File this form for each person to whom you have paid during the year:
- at least $10 in royalties or broker payments in lieu of dividends or tax-exempt interest;
- at least $600 in:
- services performed by someone who is not your employee;
- prizes and awards;
- other income payments;
- medical and health care payments;
- crop insurance proceeds;
- cash payments for fish (or other aquatic life) you purchase from anyone engaged in the trade or business of catching fish;
- generally, the cash paid from a notional principal contract to an individual, partnership, or estate;
- payments to an attorney; or
- any fishing boat proceeds,
In addition, use this form to report that you made direct sales of at least $5,000 of consumer products to a buyer for resale anywhere other than a permanent retail establishment.
Form 1099MISC for an independent contractor if the total payments for the year are $600 or more. The date to provide W2s and 1099s to employees and independent contractors hasn’t changed and remains January 31.
Penalties for failure to file correct information returns and/or to furnish correct payee statements have increased and are now subject to inflationary adjustments. Information returns and payee statements include, for example, Forms 1098, 1099, W-2G and W-2.
Per Section 208 of Public Law (P.L.) 113-295, effective for information returns required to be filed in a calendar year beginning after 2014, the base penalty rates and maximum penalties are subject to annual inflationary increases. Section 806 of P.L. 114-27 increased the base penalties for failure to file correct information returns and provide correct payee statements for returns required to be filed after December 31, 2015.
Employers must send Copy A of Form(s) 1098, 1099, W-2G and other information returns to the Internal Revenue Service with transmittal Form 1096 by the last day of February of the following year if filing by paper, March 31 if filing electronically. Copy A of Form(s) W-2 must be sent to the Social Security Administration with transmittal Form W-3 by the last day of February of the following year if filing by paper, March 31 if filing electronically. In addition, employers filing 250 or more information returns must file electronically unless granted a waiver by the IRS.
Penalties for Failure to File Correct Information Returns (Code Section 6721) may apply if you:
- don’t file a correct information return by the due date and a reasonable cause is not shown,
- file on paper when you were required to file electronically,
- fail to report a Taxpayer Identification Number (TIN),
- report an incorrect TIN, or
- fail to file paper forms that are machine readable.
Penalties for Failure to Furnish Correct Payee Statements (Code Section 6722) may apply if:
- you don’t provide a correct payee statement by the applicable date and a reasonable cause isn’t shown,
- all required information isn’t shown on the statement, or
- incorrect information is included on the statement.
The amount of the penalty is based on when you file the correct information return or furnish the correct payee statement. A penalty for failure to file a correct information return is separate from the penalty for failure to furnish the correct payee statement. For example, if you fail to file a correct Form 1099-MISC with the IRS and don’t provide a correct Form 1099-MISC statement to the payee, you may be subject to two separate penalties.
If you have any question: 772 380 0610