Your Ultimate Checklist for 1099 Forms for The Tax Year 2022-2023

The tax Form 1099 is used for reporting information relevant to one’s income with the IRS. It is a common form that covers different taxing situations. The 1099 Forms are more information return Forms, and the IRS requires these Forms to learn the income status of the taxpayer.

Different 1099 Tax Forms/1099S Forms

There are many different types of 1099 Tax Forms, each used to report different types of information.

  • Form 1099-NEC – This Form is required to report non-employee compensation.
  • Form 1099-B – This tax Form is used to report the proceeds from the broker and the barter exchange transactions.
  • Form 1099- DIV – This tax Form is used to report distributions and dividends
  • Form 1099- INT – This Tax Form can be used to report Interest income
  • Form 1099-R – Tax Payers use this Tax Form to report distributions from annuities, pensions, profit-sharing plans, insurance contracts, etc.
  • Form 1099- MISC – This Form is used to report miscellaneous income

The 1099 Tax Forms will report the taxpayers’ investments and the income they have derived from royalties, rents, and non-employee work. As far as the 1099 Form for investment income is concerned, the taxpayer will not receive this Form if they didn’t get any type of income in the tax year. The investment company will monitor the account activity for the tax year and determine if it must send 1099 Forms.

Deadlines for the different 1099 Tax Forms

The different 1099 Forms will have different deadlines as established by the IRS. The Internal Revenue Service mandates taxpayers file these Forms within the deadline to avoid penalties and late fines.

  • December 23rd, 2022 – This is the last date to process a direct deposit payroll with a pay date of 30th December, to be included in the W-2 Form.
  • December 28th, 2022 – This is the deadline to process a manual or an off-cycle payroll with a pay date of 30th December to be included on the W-2 for 2022. Employers who are to process an off-cycle payroll should pay their employees through checks during this period.
  • January 8th, 2023 – This is the deadline to change the W-2 Forms.
S No Type of Tax Form deadline for paper filing Deadline for e-filing Recipient deadline
1 1099 Non-employee compensation 31st January 2023 31st January 2023 31st January 2023
2 1099- MISC 2nd February 2023 31st March 2023 15th February 2023
3 1099 – B and 1099 – S 28th February 2023 31st March 2023 15th February 2023
4 1099- DIV, 1099- INT, 1099-R, 1098-T 28th February 2023 31st March 2023 31st January 2023
5 W 2 Forms 31st January 2023 31st January 2023 31st January 2023

Checklist to E-file 1099 Forms for the Tax Year 2022-23

For a successful tax filing, taxpayers must get all the timely information they will get with the help of a comprehensive checklist. The following are some of the important aspects of the 1099-Checklist

  1. Taxpayers should have identified all the 1099 tax forms the organization would require to file.
  2. Taxpayers should ensure that the system has captured all the information required on the 1099 tax Forms for the year 2022.
  3. They should make sure that their schedule is adjusted to eliminate the filing extensions for Forms 1099-NEC, to report compensation for contract employees.
  4. The taxpayer should ensure they are prepared to meet the January 31 deadline for electronically furnishing or mailing the 1099 tax statements to the payees.
  5. What is the IRS due date that you are required to meet? Is the deadline January 31st or February 28th, or March 31st? What if you are required to extend these deadlines, and how will you accomplish them?
  6. How should the taxpayer coordinate with the data from all the entities acquired during the tax year?
  7. What will you do about the missing TINs in the reportable data of the 1099 tax Forms?

Important tips for filing your taxes on time and avoiding the penalty

One important point to be remembered for both business owners and Tax Form recipients is to stay ahead of the tax season and file their Forms on time with the IRS. They should also perform mandatory filing of the 1099 tax Forms for their independent contractors and file Forms W-2 for their employees.

It is mandatory to be watchful of the important dates and deadlines and take all steps to streamline the entire process of tax reporting. Other essential tips for reporting taxes on time with the IRS are as follows.

  1. Handle the legal work of 1099 in advance

It is important not to rush with the preparatory work of the 1099 Forms. Instead, businesses can have all their independent contractors, consultants, freelancers, and sole proprietors fill out their W-9 Forms and request their TINs. The W-2 Form helps in gathering the legal name of the recipient, their TIN, and other necessary details to complete filing the 1099-Form.

  1. Head Start by November as new 1099 Forms and early e-filing portals will be open:

Businesses can start their e-filing process early rather than wait till January. If they are sure that their independent contractors have completed the work for the calendar year and if they have gathered all the required information, then it is good to get started at the earliest.

  1. Distribute 1099 Forms and W-2 Forms by 31st January:

Businesses should distribute their tax Forms for their employees and independent contractors ahead of time so that it will be easy for them to file their returns with the IRS.

Bottom Line:

The most important tip to understand while filing 1099- Tax Forms for the year 2022-23 is to e-file them with an IRS-authorized service provider like Tax2efile. Their automated software helps e-filing of bulk forms easily and hassle-free.

Their customer support personnel will also offer round-the-clock service to ensure that Forms are checked for errors and submitted on time to the IRS. Filing ahead of time helps the businesses to correct the Forms if required and avoid penalties and fines for late filing.