1099 Deadlines for Lawn Care Business Owners
As we approach tax season, there are requirements that need to be met by businesses in order to be in full compliance with the law. The requirement for subcontractors is that they are sent a 1099 that summarizes the total amount of money paid out to them over the course of the year. Below is a list of requirements that would require a 1099 be sent to a subcontractor:
- Recipient is an LLC, sole-proprietor, or partnership (Corporations are not required to receive these due to their stricter tax rules) AND,
- $600 or more paid out over the year
If you have subcontractors that check the boxes to the requirements above, please have them fill out a W-9.
1099 Deadlines: Important Upcoming Dates
- January 31 of the following year when you’re reporting non-employee compensation payments in Box 7;
- February 28 if filing by paper when you’re NOT reporting non-employee compensation in Box 7; or
- March 31 if filing electronically when you’re NOT reporting non-employee compensation in Box 7.
1099 Filing Penalties
|
Large Businesses with Gross Receipts of More Than $5 Million and Government Entities
(*Average annual gross receipts for the most recent 3 taxable years) IRC 6721 & IRC 6722 |
||||
|
Time returns filed/furnished
|
Due 01-01-2011
thru 12-31-2015 |
Due 01-01-16
thru 12-31-2016 (inflation adjusted) |
Due 01-01-17
thru 12-31-2017 (inflation adjusted) |
Due 01-01-18
thru 12-31-2018 (inflation adjusted) |
|
Not more than 30 days late
(by March 30 if the due date is February 28) |
$30 per return/
$250,000 maximum |
$50 per return/
$529,500 maximum |
$50 per return/
$532,000 maximum |
$50 per return/
$536,000 maximum |
|
31 days late – August 1
|
$60 per return/
$500,000 maximum |
$100 per return/
$1,589,000 maximum |
$100 per return/
$1,596,500 maximum |
$100 per return/
$1,609,000 maximum |
|
After August 1 or Not At All
|
$100 per return/
$1,500,000 maximum |
$260 per return/
$3,178,500* maximum |
$260 per return/
$3,193,000 maximum |
$260 per return/
$3,218,500 maximum |
|
Intentional Disregard
|
$250 per return/
No limitation |
$520 per return/
No limitation |
$530 per return/
No limitation |
$530 per return/
No limitation |
|
Small Businesses with Gross Receipts $5 Million or Less
(*Average annual gross receipts for the most recent 3 taxable years) IRC 6721 & IRC 6722 |
||||
|
Time returns filed/furnished
|
Due 01-01-2011
thru 12-31-2015 |
Due 01-01-16
thru 12-31-2016 (inflation adjusted) |
Due 01-01-17
thru 12-31-2017 (inflation adjusted) |
Due 01-01-18
thru 12-31-2018 (inflation adjusted) |
|
Not more than 30 days late
(by March 30 if the due date is February 28) |
$30 per return/
$75,000 maximum |
$50 per return/
$185,000 maximum |
$50 per return/
$186,000 maximum |
$50 per return/
$187,500 maximum |
|
31 days late – August 1
|
$60 per return/
$200,000 maximum |
$100 per return/
$529,500 maximum |
$100 per return/
$532,000 maximum |
$100 per return/
$536,000 maximum |
|
After August 1 or Not At All
|
$100 per return/
$500,000 maximum |
$260* per return/
$1,059,500 maximum |
$260 per return/
$1,064,000 maximum |
$260 per return/
$1,072,500 maximum |
|
Intentional Disregard
|
$250 per return/
No limitation |
$520 per return/
No limitation |
$530 per return/
No limitation |
$530 per return/
No limitation |
Don’t stress during tax season about what your accountant may or may not need. With Turf Books, we work with you all year to ensure that your books are in order, your company is on the right financial path, and you are ready for tax season!
Learn more about our Monthly Accounting and Bookkeeping Services, CFO Services, and Tax Planning Services specializing in the Pest Control and Lawn or Land care Industry!