Form 1099 Filings for Year-End 2018 Due January 2019

Happy New Year to our readers! Now that 2019 is upon us, businesses are gearing up for reporting season. Many taxpayers will be required to issue Form 1099-MISC to service providers or for rents or royalties or other types of income or compensation related to transactions occurring during 2018.

The Protecting Americans from Tax Hikes (PATH) Act of 2015 requires Forms 1099-MISC reporting non-employee compensation (NEC) in Box 7 to be filed by January 31 each year, whether submitted by paper or electronically. The 1099-MISC reporting NEC must also be furnished to the recipient by this date. As most Form 1099 filers report NEC, these are important due dates and are fast approaching.

Form 1099-MISC is also utilized to report other types of income to recipients. For those taxpayers reporting income to recipients in Box 8 or 14, the due dates differ as follows:

• Not reporting NEC and filed on paper: February 28. Due to recipient by February 15.
• Not reporting NEC and filed electronically: April 1. Due to recipient by February 15.

EXTENSIONS

There are generally no extensions granted for filing Form 1099-MISC. (Extensions will only be granted in the event of a catastrophic event, fire, casualty, natural disaster, serious illness, or unavoidable absence of the individual responsible for the filing).

For taxpayers who file Forms 1099-MISC reporting NEC after January 31, 2019, the filing must be transmitted separately from Forms 1099-MISC without NEC. Filers should anticipate that for any filing after January 31, 2019, that includes both Forms 1099-MISC reporting NEC and Forms 1099-MISC not reporting NEC in a single transmission, the IRS will treat every form in the transmission as if it is subject to a failure-to-file penalty.

If you have any questions related to Form 1099-MISC due dates or requirements, contact your Marcum tax professional.