Be sure to timely file your 2017 Information Returns!
Any person engaged in a trade or business, including a corporation, partnership, individual, estate, and trust, who makes reportable transactions during the calendar year, must file information returns to report those transactions to the IRS.
A common information return is a Form 1099-MISC.
Here are a few of the common payments that give rise to a Form 1099-MISC:
- Payments totaling $600 or more for services performed by independent contractors or others (not employees of your business) (report in Box 7 of Form 1099-MISC)
- Payments totaling $600 or more for Rents (report in Box 1 of Form 1099-MISC)
- Payments totaling $600 or more paid to an attorney (report in Box 7 or Box 14 of Form 1099-MISC).
Generally, you are NOT required to file a Form 1099, if:
- The payment was made to another business that is incorporated, or
- The sum of all payments made to the person or unincorporated business is less than $600 in one tax year.
For a complete list of the due dates for filing information returns to the IRS and to the recipient, click here. IMPORTANT NOTE: The filing deadline is January 31, 2018 for non-employee compensation reported on Form 1099-MISC, Box 7.
If you fail to file a correct information return by the due date and you cannot show reasonable cause, you may be subject to a penalty. The penalty applies if you fail to file timely, you fail to include all information required to be shown on a return, or you include incorrect information on a return. The penalty also applies if you file on paper when you were required to file electronically, you report an incorrect TIN or fail to report a TIN, or you fail to file paper forms that are machine readable. Penalties range from $50-$260 per information return.
For more information regarding Information Returns, click here. Or visit the IRS’s website at www.irs.gov.
Let us know if you have any further questions regarding Information Returns.