1099 Deadlines, Penalties & State Filing Requirements for 2018

As the end of January approaches, it is important for all the employers to prepare and issue 1099’s to the recipients, and file them with the IRS without any delay.

1099 tax form, referred to as “Information Returns,” should be sent to independent contractors if you paid more than $600 to them in 2017. Since there are many types of 1099 forms, the common forms are 1099-MISC, 1099-INT, 1099-S, 1099-C, 1099 B, 1099-R and 1099-DIV.

It’s important for the employers to prepare and file the appropriate 1099’s to the IRS before deadline otherwise heavy penalties for late submissions or wrong information will be imposed. The following table will help you to remember all the dates for sending tax forms to the contractors and for paper filing or e-filing them with the IRS.

 

1099 Deadlines for 2018

Penalties for Late Filing

The penalties range from $50-$530 per missed 1099 tax form, depending on how late the forms were submitted.

 

The maximum penalty is a total of $1,064,000* for small businesses. In all cases, the IRS considers you to be a small business if you’ve earned an average of $5 million or less in annual revenue for the past three tax years.

 

 

New State Filing Requirements

Combined State/Federal Program for 1099-series

Alabama, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Georgia, Hawaii, Idaho, Indiana, Kansas, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, New Jersey, New Mexico, North Carolina, North Dakota, Ohio, South Carolina, Vermont, Virginia, Wisconsin.

States with no 1099-MISC filing requirement:

Alaska, Florida, Illinois, Nevada, New Hampshire, North Carolina, New York, South Dakota, Tennessee, Texas, Washington, Wyoming

States that require 1099-MISC filing, if you withheld:

Kentucky, Rhode Island, Utah, West Virginia

States that require a separate 1099-MISC filing or are unclear on their filing requirements:

Iowa, Massachusetts, Oklahoma, Oregon, Pennsylvania, Washington DC

We hope you will be feeling prepared, informed, and ready to file your 1099’s. If you would like a professional to do them for your then our 1099’s Made Easy package is ideal for you. Book your consultation below:

If you have any questions about the 1099 filing, you can reach us at any time. We’d be happy to help you out.

 

Juanita is the owner of Elite Financial Management, an Atlanta, GA based accounting firm focused on providing small and mid-sized businesses with day-to-day accounting, bookkeeping, and business solutions. Juanita loves working with small businesses and entrepreneurs. When she’s not crunching numbers, she can be found reading, cooking, and hanging out with her family.

 

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