Avoid the real March Madness and file your 1099-MISC to the IRS before or on March 31, 2015 to avoid late fees and penalties.
If you fail to file a correct 1099-MISC return by the due date and you cannot show reasonable cause, you may be subject to a penalty. The penalty applies if you fail to file timely, you fail to include all information required to be shown on a 1099 return, or you include incorrect information on a return. The 1099 penalty also applies if you file on paper when you were required to file 1099s electronically, you report an incorrect TIN (Tax Identification Number) or fail to report a TIN, or you fail to file paper 1099 forms that are machine readable. The amount of the 1099 deadline penalty is based on when you file the correct information return. The penalty is:
$15 per information return if you correctly file within 30 days (by March 30 if the due date is March 2); maximum penalty $75,000 per year ($25,000 for small businesses).
$30 per information return if you correctly file more than 30 days after the due date but by August 1; maximum penalty $150,000 per year ($50,000 for small businesses).
$50 per information return if you file after August 1 or you do not file required information returns; maximum penalty $250,000 per year ($100,000 for small businesses).
So keep that winning bracket money in your pocket and file now!
Scott Zubrickas has 20 years of experience working directly with the IRS on form regulations, requirements and electronic filing as an Authroized e-file Provider. He is a Member of WageFiling, LLC in Grand Rapids Michigan and handles business development and IRS compliance updates. To keep up on W-2/1099-MISC reporting changes that effect your business without all the legal jargon you can follow Wagefiling on Facebook and Twitter