Are your 1099s prepared for 2022? If you paid someone who is not your employee (such as a subcontractor, attorney, or accountant) $600 or more for services in 2022, you must complete and submit a 1099 to the IRS by January 31 of the following year, and a copy of the 1099 must also be provided to the independent contractor by January 31. You could get hit with IRS penalties for late forms that start at $50 and go up to $290 per form. The IRS charges separate penalties for failing to:
- File a correct information return on time
- Provide correct payee statements
The IRS charges penalties for each information return you fail to correctly file on time and each payee statement you fail to provide. There is also interest charged on penalties, which increases the amount you owe until you pay your balance in full. These fines can quickly add up to over $14,000 for 50 forms!
Don’t donate your cash to the IRS!
Visit our new 1099 Services page for more information about how SBK can help your business avoid fines and get your forms out the door: