Outside Services & Sub-Contractors

The IRS Deadline to submit Forms 1098, 1099, & W-2 is soon, and Anvil Tax can help!

 

 

January 31, 2017, is the Deadline

Deadline for employers to mail out Form W-2 and for businesses to furnish Form 1099 statements reporting, among other things, non-employee compensation, bank interest, dividends, and distributions from a retirement plan.

Deadline for self-employed individuals to file and to pay their tax and avoid a penalty for not making your 4th quarter estimated tax payment.

New IRS Failure to File Form 1099 Penalties:

  • $250 penalty for intentional failure to file (was $100).
  • $250 penalty for intentional failure to Furnish to the payee (was $100).
  • This means the IRS could assess $500 per Form 1099 without any limits

What is a Form 1099

Form 1099-MISC is used to report miscellaneous income for individuals and companies (LLC’s) who have been paid $600 or more in non-employee service payments during a calendar year with the exception of royalty payments of $10 or more.

Please note that amounts paid for wages and other compensation paid to an employee are NOT reported on a Form 1099-MISC. These amounts are reported on a Form W-2.

Examples of persons whom you might have paid more than $600 to and are therefore required to issue a Form 1099-MISC include Independent Contractors providing services such as:

  • Attorneys
  • Accountants
  • Health care or medical care service
  • Performers
  • Physicians
  • Rents
  • Royalties

Anvil Tax is here to help with your Form 1099 and W-2 filings.