J.K. Lasser's Small Business Taxes 2013: Your Complete Guide to a Better Bottom Line

Pension and Retirement Plan Distributions

WHO MUST REPORT

You must report any distributions from qualified retirement plans to the recipient of the distributions as well as to the IRS.

Furnish Form 1099-R, Distributions from Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, Etc., and file Copy A of this form with the IRS. Submit the copy with Form 1096, Annual Summary and Transmittal of U.S. Information Returns.

WHEN TO REPORT

You must furnish a copy of the form to the distribution recipient no later than January 31 of the year following the year in which the payments were made.

You must provide the IRS with its copy no later than February 28 of the year following the year of payment. But if you file the form electronically, you have an additional month (to March 31) to file with the IRS.

If you need additional time to file, request a filing extension on Form 8809, Request for Extension of Time to File Information Returns.

WHERE TO REPORT

The filing location you use depends on where your business is located—there are 4 IRS service centers in which this information return is filed.

PENALTIES FOR NONFILING

The penalty is $25 per day for late filing, up to a maximum of $15,000.