Businesses can request the form from the IRS and fill it out
appropriately. It is important to sign and date the form before dispatching the
forms to the intended address. The address varies by the state depending where
the business is located. Before filing however, it is advisable for businesses
to request from their vendors and contractors submission of a Form W-9. The W-9
aids businesses in filling the 1099 Misc by providing them with legal names,
addresses and taxpayer identification number for the contractors.
Penalties & interest
If business entities making payments exceeding $600 to
independent contractors fail to file Form 1099, there is a $100 overall penalty
on each form not filed or furnished to the contractor. Moreover a 1099-Misc not
provided to the independent contractor (who is not a corporation or
partnership) by the due date, will subject the business to a fixed penalty per
return. Penalties are also incurred on returns filed either incorrectly or
bearing incorrect taxpayer identification.
Iowa Tax Extension
Iowa Tax Extension
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