1099 Deadlines, Penalties & State Filing Requirements for 2023/2024

1099 Deadlines 2023

When are 1099s due in 2024: January 31, 2024, is the 1099 deadline applicable for Form 1099-NEC (Non-Employee Compensation). Copy A and B should be furnished to the IRS and recipients by January 31, 2024. The filing due date for other 1099 Forms is February 28, 2024, if filed by paper, and March 31, 2024, if filed electronically.

As the year 2024 approaches, the 1099 deadlines will loom closer. Being a responsible employer, it’s important to prepare and issue 1099s to the recipients and file them to the IRS responsibly without any delay.

Please note that the 1099 deadlines provided are for general information only and may change. They are not legal or professional advice. For accurate due dates for 1099 Forms, refer to General Instructions from the IRS.

1099 Deadlines for 2023

Small business owners or employers need to prepare and file the applicable 1099s to the IRS before the 1099 deadlines otherwise heavy penalties for late submissions or incorrect information will be imposed. The following table will help you to remember all the 1099 due dates for 2023 for sending 1099 forms to the contractors and for paper filing or e-filing them with the IRS.

 

What is a 1099 Tax Form?

1099 tax form, referred to as “Information Returns” by the IRS, should be sent by the company to the independent contractors or recipients to report certain types of non-employment income to the IRS such as contractor payments, stock dividends, fees, commissions, prizes, and awards in the year 2023. Since there are many types of 1099 forms, the common forms are 1099-NEC, 1099-MISC, 1099-INT, 1099-S, 1099-R, and 1099-DIV.

Penalties for Late Filing

The penalties range from $60 – $630 per missed 1099 tax form, depending on how late the forms were submitted.

The maximum penalty is a total of $1,261,000* for small businesses. In all cases, the IRS considers you to be a small business if you’ve earned an average of $5 million or less in annual revenue for the past three tax years. Learn more here.

Ensure your recipients receive their copies before the deadline with accurate information. Failure to provide correct and timely recipient copies can lead to Payee Statement Penalty. If you are required to file electronically, avoid paper filing without IRS approval to prevent Paper Filing Penalty.

New State Filing Requirements

Combined State/Federal Program for 1099-series

Alabama, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Georgia, Hawaii, Idaho, Indiana, Kansas, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, New Jersey, New Mexico, North Dakota, Ohio, North Carolina, South Carolina, Vermont, Virginia, Wisconsin.

States with no 1099-MISC filing requirement:

Alaska, Florida, Illinois, Nevada, New Hampshire, New York, South Dakota, Tennessee, Texas, Washington, and Wyoming.

States that require 1099-MISC filing, if you withheld state taxes:

Arizona, Colorado, Georgia, Iowa, Kentucky, Maryland, Nebraska, North Carolina, Ohio, Rhode Island, South Carolina, Utah, Virginia, and West Virginia.

States that require a separate 1099-MISC filing or are unclear on their filing requirements:

Iowa, Massachusetts, Oklahoma, Oregon, Pennsylvania, and Washington DC.

IRS Form 1099 Deadlines 2023/2024

1099 NEC Due DatesWhen is the 1099-NEC due?

Form 1099 NEC is used to report nonemployee compensation amounting to $600 or more during a tax year. Such payments were previously reported in Box 7 of Form 1099-MISC before the year 2020.

The filing due date for Forms 1099-NEC is January 31, 2024, if filed by paper or electronically. 1099-NEC copies are also due to the independent contractors by January 31, 2024. Learn the step-by-step process of how to file 1099-NEC effortlessly.

 

1099-MISC Due DatesWhen is the 1099-MISC due?

Form-1099 MISC is used to report miscellaneous payments amounting to $600 or more. These payments include prizes, awards, rent, gross proceeds to attorneys, healthcare payments, and royalties ($10 or more).

The filing due date for Forms 1099-MISC is February 28, 2024, if filed by paper, and March 31, 2024, if filed electronically. 1099-MISC copies with no data in boxes 8 or 10 are due to recipients by January 31, 2024. If the forms contain data in boxes 8 or 10, the deadline is extended to February 15, 2024.

1099-INT Due DatesWhen is the 1099-INT due?

Form 1099-INT is used for reporting interest income from sources like banks, US Savings Bonds, treasury obligations, bond premiums, and investment expenses.

The filing due date for Forms 1099-INT is February 28, 2024, if filed by paper, and March 31, 2024, if filed electronically. 1099-INT copies are due to recipients by January 31, 2024.

 

1099-DIV Due DatesWhen is the 1099-DIV due?

Form 1099-DIV is used to report dividends, capital gains, and cash liquidation distributions received from brokerage firms and other financial institutions.

The filing due date for Forms 1099-DIV is February 28, 2024, if filed by paper, and March 31, 2024, if filed electronically. 1099-DIV copies are due to recipients by January 31, 2024.

 

1099-R Due DatesWhen is the 1099-R due?

Financial institutions use Form 1099-R to report distributions from annuities, pensions, profit-sharing plans, retirement plans, or insurance contracts.

The filing due date for Forms 1099-R is February 28, 2024, if filed by paper, and March 31, 2024, if filed electronically. 1099-R copies are due to recipients by January 31, 2024.

 

1099-S Due DatesWhen is the 1099-S due?

Form 1099-S is employed to report gross proceeds from real estate transactions involving the sale or exchange of property.

The filing due date for Forms 1099-S is February 28, 2024, if filed by paper, and March 31, 2024, if filed electronically. 1099-S copies are due to recipients by January 31, 2024.

 

Electronic Filing Mandate in 2024

On February 23, 2023, the Internal Revenue Service introduced regulations that mark a substantial expansion of the compulsory electronic filing requirement for tax and information returns. This development entails that nearly all returns submitted on or after January 1, 2024, must be transmitted to the IRS electronically, replacing the traditional paper filing method.

According to the updated regulations, individuals or entities who file 10 or more returns of any category within a calendar year will generally be obliged to opt for electronic filing with the IRS. This marks a noteworthy shift from the prior threshold, where electronic filing was mandatory for more than 250 returns of the same type within a calendar year.

E-Filing 1099s via the IRS’s FIRE System

Step 1: Complete Form 4419 on the IRS Website

If you are filing 1099 forms electronically for the first time, you should start by completing Form 4419. Visit the FIRE (Filing Information Returns Electronically) website and create an account. This step is essential to initiate the electronic filing process.

LINK: FIRE Account Registration

Step 2: Obtain a Transmitter Control Code (TCC)

From the FIRE website, you can request an IRS Transmitter Control Code (TCC). Keep in mind that this process may take around 45 days, so it’s crucial to complete this step well in advance.

LINK: IRIS Application for TCC

1099 Extension

To avoid late filing penalties, request a 30-day extension using Form 8809 or fill out the form online at the IRS FIRE site, preferably between Jan. 1 and 31. Filling out this form allows you to secure an automatic 30-day extension. If your extension request is submitted before the due date, acknowledgments will be generated and displayed online.

For additional information about requesting extensions for filing 1099 forms, you can refer to this resource.

How to Avoid 1099-MISC Filing Penalties

  • Pay close attention to the 1099-MISC filing due dates, distinguishing between paper and electronic filing deadlines.
  • Ensure that you send the recipient copies before the due date.
  • Regardless of the number of forms, opt for electronic filing for convenience and cost-effectiveness.
  • Gather tax IDs (EIN or SSN) from payees using Form W-9 before making payments. This prevents delays caused by missing tax IDs during filing.
  • Verify that the provided tax IDs match IRS records and are free of errors. Utilize TIN checking services if necessary.
  • If you miss the filing deadline, file as soon as possible to avoid escalating penalties or get a 1099 extension.
  • Address filing mistakes promptly to prevent increasing penalties.

We hope you will be feeling prepared, informed, and ready to file your 1099s. CheckMark 1099 Software will help you file 1099s with ease and accuracy. You can have either the 1099 Print or the 1099 E-file version depending on your requirement i.e. if you are filing 10 or more information returns for the calendar year, then e-fling is a must. Else, you can paper file to the IRS for less than 10 information returns.

 

If you have any questions about the 1099 filing, you can reach us at any time. We’d be happy to help you out.