global Tax Deadline for Filling 1099s Is January 31st January 14, 2020 Attention business owners, did you pay anyone besides employees more than $600 this year? You are required to send IRS Form 1099-MISC to these individuals and non-corporate business entities by January 31st. Attention businesses, did you pay anyone besides your employees this year? There is a filing deadline approaching! If you paid non-employee individuals and/or non-corporate businesses (e.g. LLCs and partnerships) $600 or more for services during 2019, you are required to issue IRS Form 1099-MISC to them by January 31st. Noncompliance penalties can prove costly.1099 BasicsCommon examples of who Form 1099-MISC must be issued to, include: Non-employee individuals that your business paid at least $600 or more in rents, services, prizes and awards, medical and health care payments, or other income payments.Non-corporate business entities, including LLCs and partnerships, that you paid at least $600 or more in rents, services, prizes and awards, or other income payments.Attorneys, even if incorporated, that you paid gross proceeds of $600 or more.Are there different versions of 1099?Yes—there are several versions of the Form 1099. The version required to be provided to nonemployees is based on the type of income that is being reported. The 1099-MISC is essentially the most widely used version and is used for nonemployee compensation, rental income, royalties, attorney fees, and boat proceeds. Read our blog, “Guidelines on filing Form 1099-MISC”.Other versions include…..1099-INT is used to report interest income.1099-S covers sales and exchanges of real estate or land.1099-C is used for cancelled or forgiven debt.1099-R is used for life insurance contracts, retirement plans, annuities, and pensions.1099-DIV is used for dividends and distributions of liquidations and capital gains.Note: the timeline to file Form 1099-MISC in 2019 has been shortened. The due date to issue and e-file to the IRS is January 31, 2020. The IRS allows a 30-day extension of time to file Form 1099-MISC by completing and submitting Form 8809, by January 31, 2020. Penalties for not filingDepending on how late you file, penalties for neglecting to timely file correct returns range from $50-$270 for each information return, with a maximum penalty per year of $3,339,000. A lesser penalty is imposed for information returns filed or corrected by August 1st.The IRS reduces the maximum fine for small businesses with $5 million or less in average annual gross receipts for the past three years, but the fine increases to $540 or more per return, with no maximum penalty, if the IRS can prove that your business was intentionally disregarding the filing requirements.Moreover, late filing of mandatory 1099s could lead to penalties ranging from $50 to $110 per 1099, with a maximum late filing penalty of $1,113,000 a year for small businesses.W-2s also required to be issued by January 31stEmployers must file and postmark W-2s by January 31st as well. Form W-2 must be filed if you have one or more employees to whom you made payments for the employees’ services in your trade or business during 2019.Do you need assistance with your 1099 filing this year? Contact us.