1099 misc NOW?

[ljwalters]

This client is my pain in the ____. I have been calling him for weeks and now he calls me and says he has 2 1099misc to file.

I knew that in January. Is it to late to file and can they still be efiled? I know the are due in february.

Second question. I filed 1099 misc for a client several years ago an do not remember filling anything out for the state. Now on the efile form I see a question about filing form 6847. Is this form necessary or not.

Linda and Buddy

[Lion EA]

I too had a client call last Monday in a rush for me to file a 1099 and 1096. He gave me name and amount, but no SS# nor address. I told him I'd get them in the mail that day if he'd get me the info. Well, here it is a week later and I haven't heard from him since. I will mail him the 1096 to sign and mail, don't want any responsibility for it, but was willing to mail the 1099 directly to the consultant who had requested it. You can e-file through the end of March and be on time for that part of it.

I skipped the state this year as I was in a hurry and no withholding and no in-state work done by out-of-state consultants, but I remember last year having to file only the state resident 1099s with CT. Oh well, I'll wait for the letter to arrive.

[ljwalters]

Thanks Lion I thought they had to be sent by February 15 for some reason.

Linda and Buddy

[10SorTAX]

You could e-file 1099s including 1096 and states if form 6847 is signed and faxed. You have until 3/31/10 to submit them if they're e-filed.

[JohnH]

I've paper filed them well after the due date and never heard a thing back. Although there's supposed to be a penalty for a late-filed 1099/1096, I've never seen it imposed. Not saying they might not start imposing the penalty in the future, but that's been my experience. Besides, in most cases the $50 penalty is small change compared to the value of the deduction to the payer. I don't buy the idea that some tax preparers propose about failure to issue a 1099 invalidating the deduction, but it's probably worth $50 per form just to prevent it becoming an issue if an audit hapened to occur.

Since you have until Mar 31 to efile it, you're still OK. But I wouldn't hesitate to file them even after the due date if the client just can't seem to get their act together. I'd just be sure to document the reasons - maybe even have the client sign an acknowledgement that they were the reason for the late filing, just in case a penalty ever popped up.

[RitaB]

But I wouldn't hesitate to file them even after the due date if the client just can't seem to get their act together.

I agree with that. Just like our buddies who file tax returns late. Missing the deadline doesn't give them a pass. Yes, I am really grouchy...

[Hugo]

By the way.... guys how much you charge for preparing a 1099Misc?.

[Catherine]

By the way.... guys how much you charge for preparing a 1099Misc?.

By the hour, including time on the phone and with email to get the info straight beforehand, and to send e-files or paper files after. And if the client is a PITA for any reason, round your time -up- to your next break-point (quarter-hour, ten minutes, half-hour). If client wants you to mail out the individual 1099's, don't forget to add your postage costs.

[RitaB]

By the way.... guys how much you charge for preparing a 1099Misc?.

For existing GOOD clients, I charge $5 for each 1099, and $10 for the 1096. I mail all the IRS copies myself. I do not trust clients to handle it, and I sure don't want to be explaining how to mail, where, and when. Easier for me just to let my client at Something, Something, Mail Service ship them. I do about 200 1099's for 30 clients. Not tried the e-file thing. Selling points will be taken into consideration if you want to try to persuade me to get with the program.

Now, if it's an existing client who gives me the info in "stages" or something, the price goes up. You know that client, brings you half of it so you can "get started". Meaning: "I can't get this together, but if I bring you SOMETHING, I will be top priority, and it will be your burning desire to finish on time. Who cares if you don't have what you need?"

People off the street, I tell them: "Oh, you can handle this, and they have forms at Staples." If they REALLY want me to prepare them, I charge pretty good. Not my favorite thing.