December 6, 2016
Hello! December just started, but that means 2017 will be here before we know it, and while every year brings with it changes, both expected and unexpected, this year there are some significant ones to filing deadlines for submitting 1099’s and W-2s that may affect you.
Despite this being the first year of the new deadline, businesses are not being granted leniency on compliance. Hefty penalties exist for those that miss the deadline. Being one to 30 days late results in a $50 per return (each 1099) fine; filing after that window thru August 1 is a $100 per return fine. Finally, filing later or not at all results in a $260 per return fine. If a business is found to have intentionally disregarded filing requirements, the penalty can be $530 per return.
To ensure a smooth year end, collect needed and sufficient 1099 information early.
Follow these tips:
NOTE: When in doubt, issue a 1099 to the vendor in question. No penalties are imposed for filing a 1099 when it is actually NOT required. However, there are severe penalties imposed for not filing 1099s if required.
Filing 1099s doesn’t have to be a high-stress procedure—if you prepare early and appropriately. Gathering critical 1099 information up front will not only alleviate chaos at year end, but also ensure that you stay compliant with 1099 filing mandates. We understand that filing 1099s is confusing for many business owners, which is why we are here to help wade through the rules and regulations.
For more information on filing 1099s or to inquire about other services we offer, please contact our firm. We are happy to help you move toward a stress-free 1099 filing process. We look forward to hearing from you.
Toll Free: 800.533.4816
For many business owners, September tends to bring a bit of a slowdown. The chaos of getting kids prepared for going back to school has passed, and a focus on saving money tends to kick in as people prepare for the coming holiday spend. Combined, this can often translate into a lull for business owners.
This is a friendly reminder that the Q3 tax estimate payment deadline is coming up fast. Be sure to make your payment by September 15, 2018 to avoid penalties. Currently, penalties for late or no payment average about 4 percent. And wouldn’t you rather keep that money in your pocket?
According to new rules from the Tax Cuts & Jobs Act, meals and entertainment tax-deductible expenses for businesses have undergone considerable reform. Because the explanations of new deduction guidelines can be confusing, we’ve created this brief outline for you. A visit with your accounting professional to ensure your Chart of Accounts is correct may also be beneficial.