Form 1099s are IRS tax forms that are used by the citizens of the United States to report their income other than wages to the Internal Revenue Service. The 1099 Forms are used to report wages and tips and there are many variants of 1099 Forms issued by the IRS department. The deadline for most of the 1099 Forms is January 31st of the tax year. Of all the IRS Forms, the 1099-MISC and 1099-NEC Forms are predominant and the deadline for 1099 MISC is January 31st for the 2021-2022 tax year.
Form 1099-MISC and Form 1099-NEC Due Date/Deadline
Form 1099 – Miscellaneous
The Internal revenue service has revised Form 1099 from the tax year 2020, to accommodate the creation of a new Form 1099- NEC. The redesigned 1099-MISC Form has different box numbers to report certain income. Businesses must send Form 1099-MISC to the recipients by January 31st, 2022. The businesses should file it with the IRS by March 1st of the tax year. The Form 1099- MISC and all other 1099 Forms are due to the IRS by February 28, if they are filed on paper and they are to be submitted by 31st March if they are filed electronically. Taxpayers who require more time to file Form 1099 MISC should file Form 8809 with the IRS to request a 30-day extension for Filing 1099- MISC and other forms. Penalties for late filing Form 1099 range from $30 to $100 per Form. The penalty for intentionally disregarding tax filing is about $250 per Form.
Who should file Form 1099- MISC: If a business pays an individual or an LLC an amount of at least $600 or more, during the tax year as rent, prize, as awards, or as legal settlements, then it is required to file Form 1099- MISC.
Form 1099- Non Employee Compensation
A business that has paid at least $600 to their independent contractors should file Form 1099-NEC with the IRS by January 31st of the tax year, to report their nonemployee compensation. This IRS Form is currently defined as the payments made to the individuals who are not on the payroll of an organization but are included with it on a contract basis, to complete an assignment or project. This tax Form covers all self-employed workers, gig workers, independent contractions who previously had their payments reported in the 1099- MISC Form, Box 7. The 1099 NEC copies are due to the recipients by January 31st of the tax year. The automatic 30-day filing extension period doesn’t apply for Forms 1099- NEC and thus the employees are required to report non-employee compensation to the IRS and provide the same to their recipients by January 31st of the tax year.
Who should file Form 1099- NEC: If the business hired a contractor and paid them more than $600 in a tax year, then it has to file Form 1099 NEC with the IRS and send the copy of the tax Form to the contractor.
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