Before you begin preparing your Form 1099-MISC reporting, it is important that you know what information you need to gather. This step-by-step guide identifies 5 key topics that will help you correctly and timely file your Form 1099-MISC.
What’s New for 2018?
The IRS recently announced that Forms 1099-MISC with NEC (Box 7) reporting will no longer receive automatic extensions of time to file in order to combat an increase in fraudulent tax returns. Extensions can still be requested, but will not be automatically granted. Please refer to the instructions for Form 8809 for more information on how to request an extension.
Determine who receives a Form 1099-MISC
Forms 1099-MISC are completed for non-employees who have, in the reporting year, been paid by the reporting company for rents, royalties, prizes and awards, and substitute payments in lieu of dividends.
Gather the information to prepare Form 1099
The information needed to prepare Form 1099-MISC includes the taxpayer names, addresses, and identification numbers for the reporting company (“payer”) and the recipient (“payee”), as well as the amounts paid to the recipient.
Verify your information
It is important that you take the time to review the information you are reporting on your Forms 1099-MISC for accuracy before distributing and filing, including the payment amounts and taxpayer information. This will minimize the risk of incurring penalties and fines.
The most common errors returned are invalid TINs. If you don’t correct invalid TIN errors, then you may be subject to notices and/or penalties from the IRS. You can get ahead of these errors by using products like TINCorrect to verify the TIN information you have against IRS records before submitting your filing.
Distribute and file
The IRS and recipient each require copies of the 1099-MISC form, as well as some state tax departments.
Deadlines for Form 1099
All recipient copies of Form 1099-MISC must be distributed by January 31, 2019.
The IRS eliminated automatic extensions for Form 1099-MISC with NEC reporting. This means that Forms 1099-MISC with NEC reporting must be submitted to the IRS by January 31, 2019. All other Forms 1099-MISC must be submitted on paper by February 28, 2019, or electronically by April 1, 2019.
Please note that you must file electronically if you have over 250 Forms 1099-MISC to report for Tax Year 2018.
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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.