Can I File a 1099 the Following Year?
Understand the compliance framework for late Form 1099 submissions, including the necessary steps for filing and the criteria for penalty relief.
Form 1099 is a series of documents the Internal Revenue Service (IRS) calls “information returns.” Businesses use these forms to report payments of $600 or more for services to individuals who are not employees, such as independent contractors. The forms are sent to both the person who received the payment and the IRS.
There are specific annual deadlines for filing these forms and providing copies to recipients. Failing to meet these deadlines can lead to financial repercussions. This article addresses the consequences of missing those deadlines and the steps for late filing.
Consequences of Missing the Filing Deadline
For Form 1099-NEC, which reports nonemployee compensation, businesses must furnish a copy to the recipient and file with the IRS by January 31. For most other 1099s, like the 1099-MISC, the recipient copy is also due January 31. However, the IRS filing deadlines for these other forms are February 28 for paper and March 31 for electronic.
Missing these deadlines results in penalties from the IRS that escalate over time. For returns due in 2025, the penalty is $60 per form if filed within 30 days of the due date. This increases to $130 per form if filed more than 30 days late but before August 1, and it rises to $330 per form if filed after August 1.
If the IRS determines you intentionally disregarded the filing requirements, the penalty is at least $660 per form with no maximum.
Information Needed to File a Late Form 1099
To file a late Form 1099, you must gather information for both the payer and the recipient. For the payer (your business), you need your legal name, address, and Taxpayer Identification Number (TIN), which is an Employer Identification Number (EIN). For the recipient, you need their name, address, and TIN, which is either a Social Security Number (SSN) or an EIN.
Recipient information should be collected beforehand using Form W-9, “Request for Taxpayer Identification Number and Certification.” It is standard practice to have a contractor complete a W-9 before you issue any payments to ensure you have the necessary details.
You will also need the total amount paid to the contractor during the tax year. For an independent contractor, this amount is reported in Box 1 of Form 1099-NEC. The current versions of Form 1099-NEC, Form 1099-MISC, and their instructions are available on the IRS website.
How to Submit a Late Form 1099
You can submit a late Form 1099 to the IRS through electronic or paper filing. For businesses filing 10 or more information returns in aggregate, electronic filing is mandatory. A good option for this is the IRS’s Information Returns Intake System (IRIS), a free online portal that is useful for small businesses.
If filing by paper, send the forms to the IRS address specified in the instructions. Paper filings must be sent with a summary document, Form 1096, “Annual Summary and Transmittal of U.S. Information Returns.” This form summarizes the total amounts and number of forms being submitted. A separate Form 1096 is required for each type of 1099 form you file.
Many states also have their own 1099 filing requirements and deadlines that can differ from federal rules. Check with your state’s department of revenue to determine if you have additional filing obligations.
Requesting a Waiver for Late Filing Penalties
After filing late, the IRS will send a notice detailing any penalties. You can request that the IRS waive these penalties if you can show “reasonable cause” for the delay. Reasonable cause is based on facts and circumstances and is evaluated on a case-by-case basis.
Examples of reasonable cause include a fire or natural disaster that destroyed records, or the serious illness or death of the person responsible for filing. Another reason is an inability to obtain the necessary records, provided you can show you attempted to get them.
To request a waiver, provide a written explanation of your reasonable cause in response to the penalty notice. Your explanation should be detailed and include supporting documentation, such as hospital records or insurance reports, to substantiate your claim.