We excluded anyone that we only paid for merchandise when we filed 1099-MISC forms, but we now have a vendor that would like us to send him one. Do we need to submit this to the IRS and would it be considered late by the IRS?


Did you make reportable payments to the vendor who is requesting a 1099?  If it is a merchandise-only vendor, then you were correct to exclude them.  If, however, you did make some kind of reportable payments (services, rent/lease, royalty…) and those payments meet the reporting thresholds, then you must issue a 1099.

Late filing of a single 1099 is not a big deal, though the sooner you file, the better.  The penalty for late submission of a single 1099, if submitted by March 30, is only $30. What’s more, a single late filing often will not result in a penalty notice. If you do receive a proposed penalty (972CG—sent in August), you can send a letter explaining the circumstances and might get the penalty abated.

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