When Do 1099s Have to Be Mailed?

Form 1099s are information returns used to report various types of non-employment income to the Internal Revenue Service (IRS) and to the income recipients. These forms provide the IRS with details on payments made outside of traditional wages and salaries. Understanding the deadlines for mailing these forms is important for compliance and to avoid potential penalties.

General Deadlines for Common 1099 Forms

Most common 1099 forms share a primary deadline for delivery to recipients: January 31st of the year following the tax year in which the income was paid. This deadline applies to Form 1099-NEC, used for reporting nonemployee compensation, such as payments to independent contractors and freelancers. Businesses must furnish this form to recipients by January 31st.

Form 1099-MISC, which reports miscellaneous income like rents, royalties, and other payments, has a January 31st recipient deadline for most boxes. However, if specific amounts are reported in boxes 8 (substitute payments in lieu of dividends or interest) or 10 (gross proceeds paid to an attorney), the recipient deadline for Form 1099-MISC extends to February 17th.

Form 1099-INT, which reports interest income of $10 or more paid by financial institutions, and Form 1099-DIV, for dividends and distributions exceeding $10, must also be sent to recipients by January 31st. If January 31st falls on a weekend or a legal holiday, the deadline automatically shifts to the next business day.

Specific Deadlines for Other 1099 Forms

Beyond the general January 31st deadline, certain other 1099 forms have later recipient mailing dates due to the nature of the transactions they report. Form 1099-B, “Proceeds From Broker and Barter Exchange Transactions,” is used by brokers and barter exchanges to report the sale of securities, commodities, and other financial instruments. The deadline for furnishing Form 1099-B to recipients is February 17th of the year following the transaction.

Form 1099-S, “Proceeds From Real Estate Transactions,” reports the gross proceeds from the sale or exchange of real estate. Parties involved in real estate closings, such as title companies or attorneys, are responsible for issuing this form. The deadline for providing Form 1099-S to recipients is also February 17th.

Form 1099-R, which reports distributions from pensions, annuities, retirement or profit-sharing plans, IRAs, and insurance contracts, follows the January 31st deadline for recipient copies. This ensures that individuals receiving retirement distributions have the necessary information promptly for their tax filings.

Delivery Methods and Their Deadlines

Meeting 1099 mailing deadlines involves specific requirements depending on the chosen delivery method. For traditional postal mail, forms are considered timely furnished if they are properly addressed, have sufficient postage, and are postmarked by the applicable due date. The postmark date is the determining factor for compliance when sending paper copies via mail.

Electronic delivery offers a convenient alternative, but it comes with strict IRS guidelines. To furnish 1099 forms electronically, the payer must first obtain affirmative consent from the recipient. This consent must be provided in a manner that demonstrates the recipient can access the statement in the electronic format it will be provided. The electronic form must then be made available to the recipient by the same deadline that would apply to paper statements, such as January 31st for most common forms.

Recipients must be informed of their right to withdraw consent for electronic delivery at any time, and how to obtain a paper copy after providing consent. If consent is withdrawn, paper copies must be provided. The deadlines for furnishing forms to recipients are distinct from the deadlines for filing copies with the IRS, which are typically later (e.g., February 28th for paper filing or March 31st for e-filing for many forms).

Penalties for Missing Deadlines

Failing to meet the established deadlines for furnishing 1099 forms to recipients can result in penalties imposed by the IRS. These penalties vary based on how late the forms are provided and whether the failure was due to intentional disregard of the requirements. For forms furnished up to 30 days late, the penalty is $60 per form.

If the forms are furnished more than 30 days late but by August 1st, the penalty increases to $130 per form. For forms furnished after August 1st or not at all, the penalty rises to $330 per form. These penalties apply per form.

In cases where there is intentional disregard of the requirement to furnish correct payee statements, the penalty is $660 per form, with no maximum limit. The IRS also charges interest on unpaid penalties. Adhering to these deadlines is important for tax compliance for any entity required to issue 1099 forms.