Quickest way to file a 1099-Misc

Technical topics regarding tax preparation.
#1
chris  
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Next question for my new small contractor client. He paid a worker $5,000 last year on a variable schedule, clearly meets the criteria as a subcontractor not an employee. I asked my client did you issue a 1099 to the guy - yes I did he says. I ask him if he filed the 1099 and transmittal form to the IRS and I got the whatyoutalkinboutwillis look back from him. All he did was print a 1099 off he found on the internet, filled it in and handed it to the guy :-)

I never deal with 1099s. But now I have to. What's the easiest/fastest way for me to get one filed for this fellow? I want to make it by end of Feb to avoid any extra penalties.

thanks...
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#2
CathysTaxes  
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Chris, this year for the first time I used efilemyforms.com. They charge $3.49 per form. My first order was only one 1099.
Cathy
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#3
chris  
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Thanks Cathy, that looks pretty cool. But, this 1099 will be late -- so is there any risk to me in using this service to efile the 1099 on behalf of my client? I told him to expect a $50 fine; not sure what the probability of that is or if the fine will be levied to the person submitting (me?).
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#4
CathysTaxes  
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chris wrote:Thanks Cathy, that looks pretty cool. But, this 1099 will be late -- so is there any risk to me in using this service to efile the 1099 on behalf of my client? I told him to expect a $50 fine; not sure what the probability of that is or if the fine will be levied to the person submitting (me?).


I think the fines are now $500. You can take the efile only option which leaves your client only being late with the submission to the IRS. So far I have not been late. Two of my client's vendors were being idiots about providing their EINs. This service allowed me to efile their 1099s to meet the deadline.

If your client gets a penalty, you can request a first time abatement.
Cathy
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#5
CathysTaxes  
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I don't think you would be fined Chris. Your client gave you this information after the deadline.
Cathy
CathysTaxes
 

#6
chris  
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Thanks Cathy! I'd rather not even be in the loop on any potential fine so I may just have the client use the service.

I think for <$5M revenue the fine should be $50 unless I read this wrong. He didn't intentionally disregard the rule, he honestly did not even know about it.

https://www.irs.gov/government-entities ... enalties-2
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#7
taxea  
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chris wrote:Next question for my new small contractor client. He paid a worker $5,000 last year on a variable schedule, clearly meets the criteria as a subcontractor not an employee. I asked my client did you issue a 1099 to the guy - yes I did he says. I ask him if he filed the 1099 and transmittal form to the IRS and I got the whatyoutalkinboutwillis look back from him. All he did was print a 1099 off he found on the internet, filled it in and handed it to the guy :-)

I never deal with 1099s. But now I have to. What's the easiest/fastest way for me to get one filed for this fellow? I want to make it by end of Feb to avoid any extra penalties.

thanks...


eFile4Biz.com
 


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