The 501 S(c)ene

The latest view on not-for-profit accounting issues

Heads Up on Form 1099-MISC

Please note the new filing date for Form 1099-MISC, per the IRS:

Public Law 114-113, Division Q, Section 201, requires Form 1099-MISC to be filed on or before January 31, 2017 (compared to February 28th in the prior year), when you are reporting nonemployee compensation payments in Box 7. Otherwise, file by February 28, 2017, if you file on paper, or by March 31, 2017, if you file electronically. The due dates for furnishing payee statements remain the same. I strongly encourage you to mark these dates in your calendar as the penalties for noncompliance are steep!

If an organization has intentionally disregarded filing requirements, then the penalty is $500 per 1099 with no maximum cap.

As a reminder, you are required to file a Form 1099-MISC if you made, as part of your trade or business, any of the following types of payments:

  • Services performed by independent contractors or others (not employees of your business) (Box 7)
  • Prizes and awards and certain other payments (see Instructions for Form 1099-MISC, (Box 3 Other Income, for more information)
  • Rent (Box 1)
  • Royalties (Box 2)
  • Backup withholding or federal income tax withheld (Box 4)
  • Crew members of your fishing boat (Box 5)
  • To physicians, physicians’ corporations or other suppliers of health and medical services (Box 6)
  • For a purchase of fish from anyone engaged in the trade or business of catching fish (Box 7)
  • Substitute dividends or tax exempt interest payments if you are a broker (Box 8)
  • Crop insurance proceeds (Box 10)
  • Gross proceeds of $600 or more paid to an attorney (generally, Box 7, but see instructions as Box 14 may apply)

Please see the 2016 instructions for Form 1099-MISC for other useful information.

Kristian Haralson