It is the beginning of a new year and Jagg Tax Solution, Inc. and Gustavo Nunez – EA wishes all the truck drivers and their families a year full of happiness, successes and that all their goals, both economic and family, are fulfilled. Certainly the beginning of the year requires that we draw up deadlines, goals, plans and projects in which we must work and strive to be successful. To avoid any contra-time in these projects it is necessary to avoid being victims of fines for breaking the tax law.
Here, I will explain to all those who need to report Forms 1099-Misc what they should know about the payments they made to individuals or independent contractors who worked for them. According to the Internal Revenue Service: “Effective with returns due after January 1, 2016, penalties for not filing correct information returns and/or not furnishing correct payee statements have increased and are now subject to inflationary adjustments.”
The amount of the fine is based on the time you file the correct information statement or when you file the correct beneficiary statement. The fine for not presenting a correct information statement is independent of the fine for not providing the correct declaration of the beneficiary. For example, if you do not submit the correct Form 1099-MISC to the IRS and do not provide a correct declaration of Form 1099-MISC to the beneficiary, you may be subject to two separate fines.
• If you submit the report correctly within 30 days of the deadline: $50 per form ($547,000 maximum)
• If you did it correctly after 30 days and until August 1: $100 per form ($1,641,000 maximum)
• If you file correctly after August 1: $270 per form ($3,282,500 maximum)
How can you avoid being penalized?
By sending the Copy B and Copy 2 of Form 1099-MISC to the recipient before January 31, 2019.
IMPORTANT: New filing date. Public law 114-113 requires that Form 1099-MISC be filed to the IRS no later than January 31, 2019, when reporting compensation payments from non-employees in box 7.
Form 1099-Misc, Copy A of Form 1099-MISC must be sent to the IRS before February 28, 2019.