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