Here are some simple ways to organize and prepare your 1099 forms for the 2021 tax season.
2021 is officially coming to an end. This means the buzz leading up to the holidays will continue till the New Year, and of course, the inevitable tax season awaits us as we bid bye to a …well, a year in the decade, and welcome 2022.
Tax season, or how small businesses like to call it, “the most stressful time of the year” because the tax year comes to an end and businesses prepare to file their information returns before the IRS deadlines.
If you’re a small business owner, you know the rush leading up to the new year and the constant nagging inside your head to double-check everything and be ready for the filing season.
Well, if you haven’t started preparing your forms yet (yikes!), get started right away to avoid late filing penalties.
If you have prepared everything and you’re just waiting for the due dates to just arrive (good for you), and use this guide to cross-check everything just to be sure.
You can also just schedule your eFiling with Tax1099’s eSchedule and forget about deadline worries. We will make sure that your completed returns are submitted to the IRS before the due date.
The 1099 filing season can be really chaotic if you’re unprepared and we’re trying to help small businesses like yours organize their tax forms and be completely ready when the IRS starts accepting the forms from January 1, 2021.
This guide will include some important tips, processes, online resources for tax-related help, and some important due dates and deadlines to mark and pin on your vision board.
So, let’s get to it.
But, before we get started, here’s a little something to help you be familiar with the 1099 season.
What Are 1099 Forms?
1099 forms are information returns used for reporting business tax information. Forms like 1099-NEC, 1099-MISC, 1099-K, and more are used by businesses to report certain transactions made throughout the year in the course of business.
Do You Need To File 1099 Forms?
If you’re a self-employed individual or a small business that has made payments amounting to $600 or more in the course of your business, then you definitely need to complete and submit the relevant 1099 forms for your business appropriately.
Learn more about this here.
What Is The Deadline For 1099 Forms? / When Are 1099 Forms Due Date In 2022?
Form 1099-MISC Due Dates For 2021-2022 Tax year
| IRS Form | Filing Type | Due By Date |
| 1099-MISC | Recipient Copy (With Data in Box 8 or Box 10) | Feb 15, 2022 |
| Recipient Copy (Without Data in Box 8 or Box 10 ) | Jan 31, 2022 | |
| IRS – eFile | March 31, 2022 | |
| IRS – Paper File | Feb 28, 2022 |
Form 1099-NEC Due Dates For 2021-2022 Tax year
| IRS Form | Filing Type | Due By Date |
| 1099-NEC | Recipient Copy | Jan 31, 2022 |
| IRS – eFile | Jan 31, 2022 | |
| IRS – Paper File | Jan 31, 2022 |
According to the update to the PATH Act, certain 1099 forms, including the 1099-NEC, non-employee compensations have been given new due dates (January 31). The automatic 30-day extension that applied to certain 1099 forms has been removed, accelerating the tax filing process.
However, certain 1099 forms which are exempted from this rule have separate filing dates and you can check all such due dates here and here.
5 Simple Ways To A Successful 1099 Season
Obtain TINs From Vendors With W-9 Forms
Send out W-9 forms to your independent contractors, vendors, and freelancers and have them send the completed forms with valid tax information. Businesses are advised to conduct this step during the vendor onboarding process to accelerate vendor compliance and reduce last-minute rush at the end of the year. If you haven’t verified your vendors yet, you can still send out Form W-9 with Tax1099’s W-9 eSolicitation and obtain the vendor name and TIN information.
Move Along With Real-Time TIN Matching
Once you have obtained the name and TIN information from the vendors, you can easily start checking the validity of the details by looking up the TINs and name per the IRS records. You can easily do this with Tax1099’s real-time IRS TIN Matching tool, where you can search as many as 100,000+ TINs within a minute and get the results right from the source within 30 seconds or less. Talk about making things seamless during the year-end rush!
Complete 1099 Forms With Accurate Information
Once you have verified the vendor information, it’s time to focus on your own transactional data. Gather all the required information and enter the data. You can have a licensed CPA or an accountant help you with the process. However, holidays are ahead and you may not find an accountant on such short notice. But don’t worry; you can always get help online from Tax1099 and its tax experts.
Contact our customer success team and explain your case. Our experts will be of help to alleviate some of the stress off you with instant resolutions.
If you’re using tools like Tipalti, Fresh Books, or Bill.com, you have just made your own job easier. You can log into your Tax1099 account and import your tax-sensitized data with a simple click. Watch your data be appropriately populated across your 1099 forms within minutes.
Bonus Tip: Keep a track of vendor payments for tax withholdings.
It is essential to maintain a comprehensive record of all the vendor payments and any payments that are still due from your end. This allows you to figure and calculate the federal and state tax withholdings from the due payments, which must be reported on Form 1099-MISC and 1099-NEC.
Wait! Don’t Submit Yet – Validate Your Reports First
Before you proceed to hit the submit button, hold on just for a second and review your tax information reports on all 1099 forms. Just make sure that you have got all the TINs, tax withholdings, and other figures right.
- Remember that each TIN discrepancy with the IRS can cost you at least $250 in penalty + interest on the account of willful disregard. But if you have a genuine cause, you may request the IRS for a deadline extension here to buy yourself some more time to submit the accurate information.
Pay special attention to any boxes that you might need to check to declare certain regulatory information. You can also have an accountant or tax expert take a look at your forms before you submit them to the IRS.
You must also send a copy of the 1099 forms to the recipients/payees. Be sure to submit the copies to your recipients before the due dates (ref. 1099 due dates table above) to avoid assessments from the IRS.
Submit Your Returns + Send Copies Of 1099 Forms To Recipients
Once you’re confident that your returns are furnished with accurate information, go ahead and submit the forms online by eFiling with Tax1099. Our simple 3-step eFile experience allows you to eFile your 1099 returns within seconds. Be sure to download the proof of payment as acknowledgment after you’ve submitted the forms.
Schedule Your 1099 eFiles Online With Tax1099 In A Jiffy
Tax1099 is an IRS-authorized eFile provider loved and trusted by 100,000+ businesses across the U.S. Self-employed individuals, small businesses, enterprise companies, and other businesses leverage Tax1099’s simplified digital tax solutions for an easier, smarter, and convenient eFiling experience.
In order to help businesses during the peak filing season, Tax1099 enables 1099 eSchedule. Tax1099’s eSchedule enables businesses to schedule their 1099 filings for a specific date before the deadline.
You can also automate the scheduling process to have Tax1099 schedule your eFilings on your behalf. This way you never miss an IRS deadline again and be assured that your returns will be submitted to the IRS within seconds. We will further notify the users about the submission status to keep them posted on the process. Learn more
Recommended Reads
Tax Guide For Small Business Owners – Form 1099-NEC Vs W-2
States Now Require The Gig Economy Companies To Report With Form 1099-K
eFiling Form 1099-MISC? Then You MUST Know About These NEW Updates For 2021 Tax Year