IT IS NOW TIME TO START PREPARING IRS FORM 1099-MISC
NOTE: 2017 FORM 1099-MISC, reporting nonemployee compensation (box 7) is required to be filed on or before January 31, 2018.
The IRS penalty for failing to file 1099(s) is now $250 for each incident. In addition, the following tax returns: 1065 (partnership return), 1120 (corporate return), 1120S (s-corporation return), 1040 Schedule C (self-employed), and Schedule E (Rental Property) contain the following questions:
Did you make any payments in 2017 that would require you to file Form(s) 1099? [Y or N]
If “Yes,” did you or will you file required Form(s) 1099? [Y or N]
It is better to be in compliance than put in a position to have to:
(1) Declare noncompliance on your income tax return or
(2) Incorrectly answer a question on your tax return and then sign under penalty of perjury that you have reviewed the return and to the best of your knowledge it is true, correct, and complete.
ARE YOU REQUIRED TO FILE AND ISSUE FORM 1099-MISC?
Generally speaking, if you run a trade or business and pay $600 or more to someone who is not your employee (aka an Independent Contractor) you should be issuing Form 1099-MISC. It is really that simple…
There are other instances (and exceptions) regarding when and if Form 1099-MISC is required to be filed.
For further information take a look at Instructions for Form 1099-MISC.
Disclaimer: This Article is offered for general information and educational purposes and not intended to be tax or legal advice.