Informational Form Submission & Services 1099-MISC, 1099-INT, 1098

(others available upon request)

2016 Informational Forms Are Due to Their Recipients by January 31, 2017

Important Deadline Change: new for 2016 tax year reporting, the IRS is requiring that all 1099-Misc, Box 7 data (non-employee compensation) be transmitted to the IRS by the same due date as the recipient copies - January 31, 2017. All other informational return deadlines remain unchanged. (Electronic filers previously had until March 31st.)

1099 and 1098 Forms are electronically filed to the IRS by our office. Our service includes all filing, postage and handling to the IRS and your payees. Your file copy is securely delivered to you electronically, unless otherwise requested. For information regarding pricing, please call our office.

An additional Taxpayer Identification Matching Service is available upon request. The IRS has increased penalties for 1099 noncompliance. Part of your responsibility is to obtain and maintain the necessary information from your vendors, contractors and service providers in order to properly issue 1099 Forms. To avoid reporting issues, the Name and federal ID provided by the payee should be verified with the IRS via E Services. If you are not an established IRS E Services user, our office can run a TIN Name Match for you now or anytime throughout the year. Submit your payee records by fax (419-872-2338) or email directly to Arlena. Forms should be submitted no later than midnight January 29, 2017, to allow for sufficient time to process your request by the deadline.

Required Information To Include in Your Submission:

1. Payer Information

  • a. Business Name
  • b. TIN
  • c. Address
  • d. Contact Name and Phone Number

2. For each eligible recipient (payee):

  • a. Payee Name and current mailing address
  • b. Payee Taxpayer Identification Number (SSN or EIN)
  • c. Total amount paid to that payee in 2016
  • d. Payment type (1099-MISC, -INT, -Other, 1098 Mortgage Interest, etc.)
  • e. Indicate for each payee if you wish to add TIN matching service.*

3. If your subcontract labors or service providers perform their services for you in locations other than where your main office is located, you will also need to provide a breakdown of payments by work location to comply with local municipality reporting requirements.

We will accept your printed reports, as long as all required payer and payee information is present. Or, use our submission form by clicking on the link above.

What You Should Know About Your Responsibility for Filing 1099 and 1098 Forms with the IRS

Type What to Report Requirement to File
1099-Miscellaneous Rent or royalty payments your business paid to others, prizes and awards for services, such as winnings on a TV or radio show
Payments for services performed for a trade or business by people not treated as its employees. Examples: subcontracted labor, directors.
Payments paid to an attorney for services provided to your business
$600 or more (required if recipient is not Incorporated)
$600 or more (required if recipient is not Incorporated)
$600 or more (regardless of entity classification)
1099-Interest Interest income you recieved on loans. $10 or more
1098 Mortgage Interest you received in the course of your trade or business from individuals and reimbursements of overpaid interest. $600 or more

THE IRS HAS AN EXPECTATION THAT YOU EXCERCISE YOUR DUE DILIGENCE: The IRS requires you to obtain the information from your payees as soon as the payee has a reportable payment. You can us the IRS Form W-9 Form or alternative method. We would encourage you to use the W9 form as the payee is certifying on a federal document that they information provided is accurate.

Backup Withholding and Withholding Payments Requirements. Reportable payments to payees are subject to immediate backup withholding of 28% on all reportable payments when the payee has NOT provided you with a TIN, or has provided you with an obviously incorrect TIN. Backup withholding is also required to begin immediately if you receive a notice from the IRS directing you to do so. Backup withholding is submitted to the IRS similarly to payroll liabilities and reconciled annually using Form 945. It is important to note that if you fail to backup withhold and were required, the IRS can hold you, the payer, liable for all of the tax that should have been withheld but was not.

Penalties for Non Compliance. The IRS has significantly increased penalties for late filing and non-compliance of information returns. 1099 non compliance penalties are assessed on a per payee basis. Be aware that the IRS also levies penalties on both sides of the compliance: 1) failure to file with the IRS, and 2) failure to furnish to the payee. The two sided penalty can result in a total penalty of up to $520 per payee. Further penalties can be levied on the payer if it is determine there was a willful disregard to file 1099 forms. The potential costs for non compliance add up quickly and could be catastrophic to a small business. [Schedule of Penalties]

Our office strongly suggests that you establish a policy for your business outlining the process to obtain and maintain the necessary information from contractors and services providers or other eligible 1099 recipients, if applicable. If you have any questions, concerns or need assistance to implement a 1099 Compliance Policy in your business, please call our office at (419) 872-2221 or email Christina.