Not-for-Profit Enews Update: Information on Form 1099-MISC (Part 1)

January 9, 2014

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Note: This article begins a three-part series discussing Form 1099-MISC. Over the next two weeks we will briefly review the most commonly completed boxes on the form.

Each year about this time, we are asked a lot of questions about the filing requirements of Form 1099. The Form 1099 consists of a series of informational returns that are aimed at trying to catch the inadvertent omissions of reporting taxable income. Of all the forms in the 1099 series, the 1099-MISC, Miscellaneous Income, is the most commonly filed 1099 form by nonprofit organizations. Below are some of the basic filing requirements of the form.

The Basic Requirement

You are required to file Form 1099-MISC, if during the calendar year your nonprofit organization paid any individual, partnership, or estate at least $10 in royalties; $600 in rents, prizes and awards, compensation for services, or medical and healthcare payments; or you paid an attorney or law firm $600 or more.

The Filing Deadlines

Form 1099-MISC for 2013 must be furnished to the payment recipient by January 31, 2014. The due date for filing with the IRS is February 18, 2014, if there is an amount being reported in box 14; February 28, 2014, if filed on paper; and March 31, 2014, if filed electronically. (Filing 250 or more returns and you are required to file electronically.)

Penalties for Failure to File

The penalties can add up quickly for not filing a complete and accurate Form 1099-MISC by the due dates noted above. The penalties are $30 per form if it is filed correctly within 30 days; $60 per form if it is correctly filed more than 30 days after the due date, but by August 1; and $100 per form if filed after August 1 or not filed.

If you have any questions regarding the article above or any other issue affecting your not-for-profit organization please contact your Blue & Co. advisor or e-mail us at or call us at 800-717-BLUE.