1099 FORMS ARE NOT OPTIONAL – THEY’RE REQUIRED BY LAW-
Werdann DeVito LLC wanted to provide this reminder to ensure that you meet your obligation for all 2018 payments to unincorporated individuals and businesses of $600 or more (rents, services, prizes, attorney fees, etc.). The IRS is increasingly focusing their attention in this area since it is the agency’s main weapon against under reporting of income. Penalties for failing to file correct information returns have more than doubled in the last two years alone while employers, simple schedule Cs and even single property landlords are facing intense new scrutiny of their 1099s to prevent under-reporting by independent contractors. Failure to file the form for 2018 could result in a penalty that could be as much as $1,000 per each omitted 1099.
The filing deadline for 2018 W-2s and 1099 forms is January 31, 2019. To cut down tax fraud, many states have moved up the filing deadline, as well. If you are reporting gross proceeds to an attorney the due date is February 15, 2019.
If you are looking to Werdann DeVito LLC to prepare any required 1099s, you must let us know and forward the required information as soon as possible. You really should try to get your bookkeeping done by 1/15/2019 to allow enough time to complete and have the 1099s reviewed so you can meet the required January 31, 2019 filing deadline for distribution to those individuals (and then to the taxing authorities).