published January, 2016

Don’t forget to gather the information for your 1099s, along with the rest of your tax information. If you don’t do your 1099s, there can be a variety of penalties, and the IRS has just doubled some of the penalties, which are based on when you file—the later, the greater the penalty. Once you’ve finished your 1099s, you must transmit “the red copy” with a Form 1096, which is like a cover sheet and summary of the 1099s you’re sending in.

Most people haven’t seen penalties imposed, but a second client got a penalty notice this last year, so it appears the IRS is starting to impose the penalties.