When Are Your 1099 Forms Due in 2024?
Navigate the crucial timeline for reporting non-employment income. Understand the requirements for timely and accurate information returns to the IRS.
Form 1099 is an information return used to report various types of non-employment income to the Internal Revenue Service (IRS) and to the recipients of that income. Businesses and other payers use these forms to detail payments made to independent contractors, freelancers, and other individuals or entities that are not considered employees. This reporting helps maintain tax compliance for both the payer and the recipient. These forms are separate from the W-2 forms, which report wages paid to employees.
Key 1099 Deadlines for the 2023 Tax Year
Meeting the specific deadlines for 1099 forms for the 2023 tax year, due in 2024, is important for both payers and recipients. These deadlines vary based on the type of 1099 form and whether you are sending the form to the recipient or filing it with the IRS. If a deadline falls on a weekend or a legal holiday, the due date automatically shifts to the next business day.
For Form 1099-NEC, which reports nonemployee compensation of $600 or more, the deadline for both furnishing copies to recipients and filing with the IRS is January 31, 2024. This applies regardless of whether you file on paper or electronically.
Form 1099-MISC reports miscellaneous income such as rents, royalties of $10 or more, or other income payments of $600 or more. The deadline to furnish recipient copies of Form 1099-MISC is January 31, 2024, unless amounts are reported in boxes 8 or 10, in which case the recipient deadline is February 15, 2024. For filing with the IRS, the deadline is February 28, 2024, if submitting paper forms, or March 31, 2024, if filing electronically.
Form 1099-K reports payment card and third-party network transactions. The reporting threshold for Form 1099-K is $20,000 in gross payments and more than 200 transactions. The deadline to furnish recipient copies of Form 1099-K is January 31, 2024, and the IRS filing deadline is February 28, 2024, for paper filing or March 31, 2024, for electronic filing.
For Form 1099-B, which reports proceeds from broker and barter exchange transactions, the deadline for furnishing copies to recipients is February 15, 2024. The IRS filing deadline for Form 1099-B is February 28, 2024, for paper filing, and March 31, 2024, for electronic filing.
Form 1099-DIV reports dividends and distributions, while Form 1099-INT reports interest income. For both Form 1099-DIV and Form 1099-INT, the deadline to provide recipient copies is January 31, 2024. The IRS filing deadline for these forms is February 28, 2024, if filing on paper, or March 31, 2024, if filing electronically.
Form 1099-R reports distributions from pensions, annuities, retirement or profit-sharing plans, IRAs, and insurance contracts. The deadline to provide recipient copies is January 31, 2024. The IRS filing deadline for Form 1099-R is February 28, 2024, for paper filing, and March 31, 2024, for electronic filing.
Filing Your 1099 Forms
The IRS encourages electronic filing for most information returns due to its efficiency and accuracy. Paper filing remains an option for those who meet specific criteria.
Electronic filing is mandated if you are filing 10 or more information returns of any type in a calendar year. Electronic filing is done through the IRS’s Filing Information Returns Electronically (FIRE) system. To use the FIRE system, filers must apply for a Transmitter Control Code (TCC), which can take up to 45 days to obtain.
If you are not required to e-file and choose to file paper forms, you must include Form 1096, Annual Summary and Transmittal of U.S. Information Returns, as a cover sheet. A separate Form 1096 is required for each different type of 1099 form you are filing. For instance, if you are filing both Form 1099-NEC and Form 1099-MISC on paper, you would need two separate Form 1096s.
Official 1099 forms and Form 1096 cannot be printed from the IRS website for submission; they must be ordered directly from the IRS or obtained through approved tax software providers. The mailing address for paper forms, along with Form 1096, depends on your business’s location and can be found in the IRS instructions for Form 1096. When mailing, use a standard #9 or #10 envelope and avoid stapling or paper clipping the forms together.
Understanding Extensions and Penalties
If you anticipate difficulties meeting a 1099 filing deadline, you may request an extension of time. Form 8809, Application for Extension of Time To File Information Returns, is used to request an automatic 30-day extension for filing most information returns with the IRS. This extension applies to the filing of the forms with the IRS, but it does not extend the deadline for furnishing recipient statements.
For Form 1099-NEC, only one 30-day extension of time to file with the IRS is available. To request an extension for furnishing recipient copies of Forms 1099, including Form 1099-NEC, you must use Form 15397, Application for Extension of Time to Furnish Recipient Statements.
Failing to file correct information returns or furnish payee statements by the due date can result in penalties under Internal Revenue Code Section 6721. The penalty amount depends on how late the forms are filed or how quickly the failure is corrected. For instance, the penalty for not issuing a Form 1099-NEC or Form 1099-MISC by the deadline can range from $60 to $330 per form, increasing with the length of delay.
Penalties are also assessed for including incorrect information or failing to include all required information on the forms. If the failure to file or furnish is due to intentional disregard of the rules, higher penalties apply, with a minimum penalty of $660 per form, or 10% of the income reported on the form, with no maximum limit.