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Form 1099 Reporting

For years the IRS and states have required businesses that pay rents, royalties, independent contractors and legal fees to file Forms 1099 so that the taxing authorities can monitor whether the payees are reporting the amounts in their income.

Beginning with 2011 income tax returns, the IRS asked businesses to indicate on their income tax returns if any Forms 1099 were required to be filed and if so had they been filed or would they be filed?

Until this point the taxing authorities had never specifically asked these questions on income tax returns.

There are a series of penalties that businesses can be assessed for not filing Forms 1099 if required to do so.

Business taxpayers have two options:

1. Businesses can prepare and file the Forms 1099 themselves or we can assist in their preparation so that it can be answered "yes" that Forms 1099 are required and that all Forms 1099 have been or will be filed.

2. Businesses can answer "yes" that Forms 1099 are required but they choose not to file them. This could trigger an audit or at least an inquiry by the IRS.

If you would like our assistance to prepare the Forms 1099 and 1096 for your business, please provide the legal names, addresses, amounts paid and federal tax i.d. numbers for all qualifying payees.

See for the Form 1099-MISC filing instructions for more information. If you don't already have it, you will need to have Adobe Acrobat reader on your computer to open this link. Adobe Acrobat reader can be downloaded for free at:

Beginning 2017 IRS changes W-2 & 1099 filing deadlines

In an effort to combat fraud, The Protecting Americans from Tax Hikes (PATH) Act of 2015, was passed by Congress and signed by President Obama in December 2015. The act revises the filing deadline for Form W-2 and certain types of Form 1099.

What's Changing?

Until now, employers had two dates to keep in mind when remitting W-2's:
• January 31, to provide employee copies, and
• February 28, for paper filings submitted to the Social Security Administration (March 31 for electronic filings)

Beginning with 2016 forms, employers will now have one filing deadline for all Federal W-2s, January 31. This is true for both employee and agency copies, or whether filing paper or electronic returns.

What about Form 1099-MISC? The new January 31 deadline applies to certain types of 1099s. If you're filing Form 1099-MISC and reporting amounts in Box 7: Nonemployee Compensation, then you will need to meet the new filing deadline of January 31.

If you don't have amounts in Box 7, then the deadline remains February 28 for paper filings or March 31 for electronic filings.

Impact for Employers

With this new deadline, it's important that employers be well prepared to complete year-end tasks. This means:
• Verifying accuracy of employee information
• Reporting/submitting any year-end adjustments as soon as possible
• Reviewing year-end totals for any discrepancies

If you need to make corrections after sending your file to the Social Security Administration, you can do so by filing Form W-2c, Corrected Wage and Tax Statement.

Impact on State W-2 filings
Many states have also adopted the Federal change the new deadline of January 31, beginning with the upcoming filings for 2016 Form W-2.