What Are the 1099 Deadlines for Employers?
Navigate your business's annual 1099 filing requirements. This guide provides a complete overview of the process to ensure accurate and timely reporting.
Form 1099 is a series of documents the Internal Revenue Service (IRS) refers to as “information returns.” For businesses, these forms are used to report payments made to individuals who are not employees and to other businesses. Common payments that require a Form 1099 include compensation for independent contractors, rent, and payments to attorneys.
Key Filing Deadlines
The deadlines for Form 1099 depend on the specific type of form being filed. For businesses reporting payments to independent contractors, the most common form is the 1099-NEC, which stands for Nonemployee Compensation. This form has a single, firm deadline of January 31 for furnishing copies to the recipient and for filing with the IRS, regardless of whether you file by paper or electronically.
Another frequently used form is the 1099-MISC, which covers miscellaneous payments like rent or prizes. For this form, the deadlines are staggered. Businesses must send the form to recipients by January 31. However, the deadline for filing with the IRS is later; if filing by paper, the due date is February 28, and if filing electronically, the deadline is March 31. An exception exists for Form 1099-MISC when reporting payments in box 8 or 10, pushing the recipient deadline to February 17.
Information and Forms Required for Filing
Before any forms can be completed, a business must collect specific information from each payee. This includes the recipient’s full legal name, current address, and their Taxpayer Identification Number (TIN). This data ensures the information return is accurate and can be correctly matched to the recipient’s tax filings.
The primary tool for gathering this data is Form W-9, Request for Taxpayer Identification Number and Certification. It is standard practice to have every vendor or contractor complete a Form W-9 before any payments are issued. The business should keep the completed W-9 for their records but does not file it with the IRS.
Choosing the correct form is dependent on the nature of the payment. Form 1099-NEC is used exclusively to report nonemployee compensation of $600 or more. In contrast, Form 1099-MISC is used for other types of payments, such as rent, prizes and awards, or royalties exceeding $10. Official, scannable copies of these forms, along with the transmittal Form 1096, must be obtained from the IRS, as photocopies or forms printed from the IRS website are not scannable.
The Filing Process
A copy of the relevant Form 1099, typically Copy B, must be furnished to each recipient. This is most commonly done via postal mail, but electronic delivery is an option. For electronic delivery to be valid, the business must first obtain the recipient’s affirmative consent.
After providing copies to recipients, the business must file Copy A of the forms with the IRS. When filing by mail, all paper Forms 1099 must be sent with a single Form 1096, Annual Summary and Transmittal of U.S. Information Returns. This form acts as a cover sheet, summarizing the total forms and amounts reported.
For businesses filing 10 or more information returns in aggregate, electronic filing is mandatory. The IRS provides the Filing Information Returns Electronically (FIRE) system and the newer Information Returns Intake System (IRIS) portal for this. When filing electronically, a Form 1096 is not required as the electronic submission process includes the summary information.
Penalties for Late or Incorrect Filing
Failure to meet filing deadlines can result in financial penalties from the IRS. The penalty amount increases the longer the failure persists. For forms due in 2025, if a correct form is filed within 30 days of the deadline, the penalty is $60 per form. If filed more than 30 days late but before August 1, the penalty increases.
The penalties are significantly higher for intentional disregard of the filing requirements. In such cases, the penalty can be a minimum of $660 per form with no maximum limit. These penalties can apply separately for failing to file with the IRS and for failing to furnish a correct statement to the payee.
A business may get an extension of time to file with the IRS by submitting Form 8809, Application for Extension of Time To File Information Returns. This provides an automatic 30-day extension for many 1099 forms. An approved Form 8809 only extends the deadline to file with the IRS; it does not extend the January 31 deadline to furnish copies to recipients. Automatic extensions are not available for Form 1099-NEC.