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.
Let us know if you have any further questions regarding Information Returns.