1099 Deadlines, Penalties & State Filing Requirements for 2017

1099 Deadlines

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

1099 tax form, referred to as “Information Returns,” should be send by the company to the independent contractors if it paid more than $600 to them in 2016. 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 1099s 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 2017

Form Due to Recipient Filing to IRS By Mail E-filing to IRS
1099-MISC Jan 31, 2017 February 28, 2017 Mar 31, 2017
1099-B
1099-S
1099-MISC boxes 8 or 14
Feb 16, 2017 February 28, 2017 Mar 31, 2017

1099 deadines

Penalties for Late Filing

The penalties range from $50-$530 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
$100 More than 30 days late but before August 1st, 2017
$260 Filing on or after August 1st, 2017
$530 Intentionally neglecting to file

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 1099s. CheckMark’s 1099 tax software will help you in filing 1099s just like a breeze.  You can have 1099 Print or 1099 E-file version depending on your requirement i.e. if you are filing 250 or more information returns for the calendar year, then e-fling is a must. Else, you can paper file and mail to IRS for less than 250 information returns.

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

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