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ExpressTaxExempt Blog

Tuesday, January 23, 2018

What Every Nonprofit Needs To Know About Form 1099-MISC


Did you know that as a nonprofit organization, you are responsible for issuing 1099 information forms just like a business? 

It’s true! Nonprofits who have paid $600 or more during the year to a non-employee for services must file and provide a 1099-MISC Form by the January 31 IRS filing deadline. Non-employee payments include fees that are paid to temporary services, consultants, performers, etc.

Helping your organization remain in compliance with the IRS, ExpressTaxExempt has gathered some very informative details regarding Form 1099-MISC that are beneficial to your organization.
 

Everything You Need To Know About Form 1099-MISC

Form 1099-MISC is used to report payments for services performed for a business by people not treated as its employees and includes miscellaneous income such as payments made to subcontractors wages, rental payments, prizes, awards, or substitute payments in lieu of dividends.

When is Form 1099-MISC Due?

You have until January 31 to file Form 1099-MISC and provide a copy to the recipient. Other deadlines for 1099-MISC include:
  • Paper file with the IRS by February 28, 2018
  • E-file with the IRS by April 2, 2018

What Information Do I Need to Complete Form 1099-MISC?

The following information is required to e-file Form 1099-MISC:
  • Payer Details: Name, EIN, and Address
  • Recipient Details: Name, EIN/Social Security, and Address
  • Federal Details: Miscellaneous Incomes and Federal Tax Withheld
  • State Filing Details: State Income, Payer State Number, and State Tax Withheld

Where Should I File Form 1099-MISC?

The best way to file Form 1099-MISC is through our sister product, TaxBandits! When you file with TaxBandits, you won’t miss the deadline! They provide all the 1099 tax returns you need online along with step-by-step e-filing instructions so you can instantly complete your returns and transmit them directly to the IRS. 

How Do I File Form 1099-MISC with TaxBandits?

Filing your 1099-MISC Form with TaxBandits is quite simple. Follow these steps and your Form will be completed in no time!
  1. Create or sign in to your TaxBandits account
  2. Select "Form 1099-MISC"
  3. Enter payer details (name, EIN, address)
  4. Enter recipient details (name, SSN/EIN, address)
  5. Enter federal details for miscellaneous income
  6. Enter state information and state taxes withheld for each applicable state
  7. Choose for form to be mailed to recipient
  8. Review, pay and transmit return directly to the IRS

Can I Make Corrections to My Form After Filing?

If a 1099-MISC Form is rejected due to errors or incorrect information being filed, our service allows you to file a new form correcting the 1099-MISC errors immediately. Simply refile the form and use the provided indicators to make the necessary corrections through our comprehensive software. 

What Happens if I Submit Form 1099-MISC late?

A penalty will be enforced if you fail to file Form 1099-MISC by the filing deadline. Penalties will also be given if you fail to include all required information, if the return contains incorrect information, or if the Form is filed on paper when it is required to be filed electronically.

Penalty amounts range from $30 to $1,500,000 and are based on the size of the organization and the date on which the form is filed.

We’re Here To Help


As always, ExpressTaxExempt is here to help your organization in any way that we can. Contact our U.S. - based support team for any other questions or concerns about filing Form 1099-MISC - we’re available at 704.839.2321, Monday through Friday from 9 a.m. to 6 p.m. EST or send a message at your convenience with support@ExpressTaxExempt.com.

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