Form 1099 Filing Information

While 2016 brought no significant changes to 1099 filing requirements (except due dates noted below), it is important that employers review and understand the existing compliance procedures.  Not only will you face steep penalties for non-compliance, you will also be required to provide details about the 1099s on your business tax return.

Below are general guidelines to assist you in preparing and filing 1099s for 2016.

1099 reporting is required on a calendar-year basis and includes the payee’s name, address, social security or employer identification number, as well as the amount paid and any related federal income tax withheld.

Form W-9 – In order to obtain the social security number or employer identification number from a vendor, use the Form W-9 (Request for Taxpayer Identification Number and Certification) with a revision date of December, 2014.  This form meets IRS requirements while the earlier versions do not.

Form 1096 – This is a summary and transmittal form required to accompany the separate information returns when they are sent to the Internal Revenue Service.  A separate 1096 is required for each type of 1099 return sent.  Additional information and instructions can be found on the Forms & Publications page of the IRS website.

Form 1099-MISC – This form must be filed by a payer who, in the course of conducting a trade or business, makes payments during the calendar year totaling $600 ($10 in the case of royalties) or more to any payee for a service.  The most common types of payments reflected on this form are rents, royalties, health and medical services (including veterinarians), payments to non-employees, attorneys’ fees and gross proceeds to attorneys.  This form is only required to be sent to non-corporations with the exception of attorneys who should receive the form for all payments made to the attorney.  In addition, payments for medical or health services (even if paid to a corporation) must be reported. Make sure to use the proper box for the various types of payments reported on this form.

1099-R – This form reflects distributions from pensions, annuities, IRAs, etc. Both distributions made to individuals and those made directly to IRAs or other qualified plans are required to be reported.

1099-DIV – All dividends of $10 or more are reported on this form.  For distributions from S corporations, only those dividends paid out of accumulated earnings and profits should be reported.

1099-INT – Interest payments of $10 or more are reported on this form.  Interest payments to corporations are not required to be reported.

Due Dates (New for 2016 Filings)

Keep in mind that the 1099s must be submitted to the recipient by January 31, 2017.  Generally the Form 1096 accompanied by the Forms 1099 must be submitted to the Department of the Treasury by February 28, 2017.  The Form 1099-MISC (if an amount is included in box 7, nonemployee compensation), along with the 1096 are due to the IRS by January 31, 2017.

Electronic Filing – If your company is filing more than 250 forms of the same type, they are required to be filed electronically.

For further information, please contact Alan S. Isaacs, CPA, MBA at [email protected].

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