1099 Reporting Requirements for Tax Year 2017

Form 1099 Filings

Dear Client:

The IRS has become stricter with 1099 information reporting and filings by assessing harsher penalties. The penalties associated with missing the deadline or not filing 1099s can range from $30 to $100 per form, with a maximum fine of $500,000 per year. If the IRS determines there is intentional disregard of the requirements, the penalty can reach as high as $250 per form, with no maximum.

For the 2017 calendar year, Form 1099-MISC are due to be provided to recipients by January 31, 2018. Form 1099-MISC must also be filed with the IRS (and states, if applicable) by January 31, 2018.

Other 1099 series forms are generally due to the Recipient by January 31, 2018 and to the IRS by February 28, 2018 if paper filing, and by April 2, 2018 if electronic filing.

If you are submitting 250 or more 1099 forms, you must file electronically.

IRS Form 1099-MISC summarizes payments made to unincorporated businesses and individuals and to all lawyers and law firms regardless of type of entity. You must send out a Form 1099-MISC if your business paid $600 or more during the year to such businesses or individuals; this includes any partnerships or Limited Liability Companies you may have contracted throughout the year. If you have not obtained a Form W-9 from your vendors indicating the type of entity they are, you should assume if the name of the business does not include “Inc., Incorporated or Corporation” in its name, it is an unincorporated business, and a Form 1099-Misc would be required. Continue reading

RotenbergMeril Tax Alert – December 2017

2017 Tax Reform: Client Letter on last-minute year-end moves in light of Tax Cuts and Jobs Act

Dear Client:

Congress is enacting the biggest tax reform law in thirty years, one that will make fundamental changes in the way you, your family and your business calculate your federal income tax bill, and the amount of federal tax you will pay. Since most of the changes will go into effect next year, there’s still a narrow window of time before year-end to soften or avoid the impact of crackdowns and to best position yourself for the tax breaks that may be heading your way. Here’s a quick rundown of last-minute moves you should think about making.

Lower tax rates coming. The Tax Cuts and Jobs Act will reduce tax rates for many taxpayers, effective for the 2018 tax year. Additionally, many businesses, including those operated as passthroughs, such as partnerships, may see their tax bills cut. Continue reading