If an employer has not yet filed a 1099 form independent contractor 2019, they should do so as soon as possible. The statute of limitations on most 1099 forms is three years. This means the IRS has three years from the original deadline to impose fines and penalties against those who neglected to file. For most, this means a 1099 from 2019 can incur a penalty up until January 31, 2023. Employers and accountants who failed to file these forms on time, but who have not yet been charged by the IRS, should do so immediately.
Still, we understand that forms sometimes slip through the cracks. This is especially true for 1099 MISC forms. Up until 2020, these forms were one of the more widely used ways to report income. From non-employment compensation to income generated from rent, prizes and awards, and legal payments, accountants need to issue these forms for a variety of reasons. That said, if you or your business is looking for a way to prevent these mistakes from happening again, Advanced Micro Solutions can help.
Has the Independent Contractor Form Changed?
Beginning with the 2020 tax year, the 1099 MISC form will be redesigned. With the creation of Form 1099-NEC, independent contractors can now receive a document separate from the 1099 MISC for non-employment compensation. The 1099 NEC will contain information previously reported in Box 7 of the 1099 MISC. There is a separate form and there are separate directions. As a result, those submitting a late 1099 form independent contractor 2019 form alongside a 2020 1099 form should take care to not mix the two up.
With this change, the IRS has taken a massive step toward streamlining the filing process for those who hire independent contractors. Previously, the information reported in box 7 of the 1099 had a separate deadline from the rest of the income reported on the document. This, as you might imagine, caused thousands of mix-ups each year, resulting in innumerable fees and penalties levied toward business owners. While accountants and payroll specialists won’t need to deal with this complexity anymore, they should keep it in mind while filing a late 1099 – things this year will be different than in years past. The 1099 form independent contractor 2019 is the last time you’ll need to pay attention to Box 7.
Advanced Micro Solutions Can Help
Employers and accountants alike make mistakes for many reasons. Most of the time, it comes down to a lack of time and efficiency. The best way to save time and streamline your processes? A semi-automated software tool, like what we offer from Advanced Micro Solutions.
Our catalogue of software products is designed to help streamline your accounting without sacrificing on quality. In simpler terms, we’ll help you file your forms on accurately and on time. We can help you file a late 1099 form independent contractor 2019 – as well as prevent late filings in the future. No matter your company’s exact needs, we have a software tool that can help. For 1099-related filings, we recommend our base 1099/W-2 platform as well as AMS Payroll. Combined, these software tools allow users to gather, store, and apply data in a variety of contexts – including 1099 forms.