I forgot to send a 1099 MISC to associate. Will they waive the penalty just once?

jgaar · #1 (**permalink**) 02-06-2010, 03:02 PM

I own a travel agency franchise and paid a friend $754 to book cruises through me. I just realized yesterday that I should have sent her a 1099 MISC. Will the IRS waive a penalty for such a small infraction? I just ordered the 1099 form online today and it won't get here for 7 to 15 days. Thanks!

TaxGuru · #2 (**permalink**) 02-06-2010, 04:10 PM

I don't think IRS will penalize you, provided you report the 1099-Misc income to the IRS. I suggest you tell your friend that you are going to issue him a 1099-Misc so that he can include that income on his personal tax return.

Go ahead and send in a 1096 Annual Transmittal Form (Red Copy) along with
a 1099-Misc (Red Form) to the IRS. The receipent copy gets mailed to the your friend. It is best to send the IRS copy asap but prior to February 28th.

jgaar · #3 (**permalink**) 02-06-2010, 04:18 PM

Will they send me the Transmittal form with the 1099s I ordered?

Quote:

Originally Posted by TaxGuru

I don't think IRS will penalize you, provided you report the 1099-Misc income to the IRS. I suggest you tell your friend that you are going to issue him a 1099-Misc so that he can include that income on his personal tax return.

Go ahead and send in a 1096 Annual Transmittal Form (Red Copy) along with
a 1099-Misc (Red Form) to the IRS. The receipent copy gets mailed to the your friend. It is best to send the IRS copy asap but prior to February 28th.

TaxGuru · #4 (**permalink**) 02-07-2010, 04:12 PM

Where did you order the Red 1099-Misc forms? Was it the IRS? I think you can pick up the Forms from Staples or Office Depot!

If not, you can have a CPA firm prepare these for you, it may cost anywhere from $100 to $150 depending on which State you are located in. The IRS can mail these to you if you request them, but it may take a little longer.