I've got 99 Problems but a 1099 Ain't One!

I've got 99 Problems but a 1099 Ain't One!

Avoiding 5 of the most common 1099 Filing Mistakes

An accountant's job can be a stressful especially in the height of the tax season. There's a hundred things that can go wrong, but we're here to make at least one of those things go right your 1099 filing.

There's more than one 1099 form out there and the deadlines vary. Here's your guide to help avoid 5 of the most common 1099 mistakes.

While reading this article, if you are a traditional software and paper forms filer, beware of the pitfalls and be certain to consider the assistance you can receive from online filing solutions like Eagle View.

This grid below is provided to help you decide which 1099 information return is right for you or your clients This information was taken from the IRS publication " 2017 General Instructions for Certain Information Returns "

(If any date shown falls on a Saturday, Sunday, or legal holiday, the due date is the next business day.)

Form Title What to Report Amounts to Report Due Date To IRS Due Date To Recipient
1099-A Acquisition or Abandonment of Secured Property Information about the acquisition or abandonment of property that is security for a debt for which you are the lender. All amounts Feb. 28 if filing by paper

March 31 if e-filing

Jan. 31 (To Borrower)
1099-B Proceeds From Broker and Barter Exchange Transactions Sales or redemptions of securities, futures transactions, commodities, and barter exchange transactions (including payments reported pursuant to an election described in Regulations section 1.1471-4(d)(5)(i)(A) or reported as described in Regulations section 1.1471-4(d)(2)(iii)(A)) All Amounts Feb. 28 if filing by paper

March 31 if e-filing

Jan. 31

Mar. 15 for reporting by trustees and middlemen of WHFITs

1099-C Cancellation of Debt Cancellation of a debt owed to a financial institution, the Federal Government, a credit union, RTC, FDIC, NCUA, a military department, the U.S. Postal Service, the Postal Rate Commission, or any organization having a significant trade or business of lending money. $600 or more Feb. 28 if filing by paper

March 31 if e-filing

Jan 31
1099-CAP Changes in Corporate Control and Capital Structure Information about cash, stock, or other property from an acquisition of control or the substantial change in capital structure of a corporation. Over $1,000 Feb. 28 if filing by paper

March 31 if e-filing

Jan. 31 (to shareholders)

Jan. 5 (to Clearing Organization)

1099-DIV Dividends and Distributions Distributions, such as dividends, capital gain distributions, or nontaxable distributions, that were paid on stock and liquidation distributions (including distributions reported pursuant to an election described in Regulations section 1.1471-4(d)(5)(i)(A) or reported as described in Regulations section 1.1471-4(d)(2)(iii)(A)). $10 or more, except $600 or more for liquidations Feb. 28 if filing by paper

March 31 if e-filing

Jan. 31

Mar. 15 for reporting by trustees and middlemen of WHFITs

1099-G Certain Government Payments Unemployment compensation, state and local income tax refunds, agricultural payments, and taxable grants. $10 or more for refunds and unemployment Feb. 28 if filing by paper

March 31 if e-filing

Jan. 31
1099-INT Interest Income Interest income (including payments reported pursuant to an election described in Regulations section 1.1471-4(d)(5)(i)(A) or reported as described in Regulations section 1.1471-4(d)(2)(iii)(A)); market discount subject to an election under section 1278(b). $10 or more ($600 or more in some cases) Feb. 28 if filing by paper

March 31 if e-filing

Jan. 31

Mar. 15 for reporting by trustees and middlemen of WHFITs

1099-K Payment Card and Third Party Network Transactions Payment card transactions All amounts Feb. 28 if filing by paper

March 31 if e-filing

Jan. 31
Third party network transactions ($20,000 or more and 200 or more transactions)
1099-LTC Long-Term Care and Accelerated Death Benefits Payments under a long-term care insurance contract and accelerated death benefits paid under a life insurance contract or by a viatical settlement provider. All amounts Feb. 28 if filing by paper

March 31 if e-filing

Jan. 31
1099-MISC Miscellaneous Income

(Also, use to report direct sales of $5,000 or more of consumer goods for resale.)

Rent or royalty payments; prizes and awards that are not for services, such as winnings on TV or radio shows (including payments reported pursuant to an election described in Regulations section 1.1471-4(d)(5)(i) (A) or reported as described in Regulations section 1.1471-4(d)(2)(iii) (A)). $600 or more, except $10 or more for royalties If there are any payments for nonemployee compensation reported in box 7 then the due date is Jan. 31 for both paper and e-filing

IF there are NO payments for nonemployee compensation in box 7 then the due date is Feb. 28 for paper and mar. 31 for e-filing.

Jan. 31

Mar. 15 for reporting by trustees and middlemen of WHFITs

Payments to crew members by owners or operators of fishing boats including payments of proceeds from sale of catch. All amounts
Section 409A income from nonqualified deferred compensation plans (NQDCs). All amounts
Payments to a physician, physicians' corporation, or other supplier of health and medical services. Issued mainly by medical assistance programs or health and accident insurance plans. $600 or more
Payments for services performed for a trade or business by people not treated as its employees (including payments reported pursuant to an election described in Regulations section 1.1471-4(d)(5)(i)(A) or reported as described in Regulations section 1.1471-4(d)(2)(iii)(A)). Examples: fees to subcontractors or directors and golden parachute payments. $600 or more
Fish purchases paid in cash for resale $600 or more
Crop insurance proceeds. $600 or more
Substitute dividends and tax-exempt interest payments reportable by brokers. $10 or more Feb. 15 if filing paper or e-filing

Mar. 15 for reporting by trustees and middlemen of WHFITs

Gross proceeds paid to attorneys $600 or more Feb. 15 if filing paper or e-filing

Mar. 15 for reporting by trustees and middlemen of WHFITs

A U.S. account for chapter 4 purposes to which you made no payments during the year that are reportable on any applicable Form 1099 (or a U.S. account to which you made payments during the year that do not reach the applicable reporting threshold for any applicable Form 1099) reported pursuant to an election described in Regulations section 1.1471-4(d)(5)(i)(A). All accounts (including $0)1 Jan. 31

Mar. 15 for reporting by trustees and middlemen of WHFITs

1099-OID Original Issue Discount Original issue discount (including amounts reported pursuant to an election described in Regulations section 1.1471-4(d)(5)(i)(A) or reported as described in Regulations section 1.1471-4(d)(2)(iii)(A)); market discount subject to an election under section 1278 (b). $10 or more Feb. 28 if filing by paper

March 31 if e-filing

Jan. 31

Mar. 15 for reporting by trustees and middlemen of WHFITs

1099-PATR Taxable Distributions Received From Cooperatives Distributions from cooperatives passed through to their patrons including any domestic production activities deduction and certain pass-through credits. $10 or more Feb. 28 if filing by paper March 31 if e-filing Jan. 31
1099-Q Payments From Qualified Education Programs (Under Sections 529 and 530) Earnings from qualified tuition programs and Coverdell ESAs. All amounts Feb. 28 if filing by paper March 31 if e-filing Jan. 31
1099-QA Distributions from ABLE Accounts Distributions from ABLE accounts. All amounts Feb. 28 if filing by paper or e-filing Jan. 31
1099-R Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. Distributions from retirement or profit-sharing plans, any IRA, insurance contracts, and IRA recharacterizations (including payments reported pursuant to an election described in Regulations section 1.1471-4(d)(5)(i) (B) or reported as described in Regulations section 1.1471-4(d)(2)(iii) (A)). $10 or more Feb. 28 if filing by paper

March 31 if e-filing

Jan. 31
1099-S Proceeds From Real Estate Transactions Gross proceeds from the sale or exchange of real estate and certain royalty payments. Generally, $600 or more Feb. 28 if filing by paper

March 31 if e-filing

Feb. 15
1099-SA Distributions From an HSA, Archer MSA, or Medicare Advantage MSA Distributions from an HSA, Archer MSA, or Medicare Advantage MSA. All amounts Feb. 28 if filing by paper

March 31 if e-filing

Jan. 31

We've included the filing deadlines in the grid above, but in case you're a visual person you can use this reference to know which dates to be aware of:

Important 1099 dates in January:

Jan. 5, 2018 Jan. 31, 2018
1099- CAP recipient copy (to clearing organization) 1099-A Due to Recipient (to Borrower)

1099-C Due to Recipient

1099- CAP Due to Recipient (to shareholders)

1099-DIV Due to Recipient

1099-G Due to Recipient

1099-INT Due to Recipient

1099-K Due to Recipient

1099-LTC Due to Recipient

1099-MISC Due to IRS (e-file & print)

1099-MISC Due to Recipient

1099-OID Due to Recipient

1099-PATR Due to Recipient

1099-Q Due to Recipient

1099-QA Due to Recipient

1099-R Due to Recipient

1099-SA Due to Recipient

Important 1099 dates in February:
Feb. 15, 2018 Feb. 28, 2018
1099-B Due to Recipient

1099-MISC Due Date extended to Recipient if you are reporting payments in box 8 or 14

1099-A Due to Recipient (to Borrower)

1099-C Due to Recipient

1099- CAP Due to Recipient (to shareholders)

1099-DIV Due to Recipient

1099-G Due to Recipient

1099-INT Due to Recipient

1099-K Due to Recipient

1099-LTC Due to Recipient

1099-MISC (Nothing in Box 7) Due to IRS (paper)

1099-OID Due to Recipient

1099-PATR Due to Recipient

1099-Q Due to Recipient

1099-QA Due to Recipient

1099-R Due to Recipient

1099-SA Due to Recipient

Important 1099 dates in March:
March 15, 2018 March 31, 2018
1099-B Due for reporting by trustees and middlemen of WHFITs

1099-DIV Due for reporting by trustees and middlemen of WHFITs

1099-INT Due for reporting by trustees and middlemen of WHFITs

1099-MISC Due for reporting by trustees and middlemen of WHFITs

1099-OID Due for reporting by trustees and middlemen of WHFITs

1099-S Due for reporting by trustees and middlemen of WHFITs

1099-A Due to IRS (E-file)

1099-B Due to IRS (E-file)

1099-C Due to IRS (E-file)

1099-CAP Due to IRS (E-file)

1099-DIV Due to IRS (E-file)

1099-G Due to IRS (E-file)

1099-INT Due to IRS (E-file)

1099-K Due to IRS (E-file)

1099-LTC Due to IRS (E-file)

1099-MISC (Nothing in Box 7) Due to IRS (E-file)

1099-OID Due to IRS (E-file)

1099-PATR Due to IRS (E-file)

1099-Q Due to IRS (E-file)

1099-R Due to IRS (E-file)

1099-S Due to IRS (E-file)

1099-SA Due to IRS (E-file)

January through March can be incredibly busy months so wouldn't it be helpful to get friendly reminders of filing deadlines sent directly to your email! You can be reminded when the most common forms are due with an online filing solution account. They will send out helpful email reminders and countdowns so you're aware of upcoming deadlines.

Create a Free Account and get helpful reminders

Sure, you can find a 1099 form on the IRS website but did you know that the red text and lines you see in their PDF preview needs to be printed with a special ink? If you're not sure how many forms you need or you don't want to buy a whole pack for only a few recipients, consider a more cost-effective method. This is where on line solutions like Eagleview provide so much value to tax pros, accountants and small business owners. You don't need to know how many forms you will need this season or which pack of forms to buy because you're letting an expert on line filing company efile,  print and mail for you. All you have to do is provide the correct information…which leads us to mistake #4.

We've all been there. Everyone makes mistakes. Unfortunately the IRS isn't so lenient. It is so important the information you report is always accurate and matches what the recipient is reporting for income. It takes much longer to go back to send in corrections to already filed forms. So be sure to create a process to double and even triple check data before sending it to be filed with the IRS. Even with stringent checks in place you may still find yourself having to file a correction. What's nice about using an online filing solution like Eagleview is that you don' t have to be connected to your computer with this year's installed version of the filing software to make corrections. You can easily file a correction form from any computer by logging into your Eagle View account and selecting which correction form you need to send. And remember, it's that much easier with online filing because we save your data for you for four years.

In the case where you report an incorrect taxpayer name or ID number you will need to make the correction in a written letter and send it to the IRS. You can find out more information about that letter in these instructions from the IRS .

You're required to file a separate 1096 for each type of 1099 form filed. For example, if you file 1099-MISC and 1099-INT forms then you would have to send two separate 1096 forms — one for the 1099-MISCs and another for the 1099-INTs. If you choose to e-file those 1099 forms then the 1096 forms are automatic. As a part of our e-file process on Eagle View, we compile the summary data required on Form 1096 and transmit it along with your forms.

Create a Free Online Filing Account

Hopefully this article was helpful and informative as we go into this new year and busy tax season. Avoiding these 5 mistakes when filing 1099's this season should save you time and help make your life easier. Online filing solutions can really help you with form selection, deadlines, incorrect information, corrections and more. **mic drop**

This material may not be published, rewritten or redistributed without permission, except as noted here. This site includes, or may include, links to third party Internet Websites controlled and maintained by others. When accessing these links the user leaves this site. These links are included solely for the convenience of users and their presence does not constitute any endorsement of the Websites linked or referred to nor does Tenenz, Inc. have any control over, or responsibility for, the content of any such Websites. All rights reserved.