The 1099-MISC is a vital form used for miscellaneous distributions to individuals. This captures compensations for things like rent, prizes and awards, healthcare payments, and even payments to an attorney.
When to File A 1099-MISC Form
The Internal Revenue Service (IRS) requires that miscellaneous payments to individuals (more than $600 within the year), including payments for rent, prizes, and awards, be filed using a 1099-MISC form. This can include any company raffle or grand prize distributed in the form of cash, trips, etc. Other income payments, including medical and health care payments, payments to an attorney for legal services, or dividends of $10 or more for the year, must also be filed on the 1099-MISC form.
1099-MISC Form Deadline
The deadline to submit the hard copy of the 1099-MISC form is February 28; while the electronic copy is due by March 31.
Businesses are also expected to issue the 1099-MISC form to recipients by February 1, whether this is an electronic copy or paper copy. If you happened to pay a sum of $600 or more in attorney fees, the deadline to issue to your recipient is February 15.
The IRS advises that all 1099-MISC forms must be filed in a timely manner and without errors, to avoid penalties.
Penalties can incur for failing to include all required information and for incorrect information on your 1099-MISC forms. If you file on paper forms that are not machine-readable and even file a paper copy when an electronic version is required (depending on the number of forms filed), you can be penalized. Additionally, if you exclude the appropriate TIN or have an incorrect TIN, you can be penalized.
Be sure to get started with your tax form filing as soon as possible. This will help to give you time to review and correct any errors before submitting your 1099-MISC form. If you discover a mistake when you have submitted it close to the deadline, you run the risk of being penalized for filing a corrected form late.
At Bookkeeping Confidential, we are ready and able to assist your small business with all tax form filing in a timely manner. If you need assistance with figuring out which forms you need to file and with submitting them to the IRS in due time, let us help you. Connect with us, now!
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