As you may know, yesterday was the deadline for e-filing the Form 1099-MISC with the IRS. While this form has undergone some repurposing this year, it is still a crucial form for reporting a variety of payments. If you forgot the deadline, or just need some more time to file, the best way to avoid further IRS penalties is to get the filing process started as soon as possible!
Let’s dive into the IRS penalties that you could face for late filing or failing to file at all. We will also cover how you can file these forms quickly and accurately with TaxBandits.
Who is required to file Form 1099-MISC?
Just because this form is no longer used to report non employee compensation, doesn’t mean that it isn’t necessary for many businesses to file. There are many other situations that call for the filing of the Form 1099-MISC, according to the IRS, here are the most common:
Royalties or broker payments in lieu of dividends exceeding $10.
Awards or prizes
Medical and healthcare payments
Fishing boat proceeds
Payments made to attorneys
Crop insurance proceeds
What are the penalties for late filing of Form 1099-MISC?
Payers that do not file their 1099s on time may be subject to a penalty of $50 per form. After the 31st day, if the 1099 has still not been filed, the penalty may increase to as much as $110.
What are the penalties for failure to file Form 1099-MISC?
If the form has still not been filed after August 1st, the IRS can begin to consider that the payer has failed to file the 1099 altogether, at this point the penalty can increase to $270 per return. As you can see these penalties can really add up quickly. Be sure to file as soon as you can, even if it is after the deadline.
What other Tax Forms were Due on March 31, 2021?
In addition to the Form 1099-MISC, there are many other variations of 1099s that must be filed with the IRS, some of which include: