The Information Reporting Program Advisory Committee (IRPAC) just submitted a report to IRS, and that report includes recommendations that could make dealing with 1099s much easier for Accounts Payable.
The IRPAC’s major complaint centers around the burden A/P takes on when IRS makes last-minute changes to the 1099-reporting process.
Here’s what the IRPAC recommends: Whenever IRS issues the final form or instructions for 1099-filing within six months of the filing deadline, it should give employers a six-month extension to deal with those changes.
An extra half a year would be a huge help to all A/P staffers, but that’s not all. The IRPAC also recommended that, in the case of “extensive changes,” the feds should grant an 18-month extension of 1099 filing deadlines.
We’ll keep you posted on how IRS handles these recommendations. In the meantime, you can view the entire IRPAC report here.