How to File a Late 1099-MISC?

You may miss a deadline or submit an inaccurate return while balancing multiple deadlines and different forms to file. When that happens, the IRS will send you a notice of a 1099 late filing penalty (or penalties) detailing what you owe to correct the situation. Once you notice that you missed filing a 1099-MISC, you should file it immediately.  

Form 1099-MISC is among the most important forms. Businesses file it with the IRS (Internal Revenue Service) for specified kinds of non-employee payments. The service provider can use it to pay necessary taxes and follow relevant laws.

What is Form 1099-MISC?

IRS form 1099-MISC is used to report miscellaneous payments made in the course of business or trade in a tax year. Business taxpayers use this form to report payments such as rent, prizes, payments to an attorney, medical and health care payments, and more. As a result, the payer reports a range of payments and tax withholding from the contractor/recipient in Boxes 1 to 18. It includes but is not limited to the following: 

• At least $10 in sovereignties or agent instalments instead of profits or assess-exempt premium. 
• Rents. 
• Prizes and awards. 
• Other income payments. 
• Medical and health care payments. 
• Crop insurance proceeds 
• Cash for fish (or other aquatic life) you buy from anyone in the trade or business of catching fish. 
• Cash paid under a notional principal contract to an individual, partnership, or estate 
• Amounts paid to an attorney 
• Any Proceeds from the Catch of Fishing Boat. 
• Direct sales of at least $5,000 of consumer products to a buyer for resale anywhere other than a permanent retail establishment.

These requirements are required for full tax reporting to the IRS tracking income. This is how they enforce tax laws. 

File a Late 1099 MISC Form? 

Start by collecting all the required information: make sure that you have all information on payments with the recipient’s name, address, and TIN. Fill out the 1099-MISC form with all the correct information and file it electronically through the IRS’s FIRE system or by mail. Submit a copy to the recipient. If filing by mail, Form 1096 would be required. Penalties for late filing range from $50 to $570 per form. To avoid any penalties, stay organized, hire a tax professional, set reminders, and use tax software. Remember, timely filing keeps business functioning smoothly. 

It must be correct to avoid further complications. 

• File with the IRS: You may electronically transmit it with the help of IRS Filing Information Returns Electronically system or, FIRES, or paper filing. The electronic filing method is preferred for prompt processing. 
• Copy B: File a copy with the Recipient: The payee needs to be provided with their copy of Form 1099-MISC. Mail or e-file this to them if they consent. 
• File Form 1096: If filing by paper, prepare and file Form 1096, a transmittal form summarizing all the 1099 forms you filed with the IRS. 

In 2023 alone, the IRS assessed more than $25.6 billion in additional taxes for returns not filed timely and collected almost $2.8 billion with delinquent returns. 

Therefore, it is very important to file the tax forms within the due date or at the earliest to avoid hefty penalties.

Final Thoughts

Although filing a 1099-MISC can be a pain, but timely and accurate filing not only saves you from heavy IRS penalties but also leaves you with peace of time. However, if you miss the deadline, do not panic. Maintain a proper system for tax documents, file at the earliest, and seek help from a professional if necessary.

Tax1099 can help you make your tax filing process effortless to avoid late penalties. Get started today to create accuracy and on-time submissions of 1099-MISC forms