When Are Consolidated 1099s Due? What You Need to Know
Navigate investment income reporting. Discover crucial deadlines for consolidated 1099 forms and their role in your tax compliance.
Tax reporting is a fundamental aspect of financial life, ensuring accurate declaration of income to the Internal Revenue Service (IRS). Various forms exist for this purpose, with the Form 1099 series being particularly important for reporting non-employment income. These forms provide details on payments made to individuals not considered employees, and they are crucial for both the payer, who issues the form, and the recipient, who uses the information to prepare their tax return. A consolidated 1099 streamlines this process by combining information from several individual 1099 forms into a single, comprehensive statement.
What is a Consolidated 1099
A consolidated 1099 is not a single, distinct IRS form. Instead, it is a summary statement provided by financial institutions that compiles data from multiple underlying 1099 forms. These statements are typically issued by entities such as brokerage firms, banks, and investment companies to report diverse types of non-employment income. This comprehensive document provides a clear overview of a taxpayer’s investment-related income, making tax preparation more efficient.
Common types of income reported on a consolidated 1099 include dividends, detailed on Form 1099-DIV, and interest income, reported on Form 1099-INT. Proceeds from broker and barter exchange transactions, such as stock sales and capital gains, are also included via Form 1099-B. Occasionally, other income types like certain miscellaneous payments or original issue discounts may also appear on these consolidated statements.
Key Due Dates for Issuers
Financial institutions, as issuers of consolidated 1099s, must adhere to specific deadlines for both furnishing these statements to recipients and filing them with the IRS. If a deadline falls on a weekend or legal holiday, the deadline shifts to the next business day.
For most 1099 forms included in a consolidated statement, such as 1099-INT and 1099-DIV, copies must be provided to recipients by January 31 of the year following the tax year. The deadlines for filing with the IRS vary depending on the method of submission. For paper filing, the deadline for many 1099 forms (excluding 1099-NEC) is February 28 of the year following the tax year. For electronic filing, the deadline is generally March 31 of the year following the tax year. Form 1099-B has a recipient copy deadline of February 15, and an IRS filing deadline of February 28 for paper and March 31 for electronic filing.
How to Request Extensions
Financial institutions may find it necessary to request extensions for furnishing consolidated 1099s to recipients and for filing them with the IRS. IRS Form 8809, Application for Extension of Time To File Information Returns, is used for this purpose. This form grants an automatic 30-day extension to file information returns with the IRS.
The process for requesting an extension to furnish statements to recipients is separate from the filing extension. While an approved Form 8809 extends the due date for filing with the IRS, it does not automatically extend the deadline for sending statements to recipients. An extension to provide recipient copies must be specifically requested, and details for this are typically found in IRS Publication 1220. Extensions are generally granted for a period of 30 days and are often automatic if requested by the original due date.
Understanding Your Consolidated 1099 as a Recipient
Once a consolidated 1099 is received, recipients should carefully review the document for accuracy. It is advisable to cross-reference the reported income and transaction details with personal records, such as monthly brokerage statements, to identify any discrepancies. This diligent review helps ensure that the information used for tax return preparation is correct.
If a consolidated 1099 is not received by the expected deadline, which is generally January 31 for many components, the recipient should first contact the issuing financial institution. If the form remains unavailable or if the financial institution cannot resolve a discrepancy, the recipient can then contact the IRS for assistance in obtaining the missing document. The information provided on the consolidated 1099 is directly used to complete various parts of the income tax return, such as Schedule B for interest and dividends or Schedule D for capital gains and losses.