The deadline for providing W-2 forms to employees and 1099-MISC forms to contractors and other workers for 2019 is January 31, 2020. The IRS has increased penalties for filing late. If you use independent contractors to perform services 
for your business and you pay them $600 or more for the year, you are required to issue them a Form 1099-MISC to avoid losing the expense deduction for their services.
It is very common to have a service provider, say your marketing guru, do some work for you in June and you pay her less than $600 and then you use her services again in October and the total for the year exceeds the $600 limit. Because of the multiple engagements, you overlook collecting their complete name, tax identification number (TIN) and other needed to file the 1099s for the year. Therefore, it is good practice to have individuals who are not incorporated complete and sign the IRS Form W-9 the first time you use their services. Having properly completed and signed Form W-9s for all independent contractors and service providers eliminates any oversights 
and protects you against IRS penalties and conflicts.
IRS Form W-9 (Request for Taxpayer Identification Number and Certification) is provided by the government as a method by which you may obtain the data required to file 1099s for your vendors. It also shows the IRS that you complied with the law in the case the vendor provided incorrect filing information. The W-9 is for your use only and is not submitted to the IRS. We highly recommend that you have of your vendors complete a Form W-9 prior to engaging them.
Increased Penalties for Filing Late
The IRS has increased the penalties this year. The penalties range from $50-$550 for EACH missed 1099 tax form, depending on how late the forms were submitted.
Penalty per Form:
- $50 – More than 30 days late
- $110 – More than 30 days late but before August 1st
- $270 – Filing on or after August 1st
- $550 – Intentionally neglecting to file
If you are required to file 250 or more information returns, you must file them electronically.
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Contact us to prepare them.
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About Doris Cristiano & YourBizManager
As an independent bookkeeper, Doris Cristiano has been providing flexible business services on the west-side of Los Angeles since 1997. To support business needs and growth, YourBizManager tailors its services to each unique situation and works closely with its Clients’ at their business or home office. More About Us
