Actually, you should definitely file a 2009-Misc for the 2009 calendar year. Now, with respect to the prior years 1099-Misc (2008), I would definitely file it now and inform the employee that you are going to report this income.
But, clearly, it all depends on the materiality of the amount of the 1099-Misc income that was paid to the employee in 2008 that in my opinion will determine whether or not I would file a 1096 Annual Transmittal Letter (that accompanies the 1099-Misc) to the IRS.
You may be subject to some possible penalties but, I think a sharp CPA may be able to abate these for you. |