Form 1099 Requirements
Current as of 3 November 2016
What is Form 1099?
Internal Revenue Service (IRS) Form 1099MISC is used to report information about various types of taxable income other than wages, salaries, and tips received by persons in the calendar year which are subject to income tax in the United States (US).
The due date to send the 1099 Form to the taxable person and to the IRS is 31 January. Late filing penalties range from US$100 per form if no more than 30 days late, US$200 per form if more than 30 days late up to 1 August, and US$520 per form if received after 1 August. Intentional disregard to file the 1099 can bring penalties of US$1,060 per form not filed.
IEEE's year end 1099 reporting requirements
Payments made to US individuals for the following reasons are subject to 1099MISC filing requirements:
- Payments made to independent contractors for services including parts and materials
- Payments of awards, grants, honorariums, and prizes
- Exceptions include scholarships, fellowships, and expense reimbursements
If cumulative payments from all sources within IEEE equal or exceed US$600, a 1099MISC is required. More than one IEEE unit may make taxable payments to the same taxable persons; therefore, it is important that each IEEE unit report to IEEE all taxable persons subject to 1099 filing requirements even though the cumulative amounts paid by the unit are less than US$600. IEEE consolidates payments to taxable persons from all IEEE units to determine if a 1099 is required to be filed.
US individuals receiving taxable payments from IEEE should complete IEEE’s substitute W-9 form. The information on this form is needed to prepare the 1099.
It is a best practice to obtain the W-9 before a taxable payment is made. The treasurers of IEEE conferences and geographic units are responsible for providing the information that is needed by IEEE to complete Form 1099MISC by 10 January but no later than 10 days prior to the due date of 31 January.
IEEE has selected NetSuite as the system to be used across the IEEE Enterprise (MGA, Standards & Conferences) to manage all financial and tax reporting needs. Please contact finance-solutions@ieee.org with questions about NetSuite.