Late Filing Costs – File 1099 Form on Time
When it comes to filing taxes, most people file in a timely manner their own personal income tax. Those who operate on a separate basis as independent contractors often forget to include the Form 1099. The problem is that the IRS looks at filing the 1099 Form just as serious as when you file your personal income. You need to make sure that you include the Form 1099 with your personal income tax. The Form 1099 includes extra money that you earned during the year as a small business or an independent contractor. This is earned income that you must pay taxes for because the person you earned the money from does not take out any taxes.
When you fail to file your Form 1099 on time or not at all the IRS looks very dimly on the situation. You will be fined and you could pay out huge amounts of penalty fees right a way. You will of course owe for the interest that accumulates because of not filing your taxes properly. Unfortunately, if you fail to file the Form 1099 along with your personal taxes then you have not properly filed taxes making it possible for you to be fined for the whole amount. You could end up paying out thousands of dollars to the government for not filing your Form 1099 when your taxes come due. In some cases, people file their taxes late and this could cause them to pay out late fees and/or penalties. The penalties could be at a reduced rate if they have a good reason for their late filing. You must be able to prove to the IRS why you are filing late.
It is best just to ask for an extension from the IRS to avoid the risk of being charged any late fees or penalties. The late filing fees can be devastating as an example you could end up paying as much as $35,000 if you are classified as a small business. In some cases when the amount is, low then you would pay $15 for a thirty-day late file. In either case, it is always wise to file on time or at least ask for an extension. The best way to handle your taxes is to have a good accounting system in place so at the end of the year it will not be complicated for you to file your taxes in timely manner.
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