What if 1099s are late

Penalties for not providing correct payee statements Code Section may apply if:. Also, the requirement to furnish Form S to the recipient of the income remains due March Public Law P. More In File. If you missed my post a couple of weeks ago about the deadline , or if you simply fell behind and didn't get all your MISCs out the door to your vendors by the January 31st deadline, don't despair. The world is still turning and life is going to go on. It's not the end of the world, and you can still get yourself in compliance relatively easily.

Doing nothing because you think it's too late is not a good option, though. That can get you into trouble with the IRS. If you are in fact late on your s, you may be like thousands of other business owners who just have too many things going on and find it hard to keep up with all the administrative hassles of running a business.

So why not remove as many obstacles to getting this done as you can? I would highly recommend e-filing your s. There are many online sites that provide this service. Just google "e-file s" and you'll find plenty. We suggest www. E-filing your s takes away the hassles of buying paper forms, figuring out how to get them to print on your printer, stuffing envelopes, and mailing them.

It also lets you avoid having to file the related Form with the IRS copies by February 28th. You just file them once on-line and you're done. What is your time worth, and what is the opportunity cost of spending time working on s?

Most employers are used to getting W-2s out to their employees by the end of January. The independent contractors that provided you services during the year most likely need a form of their own by the end of January as well—a MISC. There are many different s, but the first most small businesses encounter is the MISC. Not everyone who does work for you is an employee.

Not sure if someone is an employee or a contractor? An independent contractor is essentially a small business—they likely have other clients, advertise their services, set their own hours, use their own tools or equipment, send invoices for their work, and may even have employees of their own. January 31 st. Mailed filings just need to be postmarked by January 31 st , not necessarily received. Form is just a transmittal form you send along with your MISCs—essentially a cover sheet.

You only need to file one with all your MISCs that report nonemployment compensation in Box 7. This helps both you and the IRS avoid having to worry about tons of separate filings.

If you have to wait for contractors to return W-9s, filing your MISCs will take substantially longer. Like all IRS filings, it depends on how prepared you are.