IRS Form 1099 Filing Deadline and Requirements for 2018

January 7, 2019
January 7, 2019 Vrinda Mamundi

Form 1099 is an information return required to be reported to the IRS.

Every person engaged in a trade or business, including an individual, Limited Liability Company, partnership and a nonprofit organization, must file information returns for the calendar year if they made certain payments during the year.  The due dates for forms 1099 are January 31st.  They must be filed with the IRS and provided to the vendor by this date.

  1. Payments made totaling $600 or more during the year for services rendered will require a 1099 MISC.
    • Rent paid to non-corporate landlords will require a 1099 MISC for amounts totaling $600 or more.
    • Non-employee compensation ($600 or more), such as fees, commissions and awards paid to a non-employee for services including professional service fees.
  1. Interest payments of $10 or more paid to non-corporate individuals during the year will require a 1099 INT to be filed.
  2. Dividend payments of $10 or more and other distributions made to persons during the year will require a 1099 DIV to be filed.

Do NOT include corporations as they are exempt (except for attorneys)

Payments to vendors by credit or debit card, or by services like PayPal should NOT be reported on form 1099.  The bank or third party payment provider is required to report these transactions on form 1099-K.

We always recommend that before you enter into an agreement with a contractor or another individual who is going to perform services for you that you have them complete a W-9 and keep with your records.

In order to comply with the 2018 IRS requirements for the filing of 1099 Informational Returns we request that you compile information for us from your 2018 records. To access the payee information report, download the 1099 List, complete and return to our office no later than January 15, 2019.  It is imperative that the names and EIN or Social Security numbers are accurate.  We, in turn, will prepare the 1099 forms, and return them to you early enough to meet the January 31st deadline for mailing them to payees.

We must stress the importance of accuracy and timeliness in the preparation of these returns in order to avoid any IRS penalties.  IRS penalties begin at $50 per 1099 filed within 30 days from the original due date.  If you file the form more than 30 days late but before August 1st, the penalty jumps to $100 per 1099.  If you file after August 1 or do not file required information returns, the penalty is $260 per return and continues to increase from there with a maximum penalty of $1,072,500 for small businesses with annual gross receipts of less than $5 million for the three preceding tax years.  We do not accept responsibility of any penalties for 1099’s not filed if they were not included in your listing or not provided to us in a timely manner.

For any outstanding questions or concerns, contact us and we will be able to assist you.