1099 deadline: Due dates, requirements, and penalties for 2024

Filing your tax forms before the 1099 deadline means complying with tax regulations and avoiding penalties, but it also ensures the individuals and businesses you work with can hit their tax deadlines.

What is a 1099 form? It’s a tax form to report various types of income other than wages and salaries. The deadlines can vary depending on the 1099 form you send or receive.

Let’s look at some of the common 1099 forms, their due dates, the consequences of missing deadlines, and the process for getting an extension.

When are 1099s due? 

Meeting the deadline to file 1099 forms is crucial for small business owners, especially if you want to avoid paying penalties. The IRS requires the timely submission of over 20 different types of 1099 forms. Note that small business 1099s often include just a handful of forms;, but you may still receive others depending on your business. 

Here are the deadlines for 1099 forms for paper or electronic filing (e-filing) and the deadline for when the recipient must get their copy:

When do you need to issue 1099 forms?

The responsibility of issuing 1099 forms typically falls on businesses or individuals who have made the payments. The recipient of the income, whether it's an individual or a business, should also receive a copy of the 1099 form. 

The threshold for issuing most 1099 forms is $600 in a calendar year. If you pay an individual or a business at least $600 for services, rent, or other types of income, you must issue a 1099 form to report those payments.

Different 1099 forms report different types of income. Misunderstanding what 1099 forms are and how to use them is one of the common mistakes made on 1099s. For example, if you pay a contractor or a freelancer for services, you would issue a 1099-NEC form to report their nonemployee compensation. However, if you need to report rent or attorney fee payments, you’ll need to file Form 1099-MISC. 

Form 1099-K is a tax form that small businesses receive if they use an online marketplace like eBay or if they use third-party payment applications such as PayPal. 

Here is a recap and filing deadlines of the common 1099 forms small businesses either send or receive:

Note that the deadlines for the 1099-MISC and 1099-NEC forms are different. The 1099-NEC deadline is Jan 31 for paper or e-filing with the IRS, while the 1099-MISC deadline is Feb 28 if paper filing and Mar 31 if e-filing with the IRS. The deadline for Form 1099-K is the same as the 1099-MISC form. 

Business owners can accurately report income and expenses and avoid penalties by keeping track of the key Form 1099 due dates and ensuring timely filing. 

Form 1099 late filing penalty 

Failing to meet the deadlines for filing Form 1099 can result in penalties and fees. The penalties for missing these deadlines can vary depending on the timing of the filing—and how late it is.

The Form 1099 late filing penalty is as follows based on how late you file: 

• $60 per form if you file within 30 days after the due date 
• $120 per form if over 30 days late but before Aug 2 
• $310 per form after Aug 1 or if you don’t file at all
• $630 per form for intentionally disregarding filing requirements 

To avoid these penalties, ensure timely filing. Using accounting software with built-in payroll features like QuickBooks Payroll can help make e-filing your 1099s easier. However, you can request an extension using Form 8809 if you need more time to file. 

Extensions for 1099 forms 

If you need additional time to file your 1099 forms, you can request an extension through Form 8809. Request the extension before the original due date to avoid any late filing penalties. Filling out Form 8809 is simpler than how to fill out a 1099 form:

Here's a step-by-step guide to obtaining an extension for filing 1099 forms:

1. Fill out Form 8809: Download and complete Form 8809, Application for Extension of Time to File Information Returns. This form allows you to request a 30-day extension for filing your 1099 forms. Ensure you provide all the necessary information, including your name, address, and taxpayer identification number.
2. Submit Form 8809: Once you've completed Form 8809, you can submit it by mail or electronically. If filing by mail, send the form to the address provided on the form instructions. If filing electronically, you can use the IRS FIRE site for filing information returns electronically. 
3. Provide necessary information: Along with the extension request, you must also provide a reason for needing the extension. The IRS will evaluate your request based on this information.
4. Complete 1099 forms on time: Remember that even with an extension, you can still provide the necessary 1099 forms to your recipients by Jan 31. The extension only applies to the filing deadline with the IRS. 

By following these steps and submitting your extension request before the original due date, you can avoid late filing penalties and ensure you have the necessary time to accurately complete your 1099 filings.

Tips to avoid missing Form 1099 deadlines

Missing small business tax form deadlines can result in penalties and unnecessary stress. You’ll want to create a calendar system to keep you on track:

To avoid missing a 1099 deadline, here are some best practices to follow:

1. Keep accurate records: Keep detailed records of your payments to independent contractors throughout the year. It’ll be easier to compile the necessary information when it's time to file your 1099 forms.
2. Know your specific deadlines: Different types of Form 1099 have different filing deadlines. Be aware of the specific due dates for each form. Familiarize yourself with your deadlines to avoid any last-minute rushes.
3. Set reminders: Mark important 1099 deadlines on your calendar or set up automated reminders. This step will help ensure you don't forget to submit forms on time.
4. Use automated accounting software: Consider using tax software that integrates with your accounting system. These tools can simplify the process by automatically generating and filing your 1099 forms, reducing the chances of missing deadlines.

Missing Form 1099 deadlines can lead to penalties and additional stress during tax season. 

Find peace of mind come tax time 

Tax season is stressful for individuals and business owners alike, especially when managing and navigating the 1099 deadline. However, the right strategies can help ensure a smooth tax filing process. This includes generating and filing your tax forms automatically. 

Payroll software that streamlines contractor payments, like QuickBooks Payroll, can help simplify the process.

QuickBooks Online Payroll & Contractor Payments: Money movement services are provided by Intuit Payments Inc., licensed as a Money Transmitter by the New York State Department of Financial Services, subject to eligibility criteria, credit and application approval. For more information about Intuit Payments Inc.’s money transmission licenses, please visit https://www.intuit.com/legal/licenses/payment-licenses/