1099 late filing penalty and filing deadlines

For filing taxes, a business must make sure to be in compliance with the multiple requirements for compliance as prescribed by the Internal Revenue Service (IRS). In this regard, the 1099 form is of immense value. This form is utilized for reporting and filing information returns on wages, salaries, and other essential allowances. Failure to file Form 1099 before the due date means a large amount of the penalty that can affect a company’s reputation. The correct information return is also essential for scenarios where deliberate filing mistakes are made. So, filing a correct 1099 form and filing before the due date are two aspects that cannot be ignored.

Whether you file electronically or enter the payee statement file on paper, it is essential to consider the importance of this form. In this piece of content, we seek to find the late filing penalties and deadlines for the form.

Understanding the Form 1099 and potential penalties for failing to file a 1099

The form incorporates a series of tax return forms that are utilized by businesses to report all payments to people who are not employees. These can be small business independent contractors, freelancing individuals, or other personnel. It is also important to note the various iterations of this form, which are discussed below:

Form 1099-misc

Specifically for payments to independent parties like contractors, service providers, rents, and other relevant incomes.

File Form 1099-nec

For payments larger than $600, These payments are from non-employee service providers as well.

• 1099-DIV is for allowances, dividends, and other financial distributions from investments.
• Form 1099-INT is used to report interest income.

Filing deadlines for 1099 form information return

For avoiding penalties, a business must fill in the required information and file the 1099 forms by the mentioned deadlines. These deadlines can differ in terms of how the form is filed. Meaning either it is file electronically or by paper. It also depends upon the specific iteration of the 1099 form.

For paper, the deadline is usually January 31st of the coming tax year for the form 1099-NEC. For other iterations of 1099, the deadline is usually February 28th.

For filing electronically, the deadline is March 31st. Although it is requested to confirm the deadline from the official IRS website.

The IRS shows no resilience in terms of late filings, so the penalties can also increase for businesses that fail to file or if there is intentional disregard.

Penalties for missing the deadline 1099 filing deadline or incorrect information

If your business fails to file the form before the deadline, this can means serious problems for your business in terms of functionalities. The IRS is liable to inflict serious fines which depends upon how late the form is filed and also the number of forms you need to file.

1099 late filing penalties for payees

The penalties for 1099 forms depend upon the duration of how long after the due date your company has submitted the form. It also depends upon how the process has been carried out. Therefore, here are the late penalty scenarios:

For 1099 forms after the due date of 30 days is as follows:

• $50 per form
• The penalty is applied if the form is filed late but within a period of 30 days

For 1099 forms within a period of 30-60 days:

• The penalty per form is $110
• Therefore, for filing within this extended period, the penalty is more strict as there is a further delay.

After a period of 60 days:

• There is a penalty of $280 per form.

Completely failing to file the form:

• The IRS, in this case, can impose a penalty of $570 per form.

Furthermore, if the IRS finds out that the late filing was an intentional disregard, then the penalty can be $570 per form with no limit on the total amount.