This blog post comes from Sharon Lindsey West, the Founder and CEO of Track1099, the pioneer in online IRS Compliance. A former rocket scientist from Stanford University and previously with the US Navy, Ms. West and her team have enabled accounting professionals and businesses to manage their IRS compliance requirements for the past seven years.
Dwolla is excited to bring this informative post to our many API partners who pay out to freelancers and contractors and need to be thinking about 1099-MISCs.
In years past, the due date for 1099-MISC and W-2s to Recipients was January 31st, while companies usually had an extra two months for IRS e-file, with a due date of March 31st. The extra two months was used to get feedback from Recipients regarding any errors they saw in their 1099s.
Now, the 1099-MISC with Box 7 and W-2 are due to the IRS on January 31st, not March 31st. This means the two months of extra time is gone. See the IRS announcement.
Dwolla, along with its trusted IRS compliance partner, Track1099, wants to make sure you’re prepared for this due date change. Consider the following strategies for meeting or extending the new IRS deadline.
Meeting the Deadline
Start with the primary strategy: E-file what you have by January 31st. Then, get those E-corrections done by August 1st.
Original forms have to be e-filed by January 31st; however, you have until August 1st to make e-corrections. Do your best to have good info by January 31st, but remember, you do have 6 months to fix any errors.
Extending the Deadline
To help make this process as easy as possible, Track1099 meets the new deadline and will automatically prompt you to schedule W-2 and 1099-MISC with Box 7 by January 31st.
All other forms and 1099-MISC without Box 7 are due March 31st.
- If you e-deliver to your Recipients, they may automatically pick up their corrected forms online.
- If you postal mailed to your Recipients, you will have to make sure either you or Track1099 postal mails the correction.
Gathering Vendor SSNs and W-9s
Use Track1099’s online W-9 service to make sure all of your Vendor information is up to date.
While IRS compliance can be tricky, Track1099 is committed to making sure you easily meet these new IRS deadlines. Find us at www.track1099.com or via email at firstname.lastname@example.org.