Businesses have less than 30 days to file Forms 1099-Misc with the IRS and recipients. The due date is Wednesday, January 31st. Penalties for late or not filing are $520 per recipient. Not all payments to vendors are reportable to the IRS such as payments that are less than $600 per recipient and amounts paid to some corporations. Amounts paid to partnerships and limited liability companies are reportable to the IRS.
The maximum penalty amount is $3,218,500 or $1,072,500 if your company meets certain criteria. Yes, that’s right, $3 million or $1 million. These numbers are not typos!
We are currently contacting our business clients to gather information to comply with this filing requirement. Please send me an email or call us at (323) 285-9880 if we can be of assistance to you.
David A. Paddock, CPA, M. TAX.