1099-Misc Filing Requirements and Penalties for 2018
Jackie Himes, CPA
Focused on You. Dedicated to Your Success.
February 20, 2018

As you know, the IRS changed the deadline for filing government copies of 1099-Misc forms to January 31 st last year. You should issue a 1099 to any person or unincorporated business (including an LLC not being taxed as a corporation) that you paid $600 or more cumulative during the year for services (including parts and materials and rents). 

We want to make you aware that the IRS is enforcing late penalties. So, if you are behind schedule on filing 1099-Mics forms, now is the time to focus on getting the job done. IRS penalties may apply if you:
  • Don’t file a correct information return by the due date and a reasonable cause is not shown
  • File on paper when you were required to file electronically
  • Don’t report a Taxpayer Identification Number (TIN)
  • Report an incorrect TIN; or
  • Don’t file paper forms that are machine readable

Here are the IRS penalty tables pulled from its website:

Large Businesses with Gross Receipts of More Than $5 Million
Small Business with Gross Receipts of $5 Million or Less:
As you can see the penalties increase the later the filing. Also, the “per return” refers to each individual 1099 form.  

As always, we are here to help. Feel free to call any member of our team at 610-828-1900. Or contact either Jackie Himes, CPA, tax manager at Jacquelyn.Himes@MCC-CPAs.com or myself Marty.McCarthy@MCC-CPAs.com .
Martin C. McCarthy, CPA, CCIFP
Managing Partner
McCarthy & Company, PC

Disclaimer This alert is for informational purposes only and does not constitute professional advice. Information contained in this communication is not intended or written to be used as tax advice, and cannot be used by the recipient to avoid penalties that may be imposed under the Internal Revenue Code. We strongly advise you to seek professional assistance with respect to your specific issue(s).