Beware of New Filing Deadline and Requirements for W-3, W-2, Forms 1096, Forms 1099.

Filing requirements:

  1. All individuals, partnerships, LLCs, sole proprietors and trusts.

  2. The total amount paid for the year was over $600.

  3. Lawyers are required to receive a 1099 even if they are a corporation for any payment made, whether it be for services or amounts escrowed.

  4. LLCs that elected to be taxed as corporations are exempt.

  5. A fully completed W-9 should be received from every vendor. When in doubt if a vendor is a corporation, get one.

  6. A SMLLC should have the owner's name and ID # on the form. The SMLLC's name is reported below the owner's name.

  7. Sole proprietors should be in the owner's name and SS# with the DBA below the owner's name.

  8. Forms are due to recipients by January 31st.

  9. Forms are due to the IRS by January 31st. New this Year. It was previously February 28th.

  10. Penalty for not filing forms is:

  11. $50 per 1099 if filed within 30 days of the due date. Max. penalty is $532,000, for small businesses it is $186,000.

  12. $100 per 1099 if filed after 30 days of the due date but before August 1st. Max. penalty is $1,596,500, for small businesses it is $532,000.

  13. $260 per 1099 if filed after August 1st or not at all. Max. penalty is $3,193,000, for small businesses it is $1,064,000.

  14. A small business has an average of $5,000,000 in gross receipts for the 3 most recent tax years.

The 1099s must be e-filed with the IRS if you are filing 250 or more.

If you have any questions or need our assistance, please contact your Castellano, Korenberg & Co. tax professional.


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