with the doing business name) and Social Security Numbers. The Internal Revenue Service has been issuing tax notices due to incorrect or missing information. Penalties can be assessed with these notices for errors that you make. As a reminder, if an individual is listed as a recipient, a Social Security Number is required. All business entities must have a Federal I.D. Number.
We can prepare and file the required Federal forms for you. Please use the link to print our Form 1099 Information for 2017 worksheet, used to supply us with the information we need.
Please send your information to us by January 10, 2018. This will enable us to prepare the required forms so that they can be filed and you can distribute them to the recipients before the due date.
As a reminder, the Employment Development Department requires you to report payments in excess of $600 to individuals who are independent contractors within 20 days of the occurrence by using Form DE 542. To get the form, please use the link provided.
If you have any questions concerning filing requirements, please call our office.