Be Careful of Due Date Changes That May Cause Penalties in 2017

Posted By on Jan 3, 2017 | 0 comments

Businesses should know that due dates for some forms and returns were moved up in 2017. According to a prominent Cincinnati tax preparation service, businesses could face penalties if they engage the services of an individual independent contractor (as opposed to a business entity) and pay them $600 or more during the calendar year and do not file the required 1099-MISC on time.

Starting in 2017, 1099-MISC must be filed by January 31, 2017. In previous years this was not required until the end of February. This is just one of many reasons to employ an experienced professional tax service who stays up to date on current tax laws so individuals and businesses avoid unnecessary penalties and file an accurate tax return.

IRS Form W-9, Request for Taxpayer Identification Number and Certification, is provided by the government as a means for you to obtain the data required to file 1099s for your vendors. It also provides you with verification that you have complied with the law in case the vendor gives you incorrect information. It is recommended that you have potential vendors complete a Form W-9 before you engage in business with them. The W-9 is for your use only and is not submitted to the IRS.