Urgent – Crippling 1099 Penalties, Free 1099 Extension

Filed in Tax, Savings by on January 18, 2012

You will soon owe crippling 1099 penalties UNLESS YOU ACT AT ONCE. To avoid these crippling 1099 penalties you MUST send us your QuickBooks file or send 1099 forms to: 

  • Recipients by January 31, 2012
  • Internal Revenue by February 28, 2012 

If you cannot do that, let us get you a free 1099 extension on these dates. Our special software quickly uploads your QuickBooks file and gets you this extension automatically.  No one can get you a second extension on the January due date, but we often get second or third extensions on the February date for IRS 1099 filing.  Of course, Internal Revenue does not know when you give recipients 1099s.  I also never saw them react to recipient complaints unless you passed the dead line for sending 1099 forms to Internal Revenue. 

You generally need 1099 forms for each individual or partnership paid more than $600 a year for services.  This year we must segregate credit card payments from cash payments, because credit card companies report these direct.  That means we often need far more time than we did before. 

Here are the crippling 1099 penalties you face for EACH FORM NOT FILED TIMELY: 

  • Up to $250 for not giving recipients 1099s by January 31.
  • Up to $250 ADDITIONAL for not filing paper 1099s with Internal Revenue by February 28 or any extended due date, OR
  • Up to $250 for not eFiling 1099s with Internal Revenue by April 2 or any extended due date.  
  • Disallowance of deductions related to unfiled 1099s. This can vastly increase your income tax, with related penalties and interest.

Internal Revenue now has 14,000 more agents. They are targeting small businesses, for 1099s and S corp officer salaries. This will triple the number of S corp exams. Agents will increasingly demand QuickBooks files, which show all years. QuickBooks reports will then quickly highlight differences, for big extra taxes.  Avoiding this, separating a QuickBooks file by year, can cost $400 to $2,500 for each year. 

We can e-file 1099 extension requests and 1099s to avoid crippling 1099 penalties. QuickBooks alone cannot do this. Most 1099 web services and programs either cannot e-file or cannot import QuickBooks files. That is why our 1099 e-file program is the fastest and easiest way to avoid 1099 penalties, so CONTACT US NOW!        

 

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