LATE 1099

[Marie]

Client on extension, paid rent.  Is it best to go ahead and file a late 1099 instead of IRS asking why it wasn't filed on time?

which  penalty is worse? 

[schirallicpa]

I file a bunch of late 1099s.  Especially since I asked them back in January - do you need any 1099s prepared, and they say "no".  Then in the midst of July tax prep - there she be - the contractor or self-rental or other NEC that needs filed.  So I file it.  I'm not the one that's going to be in the wrong!

[Lee B]

My understanding of this situation is that you need to advise your client of the Filing Requirements, Potential Penalties and etc.

Ultimately, it's your client decision after you are sure that they understand.

 

[grandmabee]

On 8/17/2022 at 7:38 AM, schirallicpa said:

I file a bunch of late 1099s.  Especially since I asked them back in January - do you need any 1099s prepared, and they say "no".  Then in the midst of July tax prep - there she be - the contractor or self-rental or other NEC that needs filed.  So I file it.  I'm not the one that's going to be in the wrong!

I also file them late.  I have never received a penalty from IRS or Oregon state for a late one.  Maybe in the future they will start assessing the penalty but it is correct to file them late or not.  Plus I am hoping the client will start bringing them in January.