did not file 1096. Is there a penalty to file late?

Kathryn · #1 (**permalink**) 03-11-2007, 05:31 PM

I work for a small interior designer and did not file 1096 by Feb 28. There is one payment to a web site designer that should have been reported by 1099. Is there a penalty to file late? Also, where would I get 2006 forms for this?

TaxGuru · #2 (**permalink**) 03-11-2007, 05:59 PM

The IRS has been known to fine $50 per 1099-Misc ommission, and a further $50 per month delay in the filing.

However, I must admit that I have never seen this imposed in my 20 years of accounting and tax practice. So, I would recommend firstly to inform the designer that you intend to file a 1099-Misc report to the IRS. Then, I would file the 1099-Misc along with a Form 1096 called Annual transmission report.

I would strongly recommend that you go to a CPA to file this as most Office Supply stores would have run out of their 1099 and 1096 supplies.