IRS expedites reporting deadline for Form 1099-MISC
- The IRS now requires businesses to file Form 1099-MISC by the same date they issue the form to recipients – Jan. 31 of next year, reports Forbes. Businesses reporting non-employee pay in box 7 have this new deadline for filing 2016 returns. The deadline is for both electronic and paper filing.
- Businesses used to have a few months to file Form 1099-MISC with the IRS after sending it to recipients. Businesses that don’t report in box 7 must issue the form to recipients by Jan. 31, as usual. Recipients usually receive the form in January or February. Some companies issue the form with paychecks during the year.
- Although the issue deadline is Jan. 31, businesses aren’t required to report all 1099 forms to the IRS by that date. They have until the end of February to file the rest of the forms.
Businesses benefited from the one-month delay in filing because it allowed extra time to correct errors. With less time to file, they’ll need to go over figures with much more scrutiny. Errors can trigger audits.
Recipients must remember that 1099s are based on their Social Security number, not their name or address. Therefore, if they receive a form, but don’t file the information, the IRS will use their Social Security number to track them down. Also, recipients need to file a W-2 with their return, but not a 1099 form. The form is a record of any income they received, such as mortgage interest, stock dividends, pensions and tax refunds. “MISC” stands for miscellaneous income.