You should begin preparing for 1099 form delivery and filing as early as possible — ideally the fall beforehand. Many companies underestimate the time required for collecting and confirming all of the needed information. It’s a best practice to receive a W-9 form from a contractor or vendor before the first payment is made. Having this documentation will help immensely come time to prepare 1099 taxes.
As for strict deadlines, companies must first send a copy of the Form 1099-MISC or Form 1099-K to the recipient, vendor, or contractor who was paid by January 31st of the following calendar year (or the next business day if the 31st falls on a Saturday or Sunday). Contractors should reach out as soon as possible if any corrections are required. Next, 1099 forms must be filed with the IRS. If you plan on filing via paper mail, the deadline is January 31st.
The deadline for filing electronically is also January 31st. Businesses that file electronically need to go through IRS’ FIRE system. Filers who submit electronically via FIRE must make sure the forms match the IRS’ particular requirements and need to establish an account and receive authorization from the IRS in order to use FIRE (IRS Pub 1220 provides information on how to receive that authorization).
Or, you can use Payable.
Here’s a handy rundown of important deadlines for 1099-K and 1099-MISC including the deadline for filing for an extension.
*Due date applies for nonemployee compensation reported in box 7.
Companies that need more time to file 1099s, can send the IRS form 8809 to apply for an extension. See the How To Request An Extension For Filing 1099 Forms With The IRS guide.
The How To Request An Extension For Delivering 1099 Forms To Recipients guide provides information about how your company can request more time to deliver 1099s to recipients.
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