Every year, tax season brings a variety of changes – from forms to regulations – and this year is no exception.
Beginning in 2017, for the 2016 reporting year, many important tax deadlines have changed, including the 1099 Tax deadline.
Filers will be required to send 1099-MISC recipient copies and submit the forms to the IRS by January 31, 2017 regardless of method (paper or e-file). This significant change to the deadline, previously February 28 for paper and March 31 for e-file, will undoubtedly dial up workloads and stress levels for companies.
To further complicate matters, the new filing deadline, as it relates to Form 1099-MISC, only impacts filers reporting nonemployee compensation payments in Box 7. Although the overwhelming majority of 1099-MISC filers will report information in Box 7, there is bound to be some confusion.
As you are probably aware, many filers traditionally provide recipient copies first and wait for employees or vendors to review the forms prior to sending to the IRS. This approach allowed errors to be corrected and the fixed form to be filed to the federal government, along a new copy to the recipient without creating a corrected 1099. The new reporting deadlines all but eliminate this option which we expect to result in more corrected forms being sent this year.
By planning for these new deadlines, form changes and other updates, it is less likely that you will file late and incur penalties associated with noncompliance and untimely filings. Additionally, we recommend reviewing the required data as soon as possible in order to allow extra time to edit errors or gather further information if needed.
Rentec provides all PM clients with a 1099 Tax Assistant to easily compile the necessary data to complete 1099-MISC filing online with Nelco Solutions. Additionally, customers have access to a Web Reporting Center that offers an easy correction process for 1099-MISC forms if needed and will make filing forms as simple and smooth as possible.
To learn more about your rental tax obligations check out this article, 1099 Tax Requirements for Property Managers.
For a demo or more information of the filing capabilities in your management software, contact Nelco at 800-266-2669 or email@example.com
Author Bio – Jason Jenison
Jason Jenison is the Partner Relationship Manager for Nelco. He has a combined ten years of experience in W-2 & 1099 reporting solutions, business development and customer service. Jason works closely with the compliance team at Nelco to keep up-to-date on the latest reporting regulations and industry trends to deliver valuable solutions to Nelco partners. Jason enjoys spending his free time with his wife and two kids.