BOSS

SIGN UP NOW
to receive BOSS news updates
Your info is safe with us. Please keep reading.
CONTACT US (619) 363-3009
  • COMPANY
    • About Us
    • Our Team
    • Testimonials
    • The Ultimate Guide to Startup Success
  • Accounting & Bookkeeping Services
    • Bookkeeping
    • Full Service Accounting
    • Financial Statements & Analytics
    • Audit Preparation
    • Tax Preparation
  • ACCOUNTING SYSTEMS SUPPORT
    • QuickBooks Training/Support
    • Quicken Support
    • QuickBooks Setup and Maintenance
    • Other Accounting Systems
  • OPERATIONS SUPPORT SERVICES
    • Strategic Planning
    • Operations Support
    • Human Resources
    • HR Outsourcing
    • Benefits Management
    • Payroll
    • Payroll Processing
    • Ad Hoc and Other Support Services
  • BLOG
  • CONTACT

1099 Reporting Requirements for Year-End

December 28, 2015

1099 Reporting Requirements for Year-End

1099 Reporting Requirements for Year-End

Timely 1099 tax reporting is an important part of completing year-end taxes. Otherwise, your business can be subject to IRS penalties ranging from a few hundred to thousands of dollars. To avoid these penalties, it helps to understand the requirements for 1099 tax reporting.

IRS 1099 instructions state that you must send a 1099-MISC form to each person you have paid $600 or more for rents, services, prizes, awards, or other types of income payments. Other 1099 MISC reporting requirements include filing a form for:

  • Fees paid to law firms
  • Forgiving an outstanding debt during the fiscal year
  • Paying dividends to investors

According to IRS form 1099 reporting requirements, you don’t need to issue 1099s for payments made for personal purposes; only for those made in the course of your trade or business. A complete list of IRS form 1099 reporting requirements can be found on the IRS website.

Filing Deadlines

Filing a 1099 form is a two-part process. Businesses must send a copy to each independent contractor no later than January 31, and a copy to the IRS no later than February 28. If you file electronically, the IRS deadline is extended to March 31. Keep in mind that, depending on state law, you may also have to file a 1099 with your state. To determine whether this rule applies to your business, check with your state’s tax board website.

Gather W-9 Information Before Filing Deadlines

To meet 1099 tax reporting deadlines, it helps to have each vendor’s information on file before the end of the year. If you expect to pay a vendor more than $600 through the course of the fiscal year, have them complete a W-9 form and return it to you before you pay them. That way, you will have the vendor’s mailing information and tax ID number on hand at filing time.

Avoiding 1099 Penalties

Filing 1099 forms after IRS deadlines can result in fines ranging from $30 to $100 per form, with a maximum penalty of $1.5 million for each business. The severity of the fine depends on how long after the deadline you file, so don’t delay this important year-end procedure.

That’s where a trusted outsourced accounting firm like BOSS can help. As part of our comprehensive tax preparation services, we can work with your existing tax team to ensure all schedules and information are provided in a format they can understand and utilize to accurately prepare and file your applicable tax returns in a timely manner.

Filed Under: Tax Preparation and Information

CONTACT US TODAY FOR A FREE, NO OBLIGATION CONSULTATION
  • This field is for validation purposes and should be left unchanged.

Categories

  • Accounting
  • Bookkeeping
  • Employee Tips
  • Human Resources
  • Small Business
  • Tax Preparation and Information

ACCOUNTING/ BOOKKEEPING SERVICES

Bookkeeping
Full Service Accounting
Financial Statements & Analytics
Audit Preparation
Tax Preparation

ACCOUNTING SYSTEMS SUPPORT

QuickBooks Training/Support
QuickBooks Setup and Maintenance
Other Accounting Systems

OPERATIONS SUPPORT SERVICES

Strategic Planning
Operations Support
Human Resources
Payroll
Ad Hoc and Other Support Services How to Start Your Own Business

Blog

  • How to Reduce Workers Compensation Claims
  • Is It Time to Hire a Professional to Prepare Your Books and Tax Return?
  • 1099 Reporting Requirements for Year-End

COMPANY

About Boss
Our Team
Testimonials

CONTACT

Back Office Support Solutions
Tel: (619) 363-3009
1551 Union St. #1105
San Diego CA, 92101
By: Michelle Devereux
© Back Office Support Solutions LLC, 2025. All rights reserved. Privacy Policy Sitemap
Developed by: TinyFrog