(513) 858-6040 
Secure File Upload
Pay
Client Center
1099 Deadline is Looming
Jan 23, 2020
As the 1099 deadlines loom closer, one of the questions we are asked by entrepreneurs every year is whether or not they need to send out 1099s to their contractors.
1099 tax form should be sent by your company to independent contractors if you paid more than $600 to them in the year 2019. But as with most tax rules, it’s more complicated because not all contractors need to receive a 1099. So who meets the standard to send 1099?
- They were paid at least $600.
- They are a US citizen.
- They are an individual and not a corporation- If they are a registered business entity (partnership, S Corp, C Corp, etc) you do not need to send them 1099.
- You paid them via cash or check and not a third-party source- If you paid them via a third-party source, meaning it didn’t come directly from your bank account to them, you do not need to issue 1099. The two big third-party sources are credit cards and PayPal.
Heavy penalties for late submissions or wrong information will be imposed so it is important for employers to prepare and file the appropriate 1099s to the IRS before the 1099 deadlines.
1099 Deadlines for 2019
| Form | 1099 Due Date to Recipients | Filing to IRS By Mail | E-Filing to IRS |
| 1099-MISC (NEC Only) | January 31, 2020 | January 31, 2020 | January 31, 2020 |
| 1099-MISC (Other Forms) | January 31, 2020 | February 28, 2020 | March 31, 2020 |
| 1099-DIV | January 31, 2020 | February 28, 2020 | March 31, 2020 |
| 1099-INT | January 31, 2020 | February 28, 2020 | March 31, 2020 |
| 1099-R | January 31, 2020 | February 28, 2020 | March 31, 2020 |
Penalties for Late Filing
The penalties range from $50-$550 per missed 1099 tax form, depending on how late the forms were submitted.
| Penalty per Form | Length of Delay |
| $50 | More than 30 days late |
| $110 | More than 30 days late but before August 1st, 2020 |
| $270 | Filing on or after August 1st, 2020 |
| $550 | Intentionally neglecting to file |
There are many services that can help you file your 1099s including QBO or if you don’t have the time or you are unsure of who needs a 1099, we can help. Give us a call at 513-858-6040.
Contact us to learn more about accounting and advisory services
About The Author
As the Manager of Practice Growth, Diane focuses on the market awareness and growth of Kirsch CPA Group…
Sign Up for Email Updates
Related Articles
How Buy-Sell Agreements Factor into Business Owners’ Estate Plans
- 09-14-22
- Kirsch CPA Group
SALT Cap Workaround Law Could Save Ohio Business Owners Over $100 Million
- 08-31-22
- Kirsch CPA Group
How Manufacturing Companies Can Benefit from the Section 179 Expensing Deduction
- 08-04-22
- Kirsch CPA Group
Could the Work Opportunity Tax Credit Help Your Construction Company?
- 06-23-22
- Kirsch CPA Group
Good News: IRS Boosts Standard Mileage Rates for Second Half of 2022
- 06-23-22
- Kirsch CPA Group
Education Benefits Can Help You Recruit and Retain Smart Employees
- 05-26-22
- Kirsch CPA Group
Ensure Your Construction Accounting System Has the Right Features
- 05-12-22
- Kirsch CPA Group
John Kirsch Named to Greater Butler and Warren Counties Business Hall of Fame
- 03-25-22
- Diane Glover
Manufacturers Need to Act Soon to Take Advantage of 100% First-year Bonus Depreciation
- 03-17-22
- Kirsch CPA Group
Commission Fraud: Salespeople Getting Paid More Than They’ve Earned
- 02-04-22
- Kirsch CPA Group
Consider a New Approach to Meeting Your Business Real Estate Need
- 09-17-21
- Kirsch CPA Group
Beware: Teleworking Arrangements May Cause State Tax Withholding Issues
- 08-18-21
- Kirsch CPA Group
5 Common Construction Accounting Risks — and How to Address Them
- 07-07-21
- Kirsch CPA Group
Supreme Court Finds No Standing to Challenge a Provision of the ACA
- 06-24-21
- Kirsch CPA Group
Labor Shortage: Unlock Solutions by Evaluating Your Employment Value Proposition
- 06-09-21
- Kirsch CPA Group
Material Participation Standard is the Key to Unlocking LLC Tax Losses
- 05-27-21
- Kirsch CPA Group
Know Your Legal Obligations Under the Americans with Disabilities Act
- 05-13-21
- Kirsch CPA Group
PPP Loan Not Forgiven? There’s a Safe Harbor for Deducting Expenses
- 12-03-20
- Kirsch CPA Group
What You Need to Know About the Deferral of Payroll Tax Obligations
- 09-15-20
- Kirsch CPA Group
PPP Loan Forgiveness – Significant Borrower Friendly Changes on the Horizon
- 06-04-20
- John Kirsch
Tax Filing Deadline Remains April 15 – Payment Due Extended to July 15
- 03-19-20
- John Kirsch
Prepare to Receive a Social Security Administration No-Match Letter
- 10-15-19
- Kirsch CPA Group
IRS Announces Changes for Personal Use of Employer-Provided Vehicles
- 06-10-19
- Diane Glover
Watch Out for these Tax Issues When Planning for Your Business in 2018
- 06-26-18
- Diane Glover
What Image Does Your Organization Present to Large Contributors?
- 03-15-18
- Kirsch CPA Group
8 strategies to help you adapt to economic down turn without layoffs
- 02-24-18
- Diane Glover
Remember To Take Required Minimum Distributions at Age 70 1/2 Or Face Penalties
- 02-17-17
- Sue Schloemer
