With tax season upon us and the unemployment rate decreasing, both employers and employees are under stress to file their W-2 or 1099 forms for 2012. Tax lawyer Robert Wood explains in a Forbes article what to remember when filing IRS 1099 tax forms.
As for timing, the IRS will begin processing this past year’s 1099 forms on January 30. With higher penalties for 1099 mistakes combined with the retroactive fiscal cliff changes, the IRS “has its work cut out for them,” in Wood’s words. While there are exceptions for different IRS 1099 tax forms, the last day 1099-forms should be received by employees is January 31. As explained in an earlier and-1099-forms/” target=”_blank” rel=”noopener”>blog post, if filing electronically, the deadline is April 1, and postmarked by February 28 if on paper.
Wood also reminds recipients to report any mistakes or changes as soon as possible. “There may be time to correct it before it goes to the IRS,” he writes. “If the issuer has already dispatched it to the IRS, ask them to issue a corrected form. If you disagree with the information on the form but you can’t convince the payer you’re right, explain it on your tax return.”
If you have moved recently, give the post office a forwarding address to make sure all forms are received on time. To avoid the earlier deadlines or missing mailed forms, 1099 processing services can also help companies keep track of the forms.
Lastly, for employees, if you don’t receive a 1099 form and were expecting one, don’t ask for it – instead, just report income on a tax return. And report every payment to avoid being billed later by the IRS.
Tab Service Company is a leading provider of 1099 outsourcing services. As an SOC2-approved service organization, we apply industry-best practices to our approach with clients. If you need more information about filing taxes, don’t hesitate to contact us.