Changes to the 1099 Filing Due Dates
Beginning January 1, 2017, there are important changes to the IRS Form 1099 filing and reporting requirements. The Trade Preferences Extension Act, which became law on 6/29/15, included changes to the penalties for failing to file information returns with the IRS and failing to furnish required statements to payees. Penalties will also be imposed for incomplete or inaccurate returns. In addition to the increased penalties, the due date for issuing 1099s to the recipients has been changed from February 28th to January 31. We suggest that all clients review their 1099 requirements to ensure you have all of the necessary information for each vendor, professional, or other 1099 recipient so as not to hold up 1099 preparation at year end, as delayed filing could lead to substantial penalties.
Increased Penalties for Late or Incomplete Filings
The dollar amount of these penalties will vary depending on whether the failure was unintentional or willful, as well as on the time elapsed before the failure was corrected. The penalties range from $50 for one unintentional failure to file that is corrected within 30 days, to $100 if corrected by August 1st to $250 if not corrected by August 1st. Please note that these penalties are incurred per 1099 form. The penalty for willful failure to file is $530 per 1099 for 2016.
Not sure if you need to file 1099s? Not sure how to proceed? Have any questions at all? Let us know, we can help!