When Are 1099s Due? Key Deadlines and Penalties
Navigate key 1099 reporting deadlines, understand extension options, and avoid costly IRS penalties for late submissions.
Form 1099s are information returns used to report various types of non-employee income to the Internal Revenue Service (IRS) and to recipients. These forms ensure tax compliance for both the payer, who issues the 1099, and the recipient, who uses the information to prepare their tax return. They cover payments such as those made to independent contractors, rental income, dividends, and interest.
Key Deadlines for 1099 Forms
Meeting 1099 deadlines for furnishing forms to recipients and filing with the IRS is essential for compliance. These dates vary depending on the specific 1099 form type and whether you are filing electronically or by paper. When a due date falls on a weekend or federal holiday, the deadline shifts to the next business day.
For Form 1099-NEC, which reports nonemployee compensation, the deadline for both furnishing the form to the recipient and filing with the IRS is January 31. This deadline applies regardless of whether the filing is done by paper or electronically.
Form 1099-MISC, used for miscellaneous income such as rents, royalties, or prizes, has a recipient deadline of January 31. However, if specific amounts are reported in Box 8 (substitute payments in lieu of dividends or interest) or Box 10 (gross proceeds paid to an attorney), the recipient deadline extends to February 18. For filing with the IRS, the paper filing deadline for Form 1099-MISC is February 28, while the electronic filing deadline is March 31.
For Form 1099-K, which reports payment card and third-party network transactions, the recipient copy must be furnished by January 31. The deadline for filing Form 1099-K with the IRS is February 28 for paper filing and March 31 for electronic filing. This form is issued when payments for goods or services exceed a certain threshold, which was $5,000 for 2024 and is set to be $2,500 for 2025.
Forms 1099-DIV, reporting dividends and distributions, and 1099-INT, reporting interest income, have similar deadlines. Recipients should receive their copies by January 31. The IRS filing deadline for both forms is February 28 for paper submissions and March 31 for electronic submissions. These forms are issued by financial institutions and brokerage firms.
Requesting a Filing Extension
If circumstances prevent timely filing, an automatic 30-day extension can be requested for most 1099 forms by submitting Form 8809, Application for Extension of Time To File Information Returns. This form should be filed with the IRS before the original due date. The IRS recommends electronic filing of Form 8809 for faster processing.
While an extension may grant additional time to file with the IRS, it does not extend the deadline for furnishing statements to recipients. There are limited exceptions for extending the recipient deadline, requiring specific hardship criteria and a separate request. For instance, an additional 30-day extension may be granted in cases of catastrophic events or if it’s the company’s first year of operation.
Penalties for Late Filing
Failing to meet 1099 filing deadlines can result in IRS penalties. Penalties apply for both late filing of forms with the IRS and late furnishing of statements to recipients. These penalties are assessed per form and are tiered based on how late the forms are submitted.
For the 2024 tax year, penalties for filing or furnishing incorrect information returns range from $60 to $330 per form. If a form is filed within 30 days of the due date, the penalty is $60 per form. If it is filed more than 30 days late but by August 1, the penalty increases to $120 per form. For forms filed after August 1, or not at all, the penalty can be $310 per form.
Higher penalties apply for intentional disregard of the filing requirements. This means the payer knowingly failed to file or intentionally filed incorrect information. In such cases, the penalty can be at least $660 per form, with no maximum limit. Penalties can also arise from errors such as failing to include all required information, providing incorrect data, or filing paper forms when electronic filing is mandated.