Form 1099 MISC Filing, Penalties & Deadline Explained!

What is Form 1099-MISC?


Form 1099-MISC is used to report the year-end summary of income from miscellaneous non-employee sources. This information return covers the details such as rent, royalties, self-employment and independent contractor income, crop insurance proceeds and several other kinds of miscellaneous income to be reported to the IRS as well the recipient.

Whom should Issue a copy of 1099-MISC Form?


Check the following situation to issue a copy of 1099-MISC Form to your recipients and file the same information with the IRS.

If you had,

  • paid a contractor $600 or more during 2019.
  • paid at least $10 in royalties (reported in box 2) or broker payments in lieu of dividends or tax-exempt interest (reported in box 8).
  • paid out $600 or more in rents, services (which includes parts and materials), prizes and awards, other income payments, medical and health care payments, crop insurance proceeds, cash payments for fish you purchase from someone who is in the business of catching fish, or payments made from a notional principal contract to an individual, partnership or estate.
  • paid $600 or more to an attorney.
  • Made payments concerning fishing boat proceeds.

When is 1099-MISC 2019 due for?

Both the recipient copy as well as the filing deadline is on Jan 31st, if there’s data in box 7 for non-employee compensation, else you might only have the recipient copy deadline due by this date.

If you’re filing 1099-MISC Form through paper Form and there’s no data in Box 7, you’ve got until Feb. 28, 2020 to file a 1099-MISC Form to the IRS.

If you’re electronically filing 1099-MISC and there’s no data in Box 7, you’ve got time until April 1, 2020 to file your 1099-MISC Form with the IRS.

If you paid out any substitute payments in lieu of dividends (box 8) or any proceeds to an attorney (box 14), you have until February 15 to get these forms to the recipient.

What are all the information required to File 1099-MISC Form?


If you're ready to File 1099-Misc Form, you need a valid Tax ID number and also your recipient’s Tax ID number.

The information you would need to File 1099-MISC are

  • Payer’s name & address along with the TIN
  • Recipient’s name & address along with the TIN
  • Rental, royalties or other income information provided to the recipient
  • Withheld information, if any, Including Federal/State tax withheld

You can get the recipient's name, address and taxpayer ID using W-9 Form.

Note: For certain states its mandate to send the copies to the states also and some states requires direct state filing for the withheld information. Click here to check with the 1099 state filing requirements.

what are the penalties for not filing Form 1099-MISC?

If you fail to file Form 1099-MISC form before the due date, you may be subjected to penalty, based on the date you filed the return. You may receive penalty letter from the IRS for late filing. No interest will be charged on your penalty if you make the payment on time.

The penalty rates for late filing are:

  • (i) $50 per return ($186,000* maximum) if filed within 30 days (by March 30 if the due date is February 28).
  • (ii) $100 per return ($532,000* maximum) if filed more than 30 days after the due date, but by August 1. (iii) $260 per return ($1,064,000* maximum) if filed after August 1 or the filing is not done.
  • If you fail to provide 1099-MISC statements to payees on time, you may also incur a separate penalty. The amount is based on when you furnish the correct statement.

Click here to learn more about the 1099-MISC penalties.

How can you simplify the filing process?


Electronic filing is simpler and efficient way to file your 1099-MISC with IRS. E-filing also has more advantages than paper filing. Look for e-file providers to handle your 1099-MISC filing online. Also, you can save time, avoid last-minute rush and Form errors. When you prefer to e-file you will be notified by the respective provider regarding the IRS acceptance status of your 1099-MISC return.

Also you can save time and avoid last minute rush and Form errors. When you prefer to e-file you will be notified by the respective provider regarding the IRS acceptance status of your 1099-MISC return.

TaxBandits, An IRS authorized e-file provider

If you prefer to e-file 1099-MISC Form, then the wise choice is to go with TaxBandits.com. TaxBandits is a trusted source for e-filing 1099, W2, 940, 941, 1095, and 990 returns online with the IRS. You can simply manage all your year-end filing with TaxBandits and you will be provided with the various filing features which simplify your filing process. Visit https://www.taxbandits.com/1099-forms/efile-form-1099-misc-online/ to know more about the filing of IRS 1099-MISC Form

Features that make you choose TaxBandits for your Year End Filing

  • You can print and postal mail your 1099-MISC Form copies to your recipients right from your TaxBandits accounts.
  • As TaxBandits supports record keeping, you can always get back to access your returns at anytime for the copies and print it anytime.
  • TaxBandits also participate in the CF/SF program where it simplifies the state filing requirements of most states.
  • Affordable pricing that saves you filing cost. You can complete your 1099-MISC Form & e-file it with the IRS for the Form filling cost.
  • Also Tax bandits supports Form Correction where you can correct and re-submit your previously filed Form again with the IRS.
  • If you are an bulk filer, you are provided with the templates to e-file your 1099-MISC forms in bulk.
  • And if you are tax professional or payroll service provider having a huge client database to file with, you can make use of the API integration from Tax bandits to file returns directly from your HCM/payroll software.

Steps to File Form 1099-MISC online with TaxBandits

  • Create or sign in to your TaxBandits account
  • Select "Form 1099-MISC" from the list of Forms
  • Enter payer details (name, EIN, address)
  • Enter recipient details (name, SSN/EIN, address)
  • Enter federal details for miscellaneous income
  • Enter state information and state taxes withheld for applicable state
  • Review, pay and transmit return directly to the IRS
File 1099-MISC Now

1099-MISC Form Extension


For whatever reason, if you are extremely busy, or you're just planning ahead to file your 1099-MISC Form and need more time to file, you can gain a 30-day extension by simply filing extension Form 8809 by the actual due date of your 1099-MISC Form.