After the deadline, but within 30 days
$60 per form
After 31 days - August 1st
$120 per form
After August 1st, or not at all
$310 per form
Intentionally not filing
$630 per form
1099 Forms › What is Form 1099-MISC and How Does It Impact You?
IRS Form 1099-MISC is an information return utilized to report various payments made to self-employed individuals for their work during the calendar year. The business owner/payer is responsible for preparing and submitting Form 1099-MISC to the IRS for each individual.
After reporting payments, the payer must provide the recipient with copy B of Form 1099-MISC.
Interested in filing Form 1099-MISC? Create a free account and file 1099 in just a few easy steps. Receive real-time updates about your filing status.
A business owner/payer is required to file Form 1099-MISC at the end of the tax year if the payment made to the contractor(s) meets the following criteria:
Complete the Payer Details section. This includes:
Complete the Recipient Details section. This includes:
Select this box if the following conditions apply to you:
Learn more about Form 1099-MISC Instructions to file Form 1099-MISC.
Form 1099s must be distributed to the recipient on or before January 31st
Paper filing must be filed with the IRS on or before February 28th
Form 1099s must be e-filed directly to the IRS on or before April 1st
Visit our deadlines article to learn more about Form 1099 due dates.
Note: If the filing deadline lands on a Saturday, Sunday, or legal holiday, the due date will automatically be extended to the following business day.
The exception to these deadlines above is for filing Form 1099-NEC. Depending on the filing method, there is a month's advancement on the recipient and IRS copies being January 31st. Get started with BoomTax and file your 1099 with the IRS, state, and mail recipient copies on time. Get Started Now
If you find errors after filing your 1099 return with the IRS, promptly correct the information and submit the corrected Form 1099 and Form 1096 to the IRS. Also, provide your recipient with an updated 1099 showing the updated details. If you need to correct any state or local tax department information, file the form with the appropriate agencies, not the IRS.
Deadline for sending COPY B to the recipient is February 15th, 2024, if you report payments only in box 8 or 10.
Until 2019, business owners/payers used Form 1099-MISC to report miscellaneous income and nonemployee compensations (NEC) paid to independent contractors and self-employed individuals. Due to the confusion caused by two different filing deadlines for 1099-MISC, the IRS reintroduced Form 1099-NEC in 2020 to report nonemployee compensation, separate from Form 1099-MISC.
Form 1099-NEC specifically reports nonemployee compensation, while Form 1099-MISC reports other miscellaneous expenses. Form 1099-NEC is not a replacement for 1099-MISC, but rather an alternative for reporting independent contractor payments. Nonemployee compensation is reportable if it meets the following IRS-defined conditions:
Read this blog post for more information on the differences between 1099-MISC and 1099-NEC.
|Previously used to report excess golden parachute payments
|Currently used to indicate the FATCA filing requirement
|Previously used to report payment under NQDC plans
|Currently used to report excess golden parachute payments
|Previously used to report state-withheld taxes
|Currently used to report payment under NQDC plans
|Previously used to report the payer's state number
|Currently used to report state-withheld taxes
|Previously used to report state income
|Currently used to report the payer's state number
|Currently used to report state income
Learn more about the Form 1099-MISC 2023 changes.
Form 1099-MISC underwent significant changes over the past three years. Until 2019, payers used Form 1099-MISC to report payments made to independent contractors, including nonemployee compensations, in Box 7. The IRS reintroduced Form 1099-NEC for the 2020 tax year to reduce confusion. Now, Form 1099-MISC is primarily used to report Miscellaneous Information.
For the 2021 tax year, the IRS made minor changes to Form 1099-MISC. The most notable 2023 change is the form’s title, which changed from “Miscellaneous Income” to “Miscellaneous Information.” Additionally, 1099-MISC Box 7 and Box 11 fields were updated.
Learn more about the IRS 1099-MISC 2023 changes.
Failing to file Form 1099 by the deadline or meeting the deadline but providing incorrect recipient information can result in IRS penalties ranging from $60 to $630, depending on how late the form is submitted. The IRS has increased the penalty amounts for the 2024 filing year.
1099 penalties may be subject to the following:
The IRS is accustomed to changing rules year-to-year, sometimes even in the middle of the current tax season! This is why having the most accurate information about the IRS requirements and deadlines for filing any Form 1099 is essential. Use reliable tax software to e-file your forms and stay updated on any changes in regulations or deadlines.
Note: IRS recommends that payers utilize the e-file option over paper filing for faster processing.
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BoomTax and its affiliates do not provide tax, legal, or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal, or accounting advice. You should consult your own tax, legal, and accounting advisors prior to engaging in any transaction.