1099 Misc

[S T]

I have always paper filed the 1099 Misc/1096 reports, but just received info on 6 different clients that are dragging their feet. And guess what 2/28/11 (tomorrow) is the deadline for paper.

I have never efiled the 1099 Misc reports in before, but have found several sources to accomplish the task, so from what I understand that will allow me until 3/31/11 to file, correct? Is there anything that I need to file in by 2/28/11 such as the 8809 extension request?

Or if I simply efile these 1099 Misc information returns by 3/31/11, the client and "I" are okay for timely filing???

Grrr!

Sandy

[JohnH]

Do you have a postage meter?

But on a more serious note, I think it depends upon the number of 1099 forms the client needs filed. If each client only has a few, you can probably mail them after 2/28 and there won't be a penalty. In any case, it should be easy enough to tell them that you can't guarantee there will be no penalty, but if there is one they will have to pay it because they got the info to you too late for timely filing.

I checked into using an outside service a couple of years ago for a client who had a couple of hundred 1099's, but I found it too expensive. I told him we will stick to paper unless he exceeds 250.

[S T]

Well

I have Net Stamps I thought of that - but I found a service that for a company for under 10 forms was doing public service for a business and would file for free - They are listed on the IRS Website.
Figured I would try them - if for some reason I didn't receive the confirmations, then in a week go to one of the services that charges around $ 3 -$ 4 and refile.

I have one client that has 5 Companies that each has 1 form maybe 2
Then I have 2 HOA that are dragging their feet with 1 form each
Then another Company that has about 6 forms

I just don't feel up to driving myself crazy between now and Monday. They have all had plenty of time

Sandy

[JohnH]

So except for the 6-form client, each client is risking $50 to $100 at most, IF a penalty is assessed. My guess is there won't be a penalty, and even if there is one, the tardy client should pay it. I don't think it's worth your time to do anything but crank out paper forms, send them in, and forget about it. You could also add $100 to each of their invoices to cover the penalty if it's assessed ( not a bad plan IMO - they need to pay you extra for having to deal with it) I would probably concentrate on the 6-form client just because that penalty would be painful enough for him to try and get you to cover all or part of it, even though you shouldn't be expected to do so.

I had a client leave a message on my voice mail today (Sunday) asking about blank red 1099 and 1096 forms. Wanted to know if I could meet them at the office to get the forms. I called back and told them "no", and to come by the office tomorrow. They asked about penalties if they couldn't get them filed by tomorrow and I just said "I don't know what might happen". What I wanted to say was 1) I don't care, and 2) why are you worrying about penalties at this late date?

Am I getting cynical? I want to tell them that when it comes to this stuff I'm a feeling person, but not a caring person. What I mean by that is, I really don't care, but sometimes I feel bad about not caring...

[geekgirldany]

I've had several that I prepare 1099s late each year. Same ones every year. I am not tracking them down or calling to remind them. They know. So far they have never got a penalty but if they do it is on them.

I've quit the "running around like a chicken with it's head cut off" to get things finished for late clients. So far this tax season has been less stressful because of it.

[S T]

Well

I am not running around to accomplish this task, but am wondering about the efile and I can still accomplish timely filing if done between now and 3/31/11 - That is what I read, but I have never efiled these 1099/1096 forms.

Yes, I know John H and Dany - I am still "babysitting"

Obviously the client is going to be billed for the cost and that could be far less than the "maybe" penalty.

Anyone out there that knows about efiling the 1099/1096 forms?

Thanks,

Sandy

[erchess]

Contact Info

I would appreciate contact info or any help finding the free company and several that charge three to four bucks per 1099 because to me efiling is the convenient way. I talk to the pastor of a church tomorrow night about what his church needs to be doing for him. When are Forms W2 and the associated paperwork due? This is a church with only one person who got paid.

Side note - the church had five pastors in its first year or two of existence and then this guy who is also a full time school board employee came in and he's had the church for twelve years. Using a professional who has since retired and gone to parts unknown for the first several years, and filing on his own after that, the pastor filed a Sch C listing the entire Sunday collection as income, and then listing all of the expenses including his cut but without giving himself a W2 or 1099M. Since he invariably contributed to the church out of his money, he invariably reported a loss which reduced his other income. Strangely enough, he got a letter about 2009 and paid without getting help a tidy sum. Now he has elected to interview me as a possible person to straighten his mess out.

[KC-CPA]

1099 MISC Corrections

Completed 1099-MISC for client in January and sent out, also got 1096 completed and ready to mail. Client notified me that the numbers are not right for one client because he called and told him so. Client wants new 1099. I asked more questions as to why the number was wrong that he provided. Turns out the client has the issue on several of them.

Here is the question. He has not mailed in the 1096 or copies of 1099's so technically has not filed. them. We have new information and will resend the correct amounts to every. Since the 1096 and 1099's have not been filed by the client, should the revised 1099's be marked corrected. If I don't mark them corrected, could be confusing to other tax preparers.

At least its not a year later, but... then I would know to mark them corrected.

Thanks.

[Burke]

If you can retrieve the incorrect 1099's, I would do so. Then the second set won't have to be marked "corrected." Usually that is only done for the IRS's benefit (and the client's) when they have actually been mailed/filed with the IRS.

[RitaB]

That would be good

That would be good, but I would just send forms marked "Corrected" to the recipient and not mark them "Corrected" to IRS. OR, staple a sticky note to them or something saying, "Use this one, not the other one. Throw the other one away." I swear I had a tax client come in Friday worried to death because she had the Corrected form but couldn't find the original so I could explain it to IRS.