- January 15, 2021
As an individual tax filer, you will have a busy work schedule and at times, we forget to do our daily routine. This is applicable to file your taxes before the tax filing due date. When you do not have time to file your returns, you can request an extension for your 1099 taxes from the IRS in order to avoid the late filing fees and penalty charges.
This blog explains how to file an 8809 tax extension when you receive 1099 for the income earned by an independent contractor.
Filing the Extension for 1099 Forms
The important thing to note when you file for an extension is that the extension extends the time for filing your tax return. Instead, it does not extend the time to pay the tax liability. You must make the payment for your tax liability by the due date of April 15.
When you are not sure about the payment amount, you may overpay the tax return. When you underpay the tax, you are subjected to fines, penalties, and interest on the underpaid tax amount. When your payer needs some time to file the 1099s, then you can send the IRS Form 8809 in order to apply for an extension
What is IRS Form 8809?
To fill Form 8809, you just need to fill in the information of your taxpayer and enable the checkbox for which type of form you need time to file. In order to file form 8809, you no need to specify the reason. The filled form 8809 can be either sent to the IRS via mail or electronic filing through the IRS FIRE service.
When to apply for a 1099 Extension?
It is better to apply as soon as you know you will need an extension for the tax year. So submitting Form 8809 during the start of the tax year is a good practice.
When you need to file for the Form 1099 -MISC, under non-employee compensation (NEC) payments in box #7, then the requested date for the extension should not be later than January 31st.
The due dates for filing Form 8809 for the Form 1099 is stated below:
| Form (s) | Filing through paper, then the due date is | When filing electronically, then the due date is |
| Form 1099 | March 1 | March 31 |
| Form 1099 MISC (NEC Only) | February 1 | February 1 |
Penalties for late/failed tax filing
The IRS penalties for 1099 depend on how late you are. The IRS wants all the provided information on the form 1099s are correct and you filed on time. In addition to the IRS penalties, the IRS fines for missing forms, late forms, incorrect taxpayer information, and not filing the forms electronically when you have to (when you required filing over 250 1099s of the same type you need to file 1099 forms electronically). If you do not file them electronically, you must face a fine of $250 per each form.
Generally, the IRS penalties are huge and you do not want to face them. Better pay the tax returns before the due date else, it is a good option to select the extension for the 1099 taxes.
Hope this article gave a clear picture of filing extension for the 1099 taxes. For further assistance and Clarification, you are just a call away from us to reach our customer support team at 703-229- 0326 or drop a mail at support@tax2efile.com. We are happy to assist and serve you at any time.
