Hi All,
Under the act signed by the President (publkic Law-111-240 "THE SMALL BUSINESS LENDING FUNDING ACT", H.R. 5297) ((ITS CALLED THE SMALL BUSINESS JOBS ACT OF 2010))
It brings up provisions of large changes in the current law. and this is one of them used as a revenue raiser.
INCREASED PENALITIES FOR FAILURE TO FILE AN INFORMATION RETURN ( 1099 MISC IS #1)
For those of you who have Sub Contractors driving your vehicles the IRS has increased the penalties for not filing or late filing of your 1099 MISC for your Drivers on time. and to mail or e-file the Original Red 1099 MISC to the correct IRS Center by them to the
These are called Information Returns.
Here is the new law: First teir penalties for filing information returns 30 days after the due date March 1, 2000 (Mailing in Form 1096 and Copy A of the !099's
Increased from $15.00 to $30.00 per 1099 and calender year maximun increased from $75,000 to $250,000
Second Teir: after 30 days and before August 1, increase from $30.00 to $60.00 per 1099 and the calender year maximun increase from $150,000 to $500.000.
Third Teir: Is increased from $50.00 to $100.00 per 1099 and a calender year increase from $250.000 to 1.5 milion.
and finally if they feel you totally disreguarded the filing of the required documents then the fine increase from
$100.00 to $250.00 per 1099 and to not exceed 5 million.
Sorry for this bad news but it is part of the new law.
Franklin Katz, RTP, ATP ,PA, PB,
Frank’s Tax and Business Service
120 York Rd
Kings Mountain, NC 28086-3151
(704) 739-4039
Fax: (704) 739-3934
e-mail: [email protected]
Providing Professional Accounting Services and Income Tax Preparation
Circular 230 Disclaimer – Any tax advice in this communication (including any attachments) is not intended or written to be used, and cannot be used, by any taxpayer for the purpose of (1) avoiding tax related penalties under the Internal Revenue Code or (2) promoting, marketing or recommending to another party any transaction or tax-related matters addressed herein.
Under the act signed by the President (publkic Law-111-240 "THE SMALL BUSINESS LENDING FUNDING ACT", H.R. 5297) ((ITS CALLED THE SMALL BUSINESS JOBS ACT OF 2010))
It brings up provisions of large changes in the current law. and this is one of them used as a revenue raiser.
INCREASED PENALITIES FOR FAILURE TO FILE AN INFORMATION RETURN ( 1099 MISC IS #1)
For those of you who have Sub Contractors driving your vehicles the IRS has increased the penalties for not filing or late filing of your 1099 MISC for your Drivers on time. and to mail or e-file the Original Red 1099 MISC to the correct IRS Center by them to the
These are called Information Returns.
Here is the new law: First teir penalties for filing information returns 30 days after the due date March 1, 2000 (Mailing in Form 1096 and Copy A of the !099's
Increased from $15.00 to $30.00 per 1099 and calender year maximun increased from $75,000 to $250,000
Second Teir: after 30 days and before August 1, increase from $30.00 to $60.00 per 1099 and the calender year maximun increase from $150,000 to $500.000.
Third Teir: Is increased from $50.00 to $100.00 per 1099 and a calender year increase from $250.000 to 1.5 milion.
and finally if they feel you totally disreguarded the filing of the required documents then the fine increase from
$100.00 to $250.00 per 1099 and to not exceed 5 million.
Sorry for this bad news but it is part of the new law.
Franklin Katz, RTP, ATP ,PA, PB,
Frank’s Tax and Business Service
120 York Rd
Kings Mountain, NC 28086-3151
(704) 739-4039
Fax: (704) 739-3934
e-mail: [email protected]
Providing Professional Accounting Services and Income Tax Preparation
Circular 230 Disclaimer – Any tax advice in this communication (including any attachments) is not intended or written to be used, and cannot be used, by any taxpayer for the purpose of (1) avoiding tax related penalties under the Internal Revenue Code or (2) promoting, marketing or recommending to another party any transaction or tax-related matters addressed herein.