Form 1099 for Tax Year 2016

Critical Changes to Deadlines & Penalties

New Filing Date

The IRS requires Form 1099-MISC to be filed on or before January 31, 2017 when you are reporting nonemployee compensation payments in box 7. Otherwise, file by February 28, 2017 if you file on paper, or by March 31, 2017 if you file electronically. The due date for furnishing payee statements remains the same as January 31, 2017.

Best Practice is to obtain a Form W-9 from qualifying vendors up front prior to 1st payment.

New Penalties

Filing Penalties:

  • File within 30 days of deadline $50
  • File after 30 days of deadline $100
  • File after August 1st or Do Not File $260
  • Intentional Disregard $530

Delivery Penalties:

  • Delivery within 30 days of deadline $50
  • Delivery after 30 days of deadline $100
  • Delivery after August 1st or Do Not Deliver $260
  • Intentional Disregard $530

Filing Extension with the IRS

Complete and file IRS Form 8809, “Request for Extension of Time to File Information Returns”, to request a 30 day extension. This request must be done prior to the deadline.

Requests can be faxed to 1-877-477-0572 or mailed to:

Internal Revenue Service
Attn:  Extension of Time Coordinator
240 Murall Drive, Mail Stop 4360
Kearneysville, WV 25430

Recipient Delivery Extension

There is not a specific form. Need to send letter with the following:

  • Payor’s name
  • Payor’s tax identification number
  • Payor’s address
  • Type of return (e.g. Form 1099-MISC)
  • A statement that the extension request is for providing statements to recipients
  • Reason for delay (this does not need to be detailed)
  • The signature of the payor or authorized agent

If more than 10 payors, the request must be submitted electronically. Send letter to:

Internal Revenue Service
Attn:  Extension of Time Coordinator
240 Murall Drive, Mail Stop 4360
Kearneysville, WV 25430

 

Forms W2 & W3 for Tax Year 2016

Critical Changes to Deadlines & Penalties

New Filing Date with the Social Security Administration

The due date for filing 2016 Forms W-2 and W-3 with the Social Security Administration is now January 31, 2017.

Higher Penalties

For returns filed after December 31, 2015, penalties have increased and can be assessed for the following:

  • Failure to file correct Forms W-2 by the due date
  • Intentional disregard of filing requirements
  • Failure to furnish Forms W-2
  • Intentional disregard of payee statement requirements

Filing Extension with the IRS

You may request one 30-day extension by submitting Form 8809 “Application for Extension of Time to File Information Returns”,  including a detailed explanation of why you need additional time.  The IRS will only grant the extension in extraordinary circumstances or catastrophe.  You must file the form before the due date of Forms W-2.

Requests can be faxed to 1-877-477-0572 or mailed to:

Internal Revenue Service
Attn:  Extension of Time Coordinator
240 Murall Drive, Mail Stop 4360
Kearneysville, WV 25430