The deadline for filing 1099 forms depends on the type of form.
For example, if you’re e-filing Form 1099 Nec, it’s due by January 31. For most other 1099 forms, the deadline is February 28 for paper filing and March 31 for e-filing.
We’ve got you covered with more details in our article, breaking down the specific due dates for each type of 1099 form.
General Deadline Overview
As we’ve seen earlier, there are two ways to submit 1099 forms: electronic filing and paper filing. Each method has its own deadline, depending on the type of form you’re dealing with.
But what’s the difference between the two? Paper submissions are exactly what they sound like. Physical forms mailed to the IRS.
These have a slightly earlier deadline because they require manual processing. On the other hand, electronic submissions, or e-filing, are sent online, giving you a bit more time to file.
Now, let’s talk about the forms themselves.
Types of These Forms
The 1099-NEC and 1099-MISC are used for different types of payments, each serving a specific purpose.
1. 1099-NEC
This one is for non-employee compensation.
If you’ve paid an independent contractor or freelancer at least $600 in a year, this is the form you’ll need. It’s how the IRS tracks payments made to people who aren’t traditional employees. Since these payments aren’t taxed upfront, the IRS wants them reported on time to ensure everything adds up.
It’s simple. If you hired someone for their services and they’re not on your payroll, chances are this is the form you’ll be filing.
2. 1099-MISC
The 1099-MISC is a bit more flexible.
It’s used for all kinds of payments that don’t fit under the NEC. For example, if you’ve paid for rent, royalties, or even given out prizes or awards, this is the form you’ll use. It also applies to certain legal or medical payments.
Unlike the NEC, this one isn’t just for contractors.
It’s more about capturing other types of income that might not get reported otherwise. Because it covers so much, the filing timelines are a little different too.
Form-Specific Deadlines
For the 1099 NEC, the deadline is strict. January 31 for both paper and electronic filing.
This form reports payments to contractors, and the IRS prioritizes it to ensure everything matches up on tax returns. Since contractors don’t have taxes withheld, the IRS needs this information early to catch any discrepancies.
For the 1099 MISC, things are a bit more flexible. The deadline is February 28 for paper filing and March 31 for e-filing.
Why the extra time?
It’s because the payments reported, like rent or royalties, aren’t as urgent for immediate verification. Plus, e-filing speeds up processing, so the IRS gives you a little breathing room.
These deadlines aren’t random. They’re designed to keep the tax system running smoothly. Filing on time helps avoid penalties and ensures everything stays on track.
Penalties for Late Filing or Inaccurate Forms
Missing deadlines or making mistakes can come with penalties. Let’s break them down so you know what’s at stake and how to avoid trouble.
➡ Late Filing Penalties
The IRS doesn’t take late filings lightly. Here’s how it works:
⦿ 1-30 Days Late: If you file within 30 days of the deadline, you’ll pay $60 per form. It might not seem like much, but it adds up quickly if you’re late on several forms.
⦿ 31 Days to August 1: Filing after 30 days but before August 1 bumps the penalty to $120 per form. The longer you wait, the steeper the fine.
⦿ After August 1 or Not Filed at All: Forms submitted after August 1 or not at all will cost you $310 per form. That’s a hefty price for missing paperwork.
➡ Inaccurate Information
Mistakes on 1099 forms, like incorrect amounts, names, or taxpayer identification numbers (TINs), also come with penalties.
⦿ Per Mistake: Each incorrect form can result in a $50 penalty.
⦿ Intentional Errors: If the IRS suspects you knowingly provided false information, the penalty goes to at least $560 per form.
➡ Failure to Provide Recipient Copies
Don’t forget you’re also required to send 1099 copies to the recipients. If you miss this, penalties can apply here too.
It’s important to ensure your contractors or other payees receive their forms on time so they can handle their taxes.
➡ Maximum Penalties
The total penalties you can face depend on the size of your business.
For small businesses (less than $5 million in revenue), the maximum penalty caps at $1,177,500 annually. Larger businesses face much higher caps, going up to $3,532,500.
Tips to Avoid 1099 Filing Penalties
Staying organized is your best defense. Have these forms, mark your calendar, double-check the information, and e-file if possible. It’s faster and reduces the chances of errors.
Filing accurately and on time saves you money and keeps the IRS off your back.
What Happens After Filing?
After you’ve submitted your 1099 forms, the IRS takes it from there.
They use the information to match what you reported with what your contractors or vendors claim on their tax returns. If everything lines up, you’re good to go. But if there’s an issue, you might hear from the IRS.
Here’s how things play out:
⦿ IRS Matches Records:
The IRS cross-checks your forms with the recipient’s tax filings. Any differences could flag errors or lead to follow-ups, so accuracy matters.
⦿ Contractors Rely on Them:
Your contractors use these forms to file their taxes. Mistakes like incorrect amounts or missing forms can cause problems for them—and bring questions back to you.
⦿ Corrections Can Be Needed:
If the IRS spots an issue, they’ll notify you. Timely corrections are key to avoiding penalties.
Keeping detailed records of what you filed, including submission dates and copies of the forms, is a simple way to avoid headaches later.
How to Get 1099 Forms
The easiest way to get your 1099 forms is through PaystubHero.
Our platform allows you to instantly generate accurate forms with minimal effort. Whether you’re filing for a few contractors or many, PaystubHero streamlines the process, ensuring compliance and saving you time.
No need to search for forms or worry about formatting. we’ve got it covered. Simply input your details, and your forms are ready to go. It’s quick, reliable, and hassle-free.
FAQs
Here are some common questions about 1099 due dates:
