Some IRS Deadline Changes

Today we continue our conversation with CliftonAllenLarson principle and Farm CPA Today blogger Paul Neiffer on the topic of tax planning. He shares some IRS deadline changes

Neiffer: "Starting in 2017 there have been major changes to due dates for a lot of tax forms that are filed with the IRS or filed with the Social Security Administration. The first one that is going to apply to our farmers is that they are going to have file all of their 1099s with the IRS and all their W-2s with the Social Security Administration by January 31st. It use to be if they e-filed their returns they had until March 31st. Now they have to actually file all of those returns both with the payee and the employee and with the IRS and Social Security by January 31st. There is no extension on that. You have to be careful -- especially on 1099s — if you miss not making the deadline or actually do not issue 1099s for your payees the penalty is now $500 per 1099 that you miss. So it can add up pretty fast. 1099s are required when you pay for services — not products — but when you pay for services and the accumulative amount that you pay to any payee is greater than $600 and the payee is not incorporated. If they're an LLC, if they have elected to be a corporation than you don't send a 1099 to them."