Miscellaneous Income: What You Need to Know for 2017 Reporting

As we are well into December 2017, we begin to prepare for upcoming 2018 deadlines. In doing so, it is important for taxpayers to note what Federal forms are due, when, and requirements exist as they pertain to the filing of Miscellaneous Income Form 1099-MISC for the 2017 tax year.

When:

If you are reporting non-employee compensation in box 7 for Form 1099-MISC, you are required to file either on paper or electronically on or before January 31, 2018.

If you are reporting all other payments, you are required to file Form 1099-MISC by February 28, 2018, if you file on paper or by April 2, 2018, if you file electronically.

Given the timing of finishing out the 2017 year and the earlier due date of January 31, 2018, that leaves little time for taxpayers to prepare data and complete Form 1099-MISC filings.

What:

If you have paid during the year the following, then you will need to file Form 1099-MISC (Miscellaneous Income):

$10 or more in royalties or broker payments in lieu of dividends or tax-exempt interest;

$600 or more in:

1. Rent
2. Services (including parts and materials) performed by someone who is not your employee
3. Prizes and awards
4. Other income payments
5. Medical and health care payment
6. Crop insurance proceeds
7. Cash payments for fish (and other aquatic life) you purchase from anyone in the business of catching fish
8. Cash paid from a notional principal contract to an individual, partnership or estate
9. Payments to an attorney
10. Fishing boat proceeds

Additionally, instructions for Form 1099-MISC advise that taxpayers are to report in box 9 direct sales of $5,000 or more of consumer products sold to a buyer for resale anywhere other than a permanent retail establishment and report in box 4 for each person from whom the taxpayer has withheld any federal income tax under the backup withholding rules irrespective of the payment amount.

There are numerous exceptions for reporting. Reference the IRS website here (https://www.irs.gov/pub/irs-pdf/i1099msc_17.pdf) for 2017 Instructions for Form 1099-MISC for specifics.

 

Allyn Contributor: Trisha Davidson

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Tips for the Taxpayer

If your business files Form 1099-MISC, stay updated with the latest information from the IRS on filing requirements, thresholds, exceptions and deadlines. Analyze your customer master file or an extract of the data related to those parties to whom you should issue the Form 1099-MISC. Often, data is wrongly entered or is missing, causing delays to the preparation of Federal reporting for Miscellaneous Income. Obtain Form W9 for each payee to ensure you have current, valid customer name, address, city, state, zip and FEIN/TIN/SSN data.

How Can We Help?

Allyn International offers tax services for companies throughout the U.S. and Canada. Allyn files Form 1099-MISC and solicits Form W9 for US taxpayers.

We can help your business maintain compliance with federal and state tax responsibilities and put procedures in place to ensure future streamlining of processes and increased data accuracy for tax purposes.

Allyn’s tax team is experienced in all aspects of Federal, state, and local tax compliance and consulting for large U.S. and global corporations. We use that experience to your advantage.

Allyn files state and local sales and use, property, and license tax returns in every US taxing jurisdiction in addition to excise tax filings such as Federal Excise Tax, Heavy Highway Vehicle Use Tax, and International Fuel Tax Agreement returns. We can manage your tax compliance, create a solid tax process, and provide audit defense for your company.

Contact us and we can provide a customized cost-effective solution to meet your company’s needs. For further information on Allyn Tax services, please contact tax@allynintl.com.

For More Information

If you are interested in learning more about this topic or other tax topics, please visit our Tax Publications under News and Events at www.allynintl.com.

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About Allyn International

Allyn International is dedicated to providing high quality, customer centric services and solutions for the global marketplace. Allyn's core products include transportation management, logistics sourcing, freight forwarding, supply chain consulting, tax management and global trade compliance.  Allyn clients range from small local businesses to Fortune 500 firms. Allyn conducts business in more than 20 languages and has extensive experience in both developed and emerging markets. Highly trained experts are positioned throughout North America, Europe and Asia. Allyn’s regional headquarters are strategically located in Fort Myers, Florida, U.S.A., Shanghai, P.R. China and Prague, Czech Republic. For more information, visit www.allynintl.com.