If your business missed the January 31 filing deadline for 1099-MISC forms, don’t wait to file and avoid additional penalties associated with filing form 1099-MISC late or not filing at all. 1099-MISC forms were due on January 31, 2020, and businesses risk increasing fines the longer they wait to file or if they fail to file at all.
1099 Misc Penalties for Businesses
For businesses with gross receipts of $5M or less if 1099-MISC filed:
- No more than 30 days late; $50 per statement, up to a maximum of $194,500
- More than 30 days late but before August 1st: $110 per return; up to a maximum of $556,500
- After August 1 or not at all: $270 per return; up to a maximum of $1,113,000
- Intentional disregard; $550 per return. No limitation.
For large businesses over $5M in revenue, the penalties are the same, but the maximums are more.
According to the IRS website penalties may also apply if filed 1099-MISC:
- Fails to report a taxpayer ID#
- Reports an incorrect TIN
- Incorrect information is included on the statement
- File paper forms are not machine-readable (handwritten forms may become subject to penalties)
Businesses should obtain W-9’s from all vendors, especially those whom you will be issuing 1099-MISC forms.
When to File a 1099-MISC
Below are a few examples of payments made by businesses that require a 1099-MISC form to be filed with the IRS. Generally, businesses that pay $600 or more over the course of the year for the following are required to file a 1099-MISC form:
- Services performed by someone you do not employ
- Prizes and awards
- Medical and health care payments
- Payments to an attorney
In addition, use Form 1099-MISC to report that you made direct sales of at least $5,000 of consumer products to a buyer for resale anywhere other than a permanent retail establishment.
For a complete list, visit the IRS.gov website. Click here to read more about the 1099-MISC form on the IRS.gov website.
How DHJJ Can Help
If your business missed the 1099-MISC filing date, don’t wait longer to file. Penalties for businesses that fail to file timely 1099-MISC forms increase depending on how long you wait to file. If you missed the 1099-MISC deadline and are unsure how to proceed, contact DHJJ at 630-420-1360 or fill out the form below.