Reminder: Altered Due Dates for 1099s
January 13, 2017
By Charles Webb, partner
Now that 2017 has arrived, we wanted to remind you of some important new due dates that will affect your business. Specifically, we want to ensure your awareness of the altered due dates and penalties associated with 1099s.
The IRS mandates that all companies issue Form 1099-MISC to any non-corporate service providers, including accountants and lawyers, to which they paid at least $600 during the prior tax year. In previous years, taxpayers had until Jan. 31 to send Form 1099-MISC to their service providers and March 31 to file them with the government. Beginning in 2017 (for the 2016 tax year), both the service provider form and the government form will be due Jan. 31, 2017.
These new rules also increase the associated late filing penalties to a maximum of $250 per return. This penalty applies to both the return that must be filed with the IRS and the copy that is sent to the taxpayer; thus, it can potentially lead to a $500 penalty per missed Form 1099.
Since these tax modifications are so significant, we strongly encourage you to immediate begin the process to update your vendor tax information in order to get the Forms 1099 filed by Jan. 31. Vendor information can be updated via Form W-9. Please note that Aprio is required to receive a Form 1099-MISC for fees paid by your business to us during 2016.
If you need assistance preparing your Forms 1099s, our affiliated company, Aprio Payroll, can assist. Click here to be taken our online portal for 1099 submissions. Aprio Payroll Services can also handle all of your other payroll needs, in addition to 1099s. Please contact Stephanie Oliver at 404-961-8421 or via email at Stephanie.Oliver@apriopayroll.com.
Any tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or under any state or local tax law or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein. Please do not hesitate to contact us if you have any questions regarding the matter.
About the Author
Partner At Aprio Charles is a partner in Aprio’s Technology & Biosciences and International Services groups. He has more than 25 years of experience providing tax planning, tax compliance and strategic analysis to his clients. Charles is adept at serving the needs of startups and other emerging companies. He has been an entrepreneur himself and understands firsthand the needs and challenges growing companies face.