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The due date for 1099 forms depends on the type of 1099 you are filing. Generally, Form 1099-MISC is due to the IRS and to the recipient by January 31 of each year. For 1099-NEC, which replaces Form 1099-MISC for reporting nonemployee compensation, the deadline is also January 31. If you are filing tax forms electronically, the deadline is March 31. It's important to note that if you file late or do not file at all, there may be penalties that apply. The IRS may assess a penalty of up to $50 per form if you fail to file a correct information return by the due date and an additional penalty of up to $530 per form if you intentionally disregard filing requirements. If a payment was made in error, then it should be reported as income on Form 1040 Schedule 1 or as other income on Form 1040 Schedule C.
Are there any exceptions to the deadlines?
Are there any exceptions to the deadlines? In some cases, the IRS may allow an extension of time for filing 1099s. For example, if you are unable to meet the original filing deadline due to circumstances beyond your control, such as a fire or natural disaster, you may be granted an extension. Additionally, if you need more time to obtain required taxpayer identification information from the recipient (such as their social security number), you may be eligible for an extension. If granted additional time, it is important to note that all forms must still be filed by the extended due date in order to avoid penalties.
What happens if I miss the deadline?
If you miss the due date for filing 1099s, you may be subject to penalties. The amount of the penalty depends on when you file the forms; the sooner they are filed, the lower the penalty. Additionally, failing to file a 1099 or filing an incorrect or incomplete one can result in a penalty of up to $530 per form. In some cases, if there is intentional disregard for filing requirements or if fraud is involved, criminal penalties may apply. If you have missed the due date for filing 1099s it is important to contact the IRS as soon as possible and take steps to correct any mistakes that may have been made in order to minimize penalties.
Types of 1099 Forms
The IRS requires certain businesses to report payments made to independent contractors or other non-employees by filing a 1099 form. There are several types of 1099 forms, each with its own purpose. The 1099-MISC is the most common and is used to report payments of $600 or more for services performed by individuals or companies, while the 1099-INT is used to report interest earned on investments like bonds, CDs and savings accounts. The 1099-DIV is filed when dividends of $10 or more are paid out by corporations, while the 1099-G is used to report payments from state and local governments for unemployment compensation, lottery winnings or other government benefits. Finally, the 1099-R is used to report distributions from pension plans, 401(k)s and other retirement plans.
The New Form: 1099-NEC
Form 1099-NEC is a new form for tax year 2020 that must be used to report payments of $600 or more made to individuals or companies for services performed. The due date for sending out forms to recipients is February 1, 2021, and the due date for filing with the IRS is March 1 (or March 31 for electronic filing). Businesses should make sure they are using the correct version of Form 1099-NEC when reporting payments made during 2020, as there is no automatic 30-day extension to file this form. Additionally, nonemployee compensation may be subject to backup withholding if a payee has not provided a taxpayer identification number. It's important to review all instructions carefully and contact a qualified professional if needed.
How 1099-B and 1099-S fit in
Form 1099-B and 1099-S are forms used to report different types of earnings received by taxpayers during the year. Form 1099-B is for transactions from brokers, such as stock sales. Form 1099-S is for real estate transactions when closing a sale in the calendar year.
Brokerage firms should send these forms to taxpayers by January 31st and they must be filed with the IRS by February 28th if paper filing, or March 31st if filing electronically. It's important to use the correct form when filing and contact a qualified professional if help is needed understanding what information needs to be reported.
What Penalties Might I Hit if I Miss My 1099 Deadlines?
If you file your 1099 forms late, you may be subject to penalties. The penalty is $50 for each form that is filed late and the amount increases if filing more than 30 days past the due date. Additionally, interest will also accrue on top of any fines or penalties you may incur. Careful! The maximum penalty can get pretty steep, in hundreds of thousands of dollars to more than a million dollars, depending on the size of your business.
To avoid incurring any fees, it's best to make sure your 1099 forms are filed on time. If you find yourself scrambling to get everything completed before the deadline, consider filing an extension with the IRS so that you can have more time to submit all necessary paperwork.
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Frequently Asked Questions
When are 1099-NEC and 1099-MISC forms due to recipients and to the IRS?
Both Form 1099-NEC and Form 1099-MISC are generally due to recipients and to the IRS by January 31 of each year. If you are filing electronically, the deadline extends to March 31. It's important to note that Form 1099-NEC has no automatic 30-day extension available, so meeting the original deadline is especially critical for that form.
What are the penalties for filing a 1099 form late or not at all?
The IRS may assess a penalty of up to $50 per form if you fail to file a correct information return by the due date, and that amount increases the longer you wait beyond 30 days past the deadline. If you intentionally disregard filing requirements, the penalty can reach up to $530 per form. In serious cases involving fraud or intentional disregard, criminal penalties may also apply, and total maximum penalties can reach hundreds of thousands to over a million dollars depending on the size of your business.
What types of 1099 forms exist, and what does each one report?
There are several types of 1099 forms, each serving a distinct reporting purpose. Form 1099-MISC reports payments of $600 or more for services, 1099-INT reports interest earned on investments, and 1099-DIV is filed when dividends of $10 or more are paid by corporations. Form 1099-G covers government payments like unemployment compensation, while 1099-R reports distributions from pension plans, 401(k)s, and other retirement accounts.
What are the deadlines for filing Form 1099-B and Form 1099-S?
Form 1099-B is used to report broker transactions such as stock sales, while Form 1099-S covers real estate transactions closed during the calendar year. Brokerage firms must send these forms to taxpayers by January 31, and they must be filed with the IRS by February 28 if filing on paper, or by March 31 if filing electronically.
Can a filer get an extension on the 1099 deadline, and under what circumstances?
The IRS may grant an extension of time to file 1099s in certain situations, such as when circumstances beyond your control—like a fire or natural disaster—prevent you from meeting the original deadline. An extension may also be available if you need additional time to obtain required taxpayer identification information, such as a recipient's Social Security number. However, all forms must still be submitted by the extended due date to avoid penalties, and it's worth noting that Form 1099-NEC does not qualify for an automatic 30-day extension.
About the Author
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Nick Charveron is a tax professional at IRS.com with expertise in U.S. federal and state tax law. Their articles are written to help taxpayers understand complex tax topics in plain English.