When are Corrected 1099s Due?

There is no hard deadline for when you must file your business’s corrected 1099s. Aim to submit amended forms to the Internal Revenue Service within three years of your original filing date. A three-year window exists to collect a refund from an amended form. The IRS generally does not reject or block amended 1099s that […]

When are 940s Due?

File Form 940, the Employer’s Annual Federal Unemployment (FUTA) Tax Return, by January 31. You may find your business eligible for the February 10 deadline if you deposited all your FUTA tax when it was due. File your return on the next business day if the tax return due date lands on a Saturday, Sunday, […]

What Qualifies as a 1099 Employee?

A 1099 employee is someone who is a business owner or contractor that provides services to other businesses. The Internal Revenue Service generally qualifies these types of workers as self-employed and not employees. They are non-salaried and companies do not pay them wages for their services. Companies come to a mutual agreement with a 1099 […]

What Happens If You Missed 1099 Deadline?

Missing a 1099 deadline is not the end of the world, but you will likely face some consequences from the Internal Revenue Service. Do not fret if you miss a deadline — you can and absolutely should send any missing 1099s immediately once you discover your mistake. Some of the major consequences if you missed […]

What Happens If You Forget to File a 1099?

Expect to pay a penalty to the Internal Revenue Service if you forget to file a 1099 during tax season. Your business’s consequences will depend on if you intentionally missed a deadline or not. Check to see whether you received a notice from the IRS about a missing 1099 form. An appropriate way to handle […]

What Happens If You File 941 Late?

Employers who file 941 late will likely encounter the Failure to Deposit Penalty. The IRS’ penalty applies to employers who fail to make employment tax deposits on time, in the correct amount, and/or in the right way. The penalty that you owe the Internal Revenue Service is a percentage of the taxes in any of […]

What Happens If I Don’t File My 1099-MISC?

Failing to file your business’s 1099-MISC forms can lead to incurring penalties from the Internal Revenue Service. The severity of the penalty depends on the lateness of a Form 1099-MISC. A penalty will also be higher if you intentionally disregard the March 1 paper deadline or March 31 electronic deadline. Charges for late information returns […]

Is There a Penalty for Filing a Corrected 1099?

Yes, but all businesses must file an amended 1099 form if they make a mistake on their original form. The Internal Revenue Service’s penalty depends on the error and if it was intentional. Your business will most likely pay $100 per incident. The business may need to pay an additional fee of $100 since the […]

Is There a Penalty for Filing 941 Late?

Yes, your business will incur a penalty from the Internal Revenue Service if you file a late 941 form. Complete Form 941 correctly and by each quarterly deadline. It may otherwise appear as though you did not deposit the taxes when you owed them. The IRS’ late deposit penalty ranges from 2% to 15%. The […]

Is Software as a Service 1099 Reportable

For your business, the answer is no. Your business must file 1099 forms to report non-employee compensations. These services can range anywhere from paying independent contractors $600 or more to reporting awards, prizes, and rents. Do not get confused with what software vendors must report. Vendors that offer software with an established time limitation — […]