In an effort to reduce identity theft and improve tax compliance, the Internal Revenue Service has made recent modifications to the due dates for information return Form 1099-MISC.
Congress passed provisions in the Protecting Americans from Tax Hikes (PATH) Act of 2015 that accelerate the due date to January 31 for filing information on nonemployee compensation, effective for returns and statements relating to calendar year 2016. The accelerated filing date of January 31 for Form 1099-MISC matches the due date for providing written statements to payees receiving nonemployee compensation.
You can get an automatic 30 day extension of time to file by completing Form 8809. However, you must file Form 8809 by the due date of the return (January 31, 2017) in order to get the extension.
Form 1099-Miscellaneous must be filed by a business for any non-incorporated entity to whom you paid $600 or more for services and rents, and $10 or more for interest and dividends during calendar year 2016. Non-incorporated entities include individuals, partnerships, LLCs and LLPs. Form 1099-MISC must also be sent to attorneys. All attorneys, including corporations, must receive a 1099-MISC form if paid $600 or more. If payment is made by credit card or debit card, the payment is not required to be reported on a 1099 form.
The 1099-MIISC forms are to be mailed to recipients and filed with the Internal Revenue Service by January 31, 2017. To comply with the IRS deadlines, please provide the following information to our office by January 13, 2017.
- Entity’s name (person’s name if sole proprietor)
- Entity’s address
- Entity’s identifying number – for individuals, a social security number and for businesses a Federal employer I.D. number
- Total amount paid for 2016 and type of compensation (i.e. service, rent, interest, dividend)
We strongly suggest you have all entities fill out Form W-9 to obtain their correct information. To download Form W-9 and instructions, use our website at www.bhcbcpa.com. Click on “Resources”, then click on “Internal Revenue Service”, under “Forms and Pubs” click on “W-9”.
We will be electronically filing Forms 1096 & 1099 with the Federal and state agencies.
Failure to file, filing late, failure to include all information required or including incorrect information can result in a significant penalty per 1099 form.