1099 Due Dates, Pricing, and IRS Penalties for Late Filing

How to avoid penalties and late fees when filing 1099-MISC and 1099-NECs.

Who Needs a 1099-MISC?

As a business owner, you are required to issue a 1099-MISC to each unincorporated individual (such as sole proprietors, LLCs, and partnerships- with a few exceptions) you have paid:
  • At least $10 in royalties or broker payments in lieu of dividends
  • At least $600 in:
    • Rents;
    • Services performed by someone who is not your employee;
    • Prizes and award money;
    • Other income payments;
    • Medical and health care payments;
    • Crop insurance proceeds;
    • Cash payments for fish (or other aquatic life) you purchase from anyone engaged in the trade or business of catching fish;
    • Generally, the cash paid from a notional principal contract to an individual, partnership, or estate;
    • Payments to an attorney; or
    • Any fishing boat proceeds.
In addition, you need to use form 1099-MISC report that you made direct sales of at least $5,000 of consumer products to a buyer for resale anywhere other than a permanent retail establishment.

When is the 1099-MISC Due?

January 31, 2020- 1099 forms must be delivered to your vendors and the IRS.

What are the 1099 Penalties For Filing Late or Not Filing?

The IRS has begun increasing penalties associated with late filing or intentionally not filing 1099s for your vendors and the penalties range from $50 per form to $530 per form, with no maximum penalty. It is in your best interest to file all 1099s on a timely basis.

What We Need From You To File on Time

We are happy to assist you with preparing and filing 1099s, but in order to do so, we will need to get completed W9s for all of your vendors. Our team will reach out to you to let you know what is missing, so that you can be in touch with your vendors to request this form.
A blank W9 form has been attached for your convenience. As you can see, there is a place to enter the vendor's email information. Providing the vendor's email address will reduce your overall costs to file 1099s as this eliminates the need to snail mail documents to your vendors.

Deadlines to Send W9s to Accountingprose

In order to file your 1099s on time, the following deadlines must be met:
  • January 15th: All completed W9s are due to Accountingprose.
  • January 16th to January 30th Late W9s are accepted.
    • An additional fee of $25 per form will be added to your next invoice to process 1099s from January 16th to January 30th
  • January 31st to August 1st: Late W9s are accepted.
    • An additional fee of $50 per form will be added to your next invoice to process 1099s from January 31 to August 1st
  • August 2nd to December 31st: No additional 1099s may be filed through Accountingprose.

Timeline and Pricing

Once we have finalized your 1099-MISCs, we will provide the forms for your review via a secure Box link. If you see any issues with the 1099-MISC forms, please let us know as soon as possible so that we may make changes. Depending on what information we have on file for your vendors, we will either provide copies of 1099s to your vendors via snail mail or provide an electronic copy via email. While we do not bill back our time for filing these documents, we do bill back the postage and filing fees once we have finalized your 1099s.
These fees vary depending on volume and are typically:
  • Electronic Filing Fees - $1.12 per form
  • Domestic Postage - $1.87 per form
All finalized 1099s are e-filed with the IRS and SSA by the 31st of January so that you do not incur penalties.