Penalties Double for Late 1099s

Editor's Note (02/21/12): A previous version of this post incorrectly stated the deadline for Form 1099s that are mailed. The correct dates are now shown in the post.

Form 1099s that are mailed are due on February 28, 2012, for the 2011 tax year (April 2, 2012, for those filing electronically), and churches that need to issue these forms should take note this year: a failure to send them on time has doubled from $50 per form to $100 per form.

If you do not have all the information needed to complete a Form 1099 (such as a Social Security number), you can still file it incomplete by February 28. As long as you secure the missing information and file the amended Form 1099 before August 1, 2012, then no penalties will apply. By the way, if you file the Form 1099 within 30 days after February 28, the $100 penalty is reduced to $30. If you file Form 1099 more than 30 days after February 28, but before August 1, 2012, the penalty is reduced to $60 per form.

The IRS projects collecting big bucks from these penalties over the next few years. Churches should check—and double check—to make certain Form 1099s are issued to all unincorporated businesses that provided services of $600 or more to them during 2011. This includes sole proprietorships, partnerships, and limited liability corporations (LLCs). You can verify the business information via a Form W-9.

For more information related to churches and taxes, check out the 2012 Church & Clergy Tax Guide.

This content is designed to provide accurate and authoritative information in regard to the subject matter covered. It is published with the understanding that the publisher is not engaged in rendering legal, accounting, or other professional service. If legal advice or other expert assistance is required, the services of a competent professional person should be sought. "From a Declaration of Principles jointly adopted by a Committee of the American Bar Association and a Committee of Publishers and Associations

Comments

Displaying 1–4 of 4 comments

Matt

February 21, 2012  2:18pm

Mark–You are correct. The correct information is now reflected in the text above.

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Matt

February 21, 2012  12:58pm

Mark–Thanks for your comments. I'm working with Frank right now to clarify this. We'll update soon.

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Mark Todd

February 21, 2012  12:50pm

Per the 1099 instructions for 2011 paper filed returns, the due date is February 28th, 2012, not the 29th.

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Mark Todd

February 21, 2012  12:40pm

According to the 1099 instructions for 2011 returns, the due date is February 28th, 2012 for paper filed returns (not the 29th) or April 2, 2012 if you file these electronically.

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