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November 2016 Client Newsletter

Happy Thanksgiving

Happy Thanks Giving

In the spirit of the season, we are grateful for the trusted relationships we share with all of our valued clients. Everyone at Guilmartin, DiPiro & Sokolowski is deeply thankful and extends our best wishes for a happy and healthy holiday.

Important Year-End Planning Information

Changes in 1099 Filing Deadline

We want to make you aware that the IRS has changed the filing due date of the 2016 Form 1099-MISC to January 31, 2017. Any Form 1099-MISC that reports non-employee compensation must be filed with the IRS by the last day of January.

The IRS is continuing to step up its enforcement of the requirements and increase penalties surrounding the issuance of Forms 1099 that businesses must issue to vendors for certain payments that have been made.

As a business or rental property owner your tax return has two questions that must be answered when we prepare your return:

  • Did you make any payments in 2016 that require you to file Form(s) 1099? (Y,N)
  • If "Yes", did you or will you file all required Forms 1099? (Y,N)

Generally, the Forms 1099 must be filed by your business if you make total payments during the year of $600 or more to an unincorporated business (including self-employed individuals, LLC's and partnerships) for rent, services, fees, commissions, etc.

You also must report payments totaling $600 or more that you make to attorneys, even if they are incorporated.

Penalties for Non-Compliance

If you fail to file a correct information return (Form 1099) by the due date (the forms are now due to the recipients and the IRS by January 31st) and you cannot show reasonable cause, you may be subject to a penalty. The penalty applies if you fail to file timely, you fail to include all information required to be shown on a return, or you include incorrect information on a return. The penalty also applies if you report an incorrect TIN or fail to report a TIN.

The penalty for failing to file a Form 1099 with the IRS has increased to $260 per form. There is an additional $260 penalty per form for failing to provide a vendor with a Form 1099.

Please let us know if you have any Forms 1099 that you would like us to prepare for you and we will help guide you through the process. We are also available to discuss any questions or concerns that you may have.

Year-End Tax Planning Information

We are happy to provide helpful documents for Individuals and Businesses to understand recent tax law changes that offer new tax saving opportunities, as well as the many "time-tested" tax saving techniques that continue to apply.

2016 Tax Planning Letter for Individuals - Highlights | Full Document
2016 Tax Planning Letter for Businesses - Highlights | Full Document

Please call our office at 860-347-5689 before implementing any of the tax planning ideas outlined in the planning letters listed above.