Beware of IRS Penalties related to Form 1099-MISC that are getting larger each year

| Alerding Alerts

Form 1099-MISC is required for payments, during the ordinary course of business for services and rent paid in the amount of $600 or more, to noncorporate payees or any payments to attorneys of $600 or more. Form 1099-INT is required for interest payments of $10 or more. If you paid Alerding CPA Group $600 or more in 2019, you have at least one 1099 to file. This requirement is for all businesses, even sole proprietors, filing Schedule C or reporting rental income Schedule E.

Exceptions – If you make payments (other than to an attorney) to an S corporation, a C corporation or an LLC taxed as a C or S corporation, you don’t need to file Form 1099. If the payments were made via credit card, then you don’t need to file Form 1099-MISC

The fees range from $50 for being 30 days late to $550 for an intentional disregard of the requirement to file Form 1099. That fee is for each Form 1099-required to be filed. The IRS has added questions on all business returns asking if you were required to file Form 1099 and if you did file or will be filing the forms.

If you would like assistance with preparing these forms, contact your Alerding CPA Group representative at (317) 569-4181.  If you are submitting the information by e-mail, please be sure to password protect the files.  For security, it would be best if you upload the information through the client portal directly to us.