Form 1099-Misc

Does your business need to file a 1099-MISC? The deadline to give recipients their copies of any 1099-MISCs is in three days. Here is some last-minute information about 1099s.

You must file a 1099-MISC if you paid more than $600 per year for:
Medical and health care payments
Prizes and awards
Proceeds paid to attorneys
Services, including parts and materials.
Other types of payments
(Also, if you’re involved in fishing, boating, or agriculture, know that these payments also require a 1099-MISC: cash payments to fish or other aquatic life purchased from anyone in the business of catching fish, any fishing boat proceeds, crop insurance proceeds). Another lesser known instance that requires a 1099-MISC occurs if you’ve paid more than $10 per year for broker payments in lieu of dividends or tax-exempt interests. Finally, if you’ve paid more than $10 per year in royalties, you’ll need to file a 1099-MISC.

Filing a 1099-MISC 30 days late incurs a $30 penalty (the maximum penalty per for small businesses is $75,000 per year).
Filing more than 30 days late but before August 1 late incurs a $60 penalty (up to $200,000 per year for small businesses).
Filing on or after August 1 incurs a $100 penalty (up to $500,000 per year for small businesses)
Intentional failure to file a 1099-MISC incurs a $250 penalty, with no maximum penalty for small businesses.

January 31: Give recipient his or her copy of the 1099-MISC to report income for the previous calendar year
February 28: Mail 1099-MISC to IRS
March 31: E-file 1099s with IRS

Share this post


More To Explore


Race to the Finish

Do you realize that there are less than 80 business days left in this year? When I first saw that, it was kind of amazing

Do You Want To Boost Your Business?

drop us a line and keep in touch



Forgot your password?