support@tax2efile.com
          703-229-0326

Efile IRS Tax Form 1099 Online | Electronic filing of form 1099 Made Easy

Etax1099.com is the IRS authorized efile provider for 1099 tax forms. It comes from a series of tax e-file services provided by yakshna solutions inc, which is a leading provider in the tax industry. There are customized packages available for tax professionals as well as individual filers to report their form 1099's with ease. It provides bulk filing features and customer support over phone, chat and email.

File form 1099 with etax1099 today !

How to Differ Form 1099 and W2 Form? - Independent Contractors Vs Employees

Posted by Admin on 25. July 2017 06:19

Many taxpayers confuse themselves with 1099 form and W2 form as both the forms serve a different purpose for workers. Federal Income Tax forms 1099 and W2 are used to report an individual’s income which is earned from various sources throughout the financial year. But each form is issued under different scenarios and it requires different approaches when you file federal income taxes. If you are an independent contractor, you must file 1099-MISC Form; if you are an employee you must file W-2 Form with IRS. This article brief you the basics of W2 form and 1099 forms, so that it avoids the misperception while you file the tax.

Form 1099 Vs W2

About W2 Form

A Form W-2 is a Wage and Tax Statement, if you are an employee and receive a fixed salary or wage from your employer then you will receive Form W2. As per IRS, an employer must record their employee’s salary and tax information; in turn, report it to the employee on a W2 form. W2 Form contains the details of the employee’s earned income from the employer and this can be used in the calculation of the employee’s gross income. Also, it specifies the tax withholdings for the year which includes both federal and state taxes.

Form W-2 is due date

    •  -to your employee copy by January 31,
    • -Paper filing with IRS by February 28/29 and
    • -E-filing with the IRS by March 31.

About IRS 1099 Form

Form 1099 is used to hold the records of income that you receive as an independent worker while working for different sources. For instance, if you are a freelancer and working for multiple clients, then you may receive 1099-MISC Form from all the clients when they have paid you at least $600 during the financial year. An individual may receive different IRS 1099 series forms, depending upon their sources of income or money making activities.

Form 1099-MISC is due date

  • -to your recipient copy by January 31,
  • -Paper filing with the IRS by February 28/29 and
  • -E-filing with the IRS by March 31.

How Independent Contractor Differs from Employees?

 

  • As a self-employed or freelancer or contractor, you must calculate your own 1099-MISC taxes and need to file and submit with the IRS before the 1099 due date on a quarterly basis.
  • As a W2 employee, payroll taxes automatically debited from your salary then paid to the IRS through your employer or organization on the yearly basis.
  • If you are not sure about whether you are hired by independent contractor or employee, you can able to submit SS-8 Form with IRS. IRS people will find your status based on provided information, keep it in mind this SS-8 Form will take 6 months to process and returned.
  • Form 1099-MISC reports income of prizes won, rent payments, fishing boat proceeds, and attorney fees of $600 or more.
  • Form W2 reports total income, social security, and Medicare income and shows how much amount has been withheld from employee pay for federal income taxes to state and local taxes.
  • 1099-MISC Form specifies only the income you received from the client but does not contain the information related to the taxes which you have paid to the government.

Stay with us for more tax tips with Etax1099, Compare your income information on both the forms and apply for it accordingly. Etax1099 helps you to file 1099 taxes comfortably.  If you have any queries give us a call or send us a live chat or 24*7 basis on weekends also. You can Email us at anytime support@tax2efile.com.

IRS Warns Taxpayers to know about Summertime Scams in 2017

Posted by Admin on 11. July 2017 11:17

During the past tax filing season, most of the taxpayers received Tax tips to their email inbox directly. Those tax-filing tips helped the tax filers to get the tax related information and helped to file their tax returns appropriately. As the taxes are year-round for most of the taxpayers out there and also many taxable scenarios rise during the summertime. Hence, the Internal Revenue Service provides a summertime tips program starting from July 3rd, 2017. The IRS wants the taxpayers to sign up for the email service so that they can get the basic information and clarification on their taxes. It also lets the tax filers learn about the tax complications of events, which occur more often during the summer time.

Summertime Tax Tip Topics

Few of the Summertime Tax Tip topics that are offered by the IRS in this tax season 2017 -18 include the following:

1.       Beware of the tax scams as those tax scams do not take vacations.

2.       Teens and their summer part-time jobs.

3.       Tax implications on vacation home rentals.

4.       Tax implications that you need to know before getting married.

5.       IRS notices – What you could receive in the mail from the IRS

Those IRS tax tips that are sent through the email service are available in both English and Spanish. The provided tax tips are new and they hit the email inbox’s every three times a week during the month of July and August. The subscribers are also entitled to receive the tax tip every day of the week during the tax filing season and issues a special edition tax tips throughout the year.

The summer tax tips are more helpful to the tax files as they come in plain language and importantly it covers a wide range of essential topics that are related to taxes. Among the tax tips, the IRS warns the taxpayers in this summer tax filing season to watch for tax scams.

IRS Warns  about Summer Time Tips 

Recently the Internal Revenue Service issued a warning related to tax frauds, which is continuing across the nation even most of the tax filing is completed by the taxpayers. In spite of those conditions, people need to remain on alert to the emerging schemes that are involved in the tax system. Discussing few of the swindles from which the people need to keep away.

Robo-call Messages:

Remember that the IRS never call and leave a prerecorded message for a callback. In this case, the scammers warn the persons that if they do not call back, they will issue a warrant against the victim. If a person attends the call, then he/ she will be asked to do an immediate payment either by debit card or through wire transfer.

Private Debt Collection Scams:

Recently the IRS started to send the emails directly to the small group of taxpayers whose overdue of tax accounts are assigned to private sector collection agencies. Hence the taxpayers must be alert for the scammers who are posing as private collection firms. The IRS authorized firms will call about a tax debt the person has had.

EFTPS scam:

Electronic Federal Tax Payment System (EFTPS) linked scam is a new way that the scammers do in recent times. In this case, the scammers call and demand an immediate payment. The caller also adds that he/she is associated from the IRS and tells that letters mailed to the taxpayer were returned to the IRS as undelivered.

Finally, the scammer threatens the victim with arrest if the payment is not done immediately. And the victims are told that the debit card is linked to the EFTPS, which is controlled by the scammer.

Scams Targeting a Specific Sector of People:

The persons with limited English proficiency are the recent target of the phone scams that continue to occur across the country. Here the con artists converse with the victims in their native language and threaten them with police arrest, deportation and license revocation among other things. The scammer warns the victim to pay the tax amount promptly else they need to face the consequences.

How to Ensure it is a Call from the IRS?

The IRS contacts the people through regular mail delivered by the United States Postal Service. In few cases, the IRS will connect you via call or come to the home in the following circumstances:

 

    • ·         When the person has an overdue tax bill.
    • ·         When there is a need to secure a delinquent tax return or employee tax payment.
    • ·         Auditing the business as a tour or
    • ·         At the time of criminal investigations.

 

So stay away from the tax scams and be alerted. If you have experienced or received a scam call, ensure to report them to the concerned department in IRS. 

10 Mid-Year Tax Tips for Small Business Owners and Operators

Posted by Admin on 26. June 2017 10:09

Cheers, all successful taxpayers for surviving the 2017-18 tax year. Now it is time to start planning for the next financial year. Isn’t it too early to start? But it is good enough to initiate our plans and prepare our tax details right now as it can reduce hectic last minute tax filing. Form 1099 refers to an “Information Return”. A person might get 1099 form through the mail when he/she had received income from various forms other than salary during the tax year. The earnings may be through self-employment, small business, interests, dividends, government payments and more. The firm or entity that pays you must file the appropriate 1099 form and send it to you by January 31, 2018.

Mid-Season Tax Tips for Small Business Owners 

When you are engaged in small business, then you must file 1099 form for the small business. Like individual taxpayers, small business owners can also enjoy the advantages of tax-saving techniques. Presenting you top ten strategies at the midyear for small business:

1. Stockpile on Depreciable Equipment:

As per the law, the maximum section 179 deduction for business equipment is restricted to $25,000 only, whereas 50% bonus reduction is not allowed this year. Hence at the time of tax return, you can increase the deductions, comprising retroactive extensions of favorable provisions.

2.  2.  A New Start-up:

If you are starting a new business, then you are allowed to currently deduct up to $5,000 of qualified start-up expenses. In order to qualify for this tax break, you must be officially open for business.

3.  3. Self-Employment Taxes are Partially Deductible:

When you are an employee and working for an employer, then the employer is responsible for paying half of your social security and medical care tax obligations. But if you are a business owner or self-employed you must pay all those taxes. Then you can claim a deduction equivalent of your employer’s portion through Schedule C or Schedule C-EZ.

4. Hire from your Family:

When you are looking to hire workers, your first choice must be your family members. Yes, when you hire your spouse and offspring you get significant tax savings. And for your children, while they declare the income their tax rate is much lower. Additionally, if you are paying health insurance for the family members then those expenses are also coming under tax deduction through Schedule C or Schedule C-EZ.

5. Business Trips as Vacation Time:

Generally, you can deduct travel expenses such as airfare, transportation charges, lodging and half of the meal costs if the primary purpose of the visit is business related. Note that certain expenses like sightseeing and jaunt are nondeductible.

6. Passion Towards Business:

 For some people, their hobby might have turned into a business. Nevertheless, if any loss is incurred, then they must portray that they are engaging in the activity of generating profit. Else it comes under the “hobby loss” rules. So ensure to submit records to stand up the challenge of IRS.

7. Rejoice with your Staff:

For business, there is a particular part of deductions that are related to entertainment and it is limited to 50% of the cost. However, for Labor Day picnic or July 4th when the entire workforce is invited you can have 100% of special tax law exception.

8. Fix Minor Repairs:

Under tax law, minor repairs are deductible whereas the cost of major improvements must be capitalized. On the other hand, when there is a major repair, IRS treats the entire cost as a capital improvement.

9. Claim Credit for Interest:

Many entrepreneurs and small business owners mostly depend on credit and loans. The IRS permits the small business owners and self-employed persons to claim tax breaks on interest and carrying charges on loans.

10. Make Estimated Tax Payments:

As a self-employed employer, it is your responsibility to take care of deduction from each paycheck. It is wise to make quarterly estimated payments else you might faint at the giant tax bill and also hefty underpayment penalties.

In order to prepare tax expenses for the financial year, you may need a professional assistance. To get legal advice related to your business, tax return preparation, filing Form 1099 for small business/self-employees you can connect with etax1099.com

  

Trump's New Tax Plan and Tax Cuttings in 2017 - How it Effects You

Posted by Admin on 3. June 2017 10:58

President Donald Trump’s campaign tax proposal has got some additional details with Treasury Secretary Steven Mnuchin and National Economic Council Director Gary updates in April 2017 which is listed below:


  • Recently updated tax proposal eliminates all the itemized and regular deductions (like home office deductions, state and local) which are the part of current tax code excluding the mortgage interest and charitable deductions.
  • The standard deduction will be twice to the offset the elimination of any other deductions and aims to simplify the tax filing process and usage of itemized deductions.
  • Revoking the Alternative Minimum Tax (AMT), 3.8% health care investment tax obligatory under Obama care and estate tax.
  • Trump’s tax plan additionally has 3 tax rate brackets, but there is a change in the level that differs from the prior proposal. It will be 10%, 25%, and 35%, hence the top tax bracket rate of 39.6% will be eliminated.
  • On the first $13,000/ $ 24,000 of income, there will be no taxes for single or married standard deduction.
  • The tax plan also includes tax relief for families with child care expenses.
  • Corporate rate will further come down to 15% and can expect a repatriation tax on funds for the companies that hold overseas.
  • It is assumed that the higher economic growth will offset the lower tax revenues. But the details are spelled out for the next year as the tax reform package is worked by Congress.

 

When you go through the above tax plan, it seems to have tax breaks for the rich people, but the controller of administration says that the changes in the tax plan would surely benefit the middle-class people.

 3 most attractive features that you can see in this Trump’s plan could be:

1.    1. Reduced corporate tax rate by 15% which is an expensive proposal.
2. Pass through provision will make any professionals to set up their legal tax-shelter.
3. Changes to the individual tax code

Assuming that the tax plans will get passed by the Congress, but most of the tax changes which are brought by President Trump will go effectively from 2018 as the tax plan for the 2017 year has been established already.  On the other hand, the houses of Republicans also have come up with a tax plan in order to cut personal and corporate taxes. But when compared with the proposed tax plan of the President, this is not found to be aggressive.

To get the proposed tax form across all the branches of the government, tax plan agreement must be compromised. This is because the President’s administration has not laid any actual plan to pay for the tax cuts and also there are no proposed net spending reductions to offset of Trump’s tax plan of $7 trillion cost.

According to the sources and when checking the proposed tax plan of President Trump, the tax plan will be more advantage for the middle-class people as they could find modest tax savings. On the other hand, the premium class taxpayers can see most in savings by lowering the highest marginal tax rate, increase in tax reduction and a repeat of the Alternative Minimum Tax.

On the whole, this proposed tax plan might increase the deficit by $10 trillion after 10 years. But reconciliation rules mention that law cannot increase the deficit over a decade by a single dollar. In short, middle-level tax-payers can foresee good tax savings whereas the high-income earners will be taxed heavily.

Complete PDF about TRUMPS PLAN

Stay tuned with etax1099 to get the updates of Tax Reform That Will Make America Great Again! And don’t forget: you can now e-file your quarterly business taxes on Forms 1099  with ETAX1099.com

 

 

 

March 31st - IRS 1099 Forms Deadline and Due Dates for 2016 Tax Year

Posted by Admin on 31. March 2017 02:25

Form 1099 is series of 23 documents; the IRS refers as information returns about income. We have different types of 1099 forms (1099-MISC, 1099-K, 1099-INT and etc) that reports the various type of incomes during the year. The due date for 1099s forms is March 31st, 2017. 


IRS 1099-MISC Form

1099-MISC reports all the miscellaneous income transactions, the total amount you received through the payments from a single person for your services over the year.  

1099-MISC Deadline and Due Dates

  • Recipient copy by January 31, 2017
  • IRS Paper Filing - Box 7 by January 31, 2017
  • IRS Electronic Filing – Box 7 by January 31, 2017
  • IRS Paper Filing – Other Boxes by February 28, 2017
  • IRS Electronic Filing – Other Boxes by March 31, 2017

IRS 1099-INT Form

1099-INT form reports all interest income from banks, financial institutions, government agency, and brokerages. You may have to report income tax on interests of these received payments. 

1099-INT Deadline and Due Dates

  • Recipient copy by January 31, 2017
  • IRS Paper Filing by February 28, 2017
  • IRS Electronic Filing by March 31, 2017

IRS 1099-K Form

1099 K form is used for reporting some payment transactions (debit, credit, third-party payment network transactions) for improving voluntary tax compliance. 

1099-K Deadline and Due Dates

  • Recipient Copy by January 31, 2017
  • IRS Paper Filing by February 28, 2017
  • IRS Electronic Filing by March 31, 2017
Today Efile your 1099s or ACA forms with IRS and avoid late fee or penalties. 

What are the Due Dates for 1099 Forms in 2016 Tax Year

Posted by Admin on 30. March 2017 03:48

Prior to knowing the due dates for 1099 forms 2016 to 2017, it is necessary to know what are IRS 1099 forms especially the ones being described here- Forms 1099-MISC, 1099-K and 1099-INT. 

1099 Deadline: 1099 Filing and Submitting Due Dates

March 31st, 2017 is 1099 due date for filing 1099 forms electronically. 1099 MISC due date is on or before 31st January 2017 when reporting nonemployee payments in Box 7. If the deadline for 1099 form filing falls on Saturday, Sunday or any legal holiday, it might be filed on the following business day. This due date applies to all 1099 forms including 1099-K form and 1099-INT form. It is necessary for you to keep in mind that in order to e-file form 1099-MISC or any other 1099 form it is important for you to have the software for generating a file as per specifications in Publication 1220.

1099 filing deadline

 

What is 1099-MISC Form?

The 1099-MISC form is frequently used by companies for reporting payments to vendors providing them their services. The form contains a total of 10 boxes for reporting different amounts paid to the vendors. However, companies made use of Box 7 for nonemployee compensation. The 1099-misc form is basically used for the purpose of reporting payments to small service companies and self-employed individuals. Examples of such companies and individuals include cleaning services, graphic designers, grass cutting services, freelance writers, forum moderators, web developers and other service providers. The 1099-misc form is also used for the purpose of reporting the payments made to partnerships, attorneys, and unincorporated business service providers.

1099-MISC Deadline (1099-MISC Due Dates)

  • Recipient copy by January 31, 2017
  • IRS Paper Filing - Box 7 by January 31, 2017
  • IRS Electronic Filing – Box 7 by January 31, 2017
  • IRS Paper Filing – Other Boxes by February 28, 2017
  • IRS Electronic Filing – Other Boxes by March 31, 2017

What is 1099-INT Form?

The IRS 1099-INT form reports the interest earned from different accounts like US savings bonds, interest-bearing checking accounts, and savings. 1099-INT form identified the difference between dividends and interest, which are directly reported on 1099-DIV form. The recipients who do not qualify to get a form have the obligation of reporting their income as per regulations by the Internal Revenue Service.

1099-INT Deadline (1099-INT Due Dates)

  • Recipient copy by January 31, 2017
  • IRS Paper Filing by February 28, 2017
  • IRS Electronic Filing by March 31, 2017

What is 1099-K Form?

The 1099-k form is filed by PSEs or Payment Settlement Entities for the payments which are made during the settlement of a payment transaction that is reportable. These payments include the ones made by way of payment cards like debit, credit and even gift cards or cards through third party network.

1099-K Deadline (1099-K Due Dates)

  • Recipient Copy by January 31, 2017
  • IRS Paper Filing by February 28, 2017
  • IRS Electronic Filing by March 31, 2017

Two Crucial Dates for Issuing Form 1099-MISC

There are two crucial dates for issuing form 1099-MISC and it is very important to remember both the dates. One date is for mailing form 1099-MISC to the recipient and the other date is for reporting it to the Internal Revenue Service. Both these dates are of prime importance failing which there are strict penalties. There is one thing that can be done to keep the dates in mind and that is using an online tax filing service for the entire procedure. Today Efile your 1099 Forms and Avoid Penalities. 

How to Avoid Major Mistakes When Filing 1099 Form Online

Posted by Admin on 16. March 2017 03:45

It is quite common to make mistakes in the 1099 filing procedure. There are many mistakes that the filers are found making in common when they choose to efile 1099. Here, you will come across some mistakes in the 1099 form filing procedure. All recognized characteristics have properly been removed for protecting the filers. 

How to Avoid Top 8 Mistakes in 1099 Filing Process 

Here we provided common mistake when you are efiling 1099 form online.

1. Wrong Way of Filing the Corrected Form

This is one important mistake that should be taken care of when filing form 1099 online. When filing corrected form 1099, make sure to check the box that has been marked “CORRECTED” right at the top of the form. This mistake is being pointed out here because it is quite easy to miss checking the box.

2. Typos in Name and TIN

The IRS checks the name and the TIN against its database. When the IRS finds that the information provided on the 1099 form is not matching its records, it does not switch characters around or try several combinations of making a match. The IRS issues a CP2100A or CP2100 resulting in the penalty up to $230 for the tax year. However, the IRS is well aware of honest mistakes and offers some method to the filers for contesting penalties and providing information correctly. Still, it is necessary for you to double check the name and the TIN.

3. Which Box is Correct?

When carrying out 1099 electronic filing it is necessary to know which box is right and which is wrong. Therefore, it is very important for you to take the services of an accountant who might be of good help. This is because most of the times it happens that people do not have relationships with the recipients who got the payments.

4. Your State might require 1099 Online Filing

Depending on the State where you live, your State might have 1099 filing requirement. There are States that take information off from the federal form by way of Combined Federal State Filing Program. The states that take the SF/CF information might require separate 1099 filing in the case of withholding. Other states might need separate filing like sending in CD-ROM, e-filing or paper filing. Therefore, it is important for you to check with the state that you live in if you do not have any idea about the 1099 file online procedure. However, the requirement should not be ignored.

5. Are you the Payer?

The taxpayer is one who makes payment and the recipient or payee is one who receives payment. Form 1099-MISC has separate columns for both. Getting them backward means having to fix them eventually with the Corrected form.

6. Missing 1099 Deadline

Remember, there is a due date for form 1099-MISC but this does not mean that you must rush with the filing procedure. Planning is very important. March 31st is the due date for 1099 forms and now plan accordingly.

7. Avoid Attempted Fraud

Any kind of unnoticed attempted fraud should be avoided as this is a mistake that the Internal Revenue Service will take steps over.

8. Slow Down

Take a good time in filing form 1099-MISC. Try to complete all the important steps by providing correct information.

IRS Form 1099-MISC Instructions for Recipients in 2016

Posted by Admin on 8. February 2017 03:38

The 1099-misc form is used for reporting specific payment types made in business or trade. If you are self-employed or in business, you might have to submit form 1099-MISC to both the business or the person you are making payments to and to the IRS. You can even submit form 1099 online. If you are a businessman or an individual making payments to others then it is necessary for you to remain aware of 1099-MISC instructions. IRS form 1099-MISC instructions will help you in completing and submitting Form 1099 in the best way possible without making any mistakes.

When is Form 1099-MISC Needed?

Trading companies and business will have to fill out a 1099-MISC form for independent contractors, individuals and subcontractors and others in circumstances where:

Payment of $600 or more is made for:

·         Crop insurance proceedings

·         Cash payments to fishermen

·         Proceed payments made to lawyers

·         Health and medical care payments

·         Awards and prizes

·         Services like materials and parts

·         Rents and various other payments type not covered under any other document that reports all sorts of financial information.

Payment of $10 or more is made for:

·                       ·    Royalties, and

·                       ·    Broker payments in lieu of tax-exempt interest or dividends

Such payments need to be reported if the individuals receiving these payments are not corporations. In other words, these payments should be reported if the recipients are partnerships, individuals or limited liability companies treated as sole proprietorships or partnerships. Other different payment types made to corporations need to be reported by making use of Form 1099-MISC.

Form 1099-MISC Instructions- Steps for Preparing Form 1099-MISC

It is necessary for you to request that your contractors, vendors and other recipients of payments submit Form W-9 to you. Form W-9 is important because it will give you the legal address, name and the taxpayer identification number of the vendor. This information is of great importance because it is needed when preparing 1099-MISC form. Further in the form 1099-MISC instructions category, it is necessary for you to keep a track of all the payments that you make in a bookkeeping system. It is important that you know whether the payments fall under the categories that have been listed above. It is also necessary that you know whether the payments that you make to recipients reach the $600 or the $10 threshold. Finally, you must also have an idea about the specific amount that you pay to a recipient during a calendar year.

1099-MISC Deadline and Penalties for Late Filing

 

You must provide the payment recipient with a copy of Form 1099-MISC by February 1, 2017. The payments should be reported for the 2016 tax year. The IRS should receive Form 1099-MISC by February 28, 2017. You also have the option of filing Form 1099-MISC electronically by March 31, 2017. A 30-day extension for filing 1099 forms with the IRS can be requested by businesses. They can request the extension and file their 1099s using 8809 Form. It is to be noted that an extension should not be treated as the permission to use additional time for providing a recipient with form 1099.

If you are unable to follow the form 1099-MISC instructions properly, you are likely to make mistakes and even fall prey to the penalties of late filing form 1099-MISC. The penalties are as follows:

  • $60 penalty for late payment of form 1099 by 30 days and prior to 1st August.
  • $30 penalty for late payment of form 1099 by 30 days
  • $100 penalty for filing 1099 on or after 1st August.
  • $250 penalty for international filing failure.

When is Form 1099-MISC Due? Who do I send it to?

Posted by Admin on 31. January 2017 06:34

Every business needs some kind of help. Businessmen generally hire people for different operations. For example, graphic designers are hired for creating logos for the business and customer service agents are hired for dealing with the sales. If these individuals are used in the form of contractors, they should be given form 1099-MISC. IRS 1099 MISC form is used by the IRS for businesses to report the payments that they make to people who are not employees but who have been paid in exchange for their services. 


When is 1099 MISC Form Issued?

1099 MISC form is issued to someone in following situations:

  • The contractor is paid $600 or more in 2016 tax year.
  • Minimum $10 is paid in broker payments or royalties in lieu of tax-exempt interest or dividends.
  • $600 or more is paid for services, rents, awards and prizes, health care and medical payments, other income payments, cash payments and payments made for the national principal contract to estates, individuals or partnerships.
  • $600 or more is paid to a lawyer

IRS 1099 MISC is also used for reporting direct sales of minimum $5,000 of different consumer products to buyers for resale anywhere excluding permanent retail establishments. In addition to this, you will have to file form 1099-MISC for every individual from whom you have withheld some kind of federal tax income under backup withholding regulations irrespective of the amount you have paid.

10999 MISC Filing Due Date 2016 tax year

The 1099 MISC should be in the hands of the recipients by 31st January 2017. Nevertheless, if any substitute payments have been made in lieu of any proceeds or dividends to a lawyer, you have time till 15th February 2017 for getting the 1099 forms in the hands of the recipients. An important factor to consider in this circumstance is the mailing time. In case you are filing form 1099-MISC manually and you find no data in Box 7, you have time until 28th February 2017 for getting Copy A to the IRS. You have got time till 31st march, 2017 for getting Copy A to the Internal Revenue Service if you are filing form 1099-MISC electronically and you do not find any data in Box 7. In all circumstances, it is necessary for you to have the correct idea about 1099 MISC deadline. The 1099 MISC filing deadline is important in order to avoid penalties.

Who do I Send Form 1099-MISC? 

As per 1099-MISC instructions, you need to issue the form 1099-MISC to every individual who has received a payment of minimum $600 in services, rents, awards, prizes and other income payments. There is no need to e-file 1099 for personal uses. 1099 online filing is one of the best options that you can go for.

What Happens if You Forget to E-File a 1099 Tax Form

Posted by Admin on 27. January 2017 02:55

It is necessary for you to get form 1099 if you receive money from a government or business entity during the year which is reportable on your taxes. File 1099 online by taking the services of various online filing service providers. However, prior to considering to e-file 1099 make sure that you have a basic understanding of the form. It is in no ways a tax document but an informational form that needs to be filled out by an individual if he or she receives money during the year of reportable taxes. There are different varieties of 1099 forms and 1099 reporting to the IRS is very important. This is because with this kind of reporting the government is informed about the income you have even if you do not mention it in the tax return. However, if the IRS discovers that you have not reported additional taxes owed in the form, it will send notifications and charge penalties along with interest beginning right from the first day of the late tax payment.

Penalties for Not Filing a 1099 forms

The types of 1099 forms you may receive are as follows:

 

·         Form 1099-INT; informs the IRS about payers of interest income.

·         Form 1099-K; an IRS reports the payment card and third party network transactions.

·         Form 1099-MISC; reports payments to independent contractors. 

 

Efile your 1099 forms without penalties and late filing fee by January 31, 2017, for 2016 tax season.

 

Failure to E-File on Due Dates

The IRS will penalize companies for not filing 1099s before due date and for incorrect 1099s forms. Companies/Individuals should issue all 1099 forms including 1099-MISC forms by January 31 for the previous tax year. IRS 1099-K and 1099-INT forms are must issue by January 10. If filing by paper, businesses must file these 1099 forms with the IRS by February 28. If filing electronically, companies must e-file the 1099s with the IRS by March 31.

Penalty for Making Late Payments

There is a definite penalty for not filing 1099 and even for making late payments. You can always expect the Internal revenue Service to impose a penalty for late filing 1099. This penalty is around 0.5% per month or partial month during which the taxes remain unpaid. The penalty is generally capped at 25%. In case 1099 earning that you complete forget to mention on your tax return gives way to an understatement of the tax bill, the penalty for 1099 late filing increases to 20% accruing immediately. Therefore, if you are looking to avoid a penalty for not filing 1099-MISC then it is necessary for you to amend your tax returns. Make sure to go through the form carefully and include all taxes owed.