In an attempt to decrease the number of fraudulent individual tax returns, the IRS has decided to do away with automatic extensions for Forms 1099-MISC with NEC Reporting in Box 7.
Extensions may still be requested using Form 8809, but they will not be automatically granted and must fall within certain allowances such as first-year filing or catastrophic events.
The deadline for filing Forms 1099-MISC with NEC Reporting is January 31, 2019. All other Forms 1099-MISC are due by February 28, 2019, if filing by paper or April 1, 2019, if filing electronically.
What is the best practice to ensure timely filing of Forms 1099-MISC with NEC reporting?
The best advice for timely filing any return is to plan ahead!
Keep track of the information you will need throughout the year.
This includes vendor names and TINs. The best way to do this is to request a signed Form W-9 from the vendor at the beginning of the business relationship. However, if you forgot to do so, you can request a Form W-9 from them at any time.
It’s always a good idea to request a new signed Form W-9 from vendors every year that you continue to have a relationship with them, in the event of any information changes.
Be proactive about verifying the TIN information.
Failing to provide the correct TIN in your filings can result in fines from the IRS. Tools like TINCorrect can help you minimize the chances of incurring these penalties year-round by allowing you to verify the information you have on file with IRS records.
File all 1099-MISC forms in January, if possible.
If you are able to file all of your NEC and Non-NEC reporting Forms 1099-MISC by January 31, you should go ahead and do so. This will help you minimize the chance of incurring late fees.
However, if you do NOT have all Non-NEC reporting Forms 1099-MISC ready to file by January 31, be sure to file all Forms 1099-MISC with NEC reporting by the deadline and then file your Non-NEC reporting Forms 1099-MISC by February 28 (paper) or April 1 (e-file).
Once you have submitted these forms to the IRS, either electronically or via mail, and have received your “Accepted” status, then you have met all of the IRS requirements for these forms.
If you’re looking for a broken down Understanding Form 1096 guide in a downloadable format, make sure to download our PDF guide to keep a copy next to you at all times.
BoomTax, The Boom Post, and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors prior to engaging in any transaction.