Form 1099 – A Business Owner’s Responsibility

Internal Revenue Service Form 1099-MISC

Filing IRS Form 1099-MISC is a Business Owner’s year end responsibility. For 2016, the filing deadline has been changed and falls on January 31, 2017. The new filing deadline applies to Box 7 Nonemployee Compensation. Consult the 2016 General Information for Certain Information Returns for specific filing information.

Historically, the non-employee recipient was to receive Form 1099-MISC by January 31st. Now, not only must the recipient receive the form by January 31st, but the IRS must as well.

The IRS requires Form 1099-MISC submission for a multitude of payees. For simplicity in this article, each independent contractor earning nonemployee compensation that a business pays more than $600 per year to must receive a Form 1099-MISC.

Consequently, the change in filing date can create stress for those dealing with the new deadline. Don’t create undue stress. Follow a simple rule, similar to what a responsible business owner would have in place for employees. Before paying an independent contractor, have the following Payee information documented on IRS Form W-9:

  • Legal Name
  • Tax identification number
  • Business Name, if applicable
  • Mailing address
  • Email
  • Phone number

Accordingly, collaborate to relieve stress over filings by using a service such as Track1099.

Track1099 imports pay data from Xero and Quickbooks Online. The service can also request that a payee complete Form W-9 if you have a payee’s email. The Form 1099-MISC will be sent to the payee by secure email or USPS if no email is on record. Once payee information is imported & verified, easily schedule forms for e-delivery and e-filing. As well, information can be updated and corrections processed and submitted efficiently. Accordingly, let an e-file service be a simple one-stop solution for Federal and State filing requirements.

Therefore, don’t get caught with your numbers not in order at year end. The IRS doesn’t want excuses. The IRS wants valid information to fight fraud and collect its due. Forms not timely filed are likely to result in an undesired correspondence from the IRS. Penalties are in place for non-timely filing, as well as intentional disregard of filing requirements.

If you have questions about your particular situation, always chat with your Tax Advisor.

Related Article