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Date: January 13, 2014
Subject: Sending Out 1099-MISC Forms on Time ...

This is 
G&G Associates Tax & Financial Consulting
  Tax Tip of the Week
Sending Out 1099-MISC Forms on Time



Hotep G&G Readers,
Paperwork is the necessary evil for any business. Yet there are some things you just have to do. Of course, this is certainly the case with the IRS. And one of their requirements –which many businesses need to deal with at this time of the year — is sending out 1099-MISC forms.

These are for whenever you pay independent contractors $600 or more, say for your attorney or computer consultant (to get more information on this topic, you can click here). The IRS mandates that you send a 1099-MISC to each person by January 31st. The agency will then also want a copy by February 28th. Although, this deadline is extended to March 31st if you use electronic filing.

And what if you miss any of these?  Well, there will be penalties, which depend on how late you are with the filings.

Internal Sponsorship:


If you need to prepare and e-file your 1099 Misc forms for your business, we can take care of it for you.

G & G Associates is a Black-Owned Business focused on easing our client's minds on tax compliance matters. With the ever changing and burdensome tax code, overwhelming and confusing federal and state tax forms and increasing IRS scrutiny over most tax items, taxpayers need to have at least this one part of their lives made easier, less stressful and more profitable.

Our expert help includes our:

In-Depth Interview — a thorough and complete experience designed to unearth every tax savings opportunity during the course of your tax preparation. We use these to the latest IRS guidelines to guide you through a painless, interactive session so that together, we catch every single detail that results in more tax savings for you.

We can service clients anywhere in the world and we look forward to assisting you in getting your tax return prepared for the 2013 and beyond tax season. (Referrals available upon request)
                                                        2013 / 2014 1099 Deadline Penalty - 1099-MISC Deadline Penalty

If you fail to file a correct 1099 information return by the due date and you cannot show reasonable cause, you may be subject to a penalty. The penalty applies if you fail to file timely, you fail to include all information required to be shown on a 1099 return, or you include incorrect information on a return. The 1099 penalty also applies if you file on paper when you were required to file 1099s electronically, you report an incorrect TIN (Tax Identification Number) or fail to report a TIN, or you fail to file paper 1099 forms that are machine readable. The amount of the 1099 deadline penalty is based on when you file the correct information return. The penalty is:

$15 per information return if you correctly file within 30 days (by March 30 if the due date is February 28); maximum penalty $75,000 per year ($25,000 for small businesses).

$30 per information return if you correctly file more than 30 days after the due date but by August 1; maximum penalty $150,000 per year ($50,000 for small businesses).

$50 per information return if you file after August 1 or you do not file required information returns; maximum penalty $250,000 per year ($100,000 for small businesses).

Now you can fill out the 1099-MISC forms yourself – but this is probably a bad idea.  While they may seem easy, there are some potential landmines.

Without a doubt, pass this on to anyone you know who has a business and might be effected by this information.

One of the benefits of being a client with G&G Associates is that you'll get a free 30 min pre-tax preparation session to make sure you are gathering your documents appropriately before you submit your documents for tax preparation.

So, contact us today to schedule an appointment.

Visit our website for more information and free online webinar classes to help you make sure you are audit proofing your records, or contact us today to set your appointment if you need a “TAX” OR “FINANCIAL” one-on-one consultation.

Until the next time!

Meda Ase P (Thank You Very Much),

Asar Maa Ra Gray
Tax & Financial Consultant, RFC
G&G Associates
757-271-6068 office
866-361-3872 toll free fax

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