IRS Deadline: January 31 - Form 1099
by Tim Pass, Smith Schafer & Associates, Ltd. [email protected]
For the 2015 tax year, forms 1099 are generally required to be furnished to the recipient by January 31, 2016. A $250 penalty applies for failure to furnish a required Form 1099 to a payee AND a $250 penalty applies for failure to furnish a required Form 1099 to the IRS.
If, as a part of your business, you made any of the following types of payments, an IRS Form 1099 is required to be filed:
- Payments, in the course of your trade or business for:
- Services performed by independent contractors or others (not employees of your business)
- Prizes and awards and certain other payments
- Rent (including any self-rentals)
- Royalties (if $10 or more)
- Backup withholding or federal income tax withheld
- To physicians, physicians’ corporation or other supplier of health and medical services
- Crop insurance proceeds
- Gross proceeds of $600 or more paid to an attorney (including lawsuit settlements)
- Interest on a business debt to someone (excluding interest on an obligation issued by an individual)
- Dividends or other distributions to a company shareholder (other than S Corporation distributions)
- Distribution from a retirement or profit plan or from an IRA or insurance contract
- Payments to merchants or other entities in settlement of reportable payment transactions, that is, any payment card or third party network transaction
You are NOT required to file Forms 1099 if you are not engaged in a trade or business, you are engaged in a trade or business and the payment was made to another business that is incorporated, or the sum of all payments made to the person or unincorporated business is less than $600 for one tax year (unless the recipient is an attorney or law firm).