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2017 Form 1099 Filing Requirements

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2017 Form 1099-MISC Filing Requirements

Form 1099-MISC is used to report certain types of payments made in the course of a trade or business.

If you're in business or self-employed, you may need to submit this form to both the Internal Revenue Service and the person or business whom you paid.

When is Form 1099-MISC Required?

Businesses will need to fill out a Form 1099-MISC for persons, vendors, subcontractors, independent contractors, and others in the following circumstances:

$600 or more per year is paid for:

  • services (including parts and materials)
  • proceeds paid to attorneys
  • rents
  • cash payments to fishermen
  • crop insurance proceeds
  • medical and health care payments
  • prizes and awards
  • other types of payments not covered by another information reporting document.

Reporting such payments is required if the recipient of the payment is NOT a corporation -- for example, when the recipient is an individual, partnership, a limited liability company treated as a partnership or sole proprietorship. Payments made to corporations are required in the case of medical and health care payments and in the case of legal fees paid to attorneys. Other types of payments made to corporations may be reported using Form 1099-MISC, but is not required.

Steps to Take to Prepare for 1099-MISC Forms

Request that your vendors, contractors and other payment recipients submit to you a Form W-9.  The W-9 will provide you with the legal name, address and taxpayer identification number for the vendor, which is the information you will need when preparing any 1099-MISC forms.

You will need to know whether the payment falls under any of the categories listed above for reportable payments, whether your payments to a particular recipient reaches the $600 threshold for reporting, and finally you'll need to know the exact amount you paid the recipient for the year.

Form 1096 - Annual Summary & Transmittal

Form 1096 is required to be filed with Form 1099-MISC when submitting the forms to the Internal Revenue Service.

Deadlines for 1099-MISC Forms

  • Provide the recipient with his or her copy of the Form 1099-MISC by February 1, 2018, reporting income payments for the year 2017.
  • Mail the Form 1096 and Form 1099-MISC to the IRS by February 28, 2018.

Penalties for Filing Form 1099-MISC Late

  • $30 penalty for filing a 1099 not more than 30 days late;
  • $60 penalty for filing a 1099 more than 30 days late and before August 1;
  • $100 penalty for filing a 1099 on or after August 1;
  • $250 penalty for intentional failure to file.