When to File Your 1099-MISC Forms
Form 1099-MISC is used to report miscellaneous income received by an individual for services other than a wage-paying job. These payments are rendered to non-employees like sub-contractors, renters, etc.
Deadlines for 2016 Tax Year Filing:
- Recipient Copy Deadline: January 31, 2017
- Paper Filing Deadline: February 28, 2017
- E-filing Deadline: March 31, 2017
If Box 7, nonemployee compensation, is used on Form 1099-MISC, these deadlines change:
- Recipient Copy Deadline: January 31, 2017
- Paper Filing Deadline: January 31, 2017
- E-filing Deadline: January 31, 2017
How to File Your 1099-MISC Forms
Form 1099-MISC can be filed to the IRS one of two ways:
- Paper Filing
1. Paper Filing Form 1099-MISC
The paper filing method involves employers submitting IRS Form 1099-MISC by mail with the help of an IRS-authorized office. At these IRS offices - usually only open during peak tax filing times - the verification process of the details of 1099-MISC Forms is done manually, which can take a lot of processing time and still end up having errors that cause your forms to be rejected.
2. E-filing Form 1099-MISC
Electronic filing or e-filing is an online method of filing your IRS Form 1099-MISC. Below, you’ll find all the information regarding online filing and the process for having it done in just a few minutes with an IRS-authorized agent. ExpressIRSForms, an IRS-authorized e-file provider, ensures your details are kept secure and allows you to e-file your forms directly with the IRS. You can even print and mail your recipient copies right from the same place!
What Information is Required When Filing IRS Form 1099-MISC?
The following data is required to file IRS Form 1099-MISC online:
- Payer Details: Name, EIN, Address, Payer Type, and Employee Code
- Payee Details: Name, SSN, Address, and Contact Information
- Federal Details: Federal Income and Federal Tax Withheld
- State Details: Payer State Number, State Income, and State Tax Withheld
Are There Extensions for Form 1099-MISC Filing?
You can apply for an extension if you believe you won’t meet the Form 1099-MISC deadline by completing Form 8809. Form 8809 provides an automatic 30-day extension to submit your 1099-MISC forms and can be easily e-filed with ExpressIRSForms!
What Should You Do if You Need to Make Form 1099-MISC Corrections?
If Form 1099-MISC is rejected for incorrect information, file a new Form 1099-MISC as soon as possible. If the error is with payee information, file a corrected form with the IRS and mail a corrected version to the payee. If the error is with the payer name or TIN, write a letter containing your name, address, error type, tax year, TIN, TCC, return type, payee number, filing method, and federal income tax withheld to
Internal Revenue Service,
Information Returns Branch,
230 Murall Drive,
Mail Stop 4360,
Kearneysville, WV 25430.
Form 1099-MISC Filing Penalties
Failing to file a Form 1099-MISC by the deadline without a reasonable excuse can lead to IRS penalties. You can also receive a penalty if you:
- Fail to file machine-readable paper forms
- File on paper if you’re required to e-file
- Fail to include all required information
- File incorrect information on a return
- Fail to report a Taxpayer Identification Number (TIN) or report an incorrect one
Your penalty amount is based on when the complete and correct Form 1099-MISC is filed.
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Form 1099-MISC Frequently Asked Questions
1. What is nonemployee compensation? When do I need to file for nonemployees?
Nonemployee compensation is money paid throughout the year to an independent contractor who performs work for an employer. Employers need to file a Form 1099-MISC for nonemployees compensated $600 or more during the year for services rendered.
2. What are the different copies available for Form 1099-MISC?
Different copies of the same Form 1099-MISC are created depending on who the recipient of the copy is:
- Copy A of Form 1099-MISC is filed with the IRS.
- Copy B of Form 1099-MISC is mailed to the recipient.
- Copy C of Form 1099-MISC is for the payer’s records.
- Copy 1 of Form 1099-MISC is filed with the State Tax Department.
- Copy 2 of Form 1099-MISC is mailed to the recipient to be filed with their state income tax return (if required).
3. What are the payment exceptions for Form 1099-MISC?
There are some payments that do not have to be reported on Form 1099-MISC, although they may be taxable to the payee. These payments include:
- Generally, payments made to a corporation (including LLCs treated as a C or S corporation)
- Payments for merchandise, telegrams, telephones, freight, storage, and similar items
- Rent payments to real estate agents
- Employee wages
- Military differential wage payments made to employees on active duty
- Business travel allowances paid to employees
- Cost of current life insurance protection
- Payments made to tax-exempt organizations (including tax-exempt trusts)
- Payments made to/for homeowners from the HFA Hardest Hit Fund
4. Does a cancelled debt need to be reported on Form 1099-MISC?
No. Form 1099-C, Cancellation of Debt, is filed for anyone for whom you canceled $600 or more of debt.