Deadlines are important for IRS tax Forms, which is the date by which something has to be done. It is generally the date by which the tax return or the document reporting the taxes reaches the IRS. The important IRS Forms are the 1098 and the 1099 Forms. It is mandatory to file them before the deadline to prevent penalties, which could be a huge tax burden.
IRS Tax Form 1099 and 1098 Forms
IRS tax Form 1099:
The IRS tax Form 1099 is a tax record of the income paid out of the standard employment. This tax Form accounts for income from all the non-employment relevant sources. The business will generate this tax Form and send it to the recipient. Taxpayers should also report their income outside their regular employment to avoid tax audits. This income generally includes dividends from investments, interests from the banks, and also compensation from freelance work.
Issuers of the 1099 tax Forms must send one copy of this form to the IRS and another copy to the recipients. Some issuers send the 1099 Tax Forms by mail, while others file them electronically. Financial institutions and small businesses that hire independent contractors should fill out 1099 Forms and send them to their payers by early February.
IRS tax Form 1098:
The IRS tax Form 1098 is for reporting the Mortgage Interest Statement. Taxpayers use this form to report mortgage interests of $600 or more that they receive during their trade or business. Taxpayers should file a separate tax form for reporting each mortgage. And the $600 threshold applied to each mortgage. Taxpayers can also use this tax Form to report mortgage insurance premiums of $600 or more, that they receive during the calendar year in the course of the trade or business from an individual.
Deadline/ Duedate for 1099 and 1098 tax Forms
Deadline for tax Form 1099:
Form 1099 is an information return tax Form. The IRS compares its data with the information on 1099 Forms and the income the taxpayers report on Form 1040. Individuals need not generate this tax Form and it is generally filed by employers and financial institutions. The due date for e-filing is March 31st of the tax year. Taxpayers receive these 1099 Forms electronically or by mail by early February. They can keep them for their records.
Deadline for tax Form 1098:
The deadline to file Form 1098 with the IRS is the end of February. For taxpayers filing electronically, the due date to file Form 1098 the March 31st. The deadline to offer the copy of Form 1098 to the borrower is by the end of February. Taxpayers can file Form 1098 after they receive mortgage points and interests.
IRS expects its taxpayers to file their tax Forms within the deadline to avoid unnecessary fines and penalties, which could be a financial burden. The best way to file them within the deadline is to e-file them, through a credible tax service provider such as Tax2efile.