When are 1099s due? 1099-NEC, 1099-MISC and additional forms.

• Position: Nuts & Bolts

Not all businesses will need to file 1099 forms. However, for those that do, it's important to meet the IRS deadlines, whether paper filing or e-filing. Not doing so and failing to file for extensions will land you fines and draw unwanted attention. The due date for 1099s will vary based on the form you need to use and how you file. The Internal Revenue Service has set different dates for many forms based on whether you use traditional paper or electronic filing.

Let's look at what forms you may need to file and when the due dates are for tax year 2022. As a reminder, the previous tax year's forms are due in the following calendar year, so the following dates will fall in 2023.

What are 1099s used for?

As a reminder, 1099 forms are used for non-employee compensation. For most businesses, this will apply to freelancers, independent contractors and others who work for you but are not primarily employed by you. Compensation paid to your employees is handled on Forms W-2.

Common 1099 forms and due dates

First, we'll look at the most common 1099 forms.

Form 1099-NEC

Form 1099-NEC was a new form released to use in place of Form 1099-MISC for non-employee compensation. It is used to report payments of at least $600 to freelancers and independent contractors.

This form is due to both the IRS and the recipient by January 31.

Form 1099-MISC

1099-MISC: Miscellaneous Information (sometimes referred to as miscellaneous income) covers a wide variety of types of compensation.

In most cases, this form is due to the IRS by Feb. 28 if filed by paper and March 31 if e-filed. It is due to recipients by Jan. 31, except when used for attorney fees or substitute dividends and tax-exempt interest payments. In that case, it is not due to the recipient until February 15.

While most follow the same deadlines as 1099-MISC, there are some variations in due dates, so consult the IRS website to double-check deadlines.

File 1099s correctly and on time to avoid penalties

You'll want to get your 1099 forms submitted correctly and by the due date, as you may be subject to a penalty for failing to do so. If you do not make the deadline, you may still complete a late filing; however, you will be subject to penalties based on the filing date.

Penalties may apply:

* If you fail to file timely.

* If you fail to include all information required on a return.

* If you include incorrect information on a return.

* If you file on paper when you were required to file electronically.

*...