Outsourced Bookkeeping for CPAs:
What Are the Benefits?
Jan 25,2023
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The Internal Revenue Service requires the filing of information returns by persons making certain payments,
generally in the aggregate of $600 or more, to others in the course of a trade or business. An information return
must be filed in the following cases:
The forms must show the aggregate amount of the Form 1099 payments, the name and address of the payee, the recipientโs taxpayer identification number, and other information as noted on the form. Check and verify all taxpayer-identification numbers and addresses for accuracy.
Failure to file information returns by August 1, 2023, can result in penalties of up to $290 per return with a maximum penalty of $3,532,500 for large businesses or $1,177,500 for small businesses per calendar year. If the failure is determined due to intentional disregard, the penalty is $580 per return with no limit on the maximum penalty.
If you are required to file 250 or more returns you must file electronically. If you fail to meet this requirement, you could be subject to a penalty of $290 per return.