Form 1099-MISC must be filed by a business owner who pays others $600 or more in income for business- or trade-related matters, according to Entrepreneur. The payments covered by Form 1099-MISC include income paid in the form of rents, services, prizes and cash.Continue Reading
There are a few exceptions to whom the forms are sent, states Entrepreneur. These exceptions include payments to real estate agents for rent; to sellers dealing in merchandise, storage or freight orders; or to corporations, unless it is an incorporated lawyer.
The penalty for not filing a Form 1099-MISC can be as large as a $1.5 million fine. The fine is assessed per form not filed at rates of $30 to $100 for each form. If it can be proven that the lack of filing a form is deliberate, the fine per form rises to $250 per form minimum with no maximum penalty limitation, reports Entrepreneur.
To obtain a Form 1099-MISC, the form can be ordered from the IRS or picked up from an IRS service center. Forms may also be obtained from post offices while supplies at each location remain. The deadline for sending the form to vendors is Jan. 31, according to Entrepreneur. The actual Form 1099-MISC is due to the IRS on filing day. The form may need to be filed with the state where the business operates, if required by that state.Learn more about Taxes