We’re now two weeks from the deadline for 1099-MISC forms with a Box 7 amount. Have you completed the filings you’re responsible for?
If so, congratulations! We know you’re still adjusting to the deadline, changed last year from March 31st to January 31st. Getting those forms in on time is crucial to avoiding penalties from the IRS.
If you haven’t filed your 1099-MISC Box 7 forms yet, those penalties could be headed your way. Here’s a breakdown of those penalties:
- Up to 30 days late: $50 penalty per return, $536,000 maximum
- 31 days late – August 1: $100 penalty per return, $1,609,000 maximum
- After August 1: $260 penalty per return, $3,218,500 maximum
Those penalties strengthen further if the IRS deems you have intentionally disregarded the filing requirement. The penalties amount to $530 per return, with no maximum penalty.
What’s keeping you from filing?
One misconception you might have is that all forms for a payer have to be filed at once, in a single batch. When you eFile, this is not the case. You can submit forms under one payer in multiple batches. No 1096 accompanies your 1099 eFile, so the filing will not be affected. This is a major benefit of eFiling, as it will help you manage your penalties. Instead of holding 30 forms back for the sake of missing information on one form, you can file the forms that are ready, and follow with the last form later.
What else is keeping you from submitting your filing? We’ll do our best to help you through the process.
Visit Tax1099 now to begin.