No one enjoys filing tax forms, but for a business owner, this task is a must. While procrastination can happen to the best of us, failing to file your 1099s in a timely manner can be a costly mistake. If you are facing down tax season and you aren’t sure what deadlines you need to meet or what happens if you miss them, we are here to help. Our goal is to make filing 1099s a simple and fast process so that you never have to face the dilemma of missed deadlines. Read on to learn more about what deadlines you need to meet and what will happen if you do not get your paperwork in on time.
January 31: An Important Date To Remember
One of the most important deadlines for you to keep in mind in regards to filing 1099s is January 31. This is the date by which most of your forms will be due. Not only is it vital that you have submitted and filed these forms with the IRS by January 31, but this will also help ensure that recipients receive their copies by the proper date as well.
While it may feel like an overwhelming task, procrastinating filing your 1099s is a disastrous choice with hefty consequences. Be sure that you clearly understand all relevant deadlines and that you start the process early. You can begin filling out all the information in December to prevent missed deadlines.
Reasons You Might Be Penalized
There are multiple reasons why you might wind up being penalized by the IRS in regards to your 1099s. If you miss the January deadline, you will be hit with fines for every late 1099 form. This can quickly add up if you have hundreds of 1099s to submit, which is why handling it in a timely manner is vital.
Another reason you might be penalized is for not providing adequate information to the IRS. Make sure that you fill out the forms completely and that you do not skip over any vital information. Missed information can also lead to hefty fines.
Finally, you can be penalized for filing 1099s with incorrect information. Any corrections you need to submit after the January deadline will cost you in fines and fees. Learn more about the specific penalties you might be subject to on our Penalties for 1099s page.
While submitting your forms late, incomplete, or with incorrect information can all be the cause for major fines from the IRS, there are situations where you can get out of these fines. In the case where you had a viable reason for messing up the forms or submitting them late, you can get the fees waived. In order to do this, you will need to document your reasoning and submit it to the IRS. You will need to prove to the IRS that your mistake was due to a reasonable cause, not because of your own negligence. Unfortunately, forgetfulness or procrastination will not be enough cause for the fees to be waived. You will have to convince the IRS that you did your due diligence but that something outside of your control prevented you from submitting the correct information on time.
Take Action Right Away
If you have missed the deadline for filing 1099s, the best thing you can do is take action right away. Submit any missed forms or corrected information immediately. You can then work on submitting information to the IRS in an attempt to prove that this was not due to your negligence. The longer you put off rectifying the situation, the more fines you will be penalized with.
One of the best ways you can prevent the unfortunate mistake of forgetting to file 1099s or filling them out incorrectly is to utilize our simple platform at OnlineFileTaxes.com. We make filing 1099s simple, fast, and affordable. Avoid missing the deadline, sign up for free today.