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I filed my 1099-MISC forms with Box 7 along with my other 1099 forms after January 31. Now what do I do?

Views: 6793 Created: 2018-01-07 17:11 Last Updated: 2018-01-09 11:50

SYMPTOM

I did not file my 1099-MISC forms with Box 7 separately from my other 1099 form types.  What do I need to do now?  What if I filed after the January 31 deadline?

SOLUTION

1099-MISC forms with Box 7 are due to the IRS by January 31, while 1099-MISC forms with non-Box 7 and all other 1099 forms types are due to the IRS by March 31.  If the 1099-MISC forms with Box 7 were completed and filed with any other 1099 forms by January 31, then there will be no issue with the IRS.  This is because the 1099-MISC forms were received by the filing deadline of January 31.

If any 1099-MISC forms with Box 7 were completed and filed after January 31, with or without any other 1099 forms, the IRS may issue a penalty for late filing.  The amount of the penalty will be based upon all forms received after January 31, not just the 1099-MISC forms with Box 7 NEC.

  • For example: If a filer completes and submits 200 1099-MISC forms after January 31 but before March 31 and only 50 of those forms contain Box 7 NEC data, the filer will receive a proposed penalty notice on all 200 forms.
If this happens, it will be up to the filer to contact the IRS to work out the amount of the penalty that is associated with the truly late forms.  In the above example, the penalty amount should be for the 50 1099-MISC forms with Box 7 NEC data.  Contact the IRS to discuss the penalty and come to the dollar value of what should be owed.

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