Penalties for Missing the 1099-NEC or 1099-MISC Filing Deadline

Tags: 1099, 1099 Form, 1099 Forms, Form 1099, Form 1099-MISC, Form 1099-NEC
Penalties for Missing the 1099-NEC or 1099-MISC

Key Takeaways

  • Form 1099-NEC must be filed by January 31 (February 1, 2027 for 2026TY) to report $2,000 or more in nonemployee compensation..
  • Form 1099-MISC must be filed with the IRS by February 28 (paper) or March 31 (electronic), to report miscellaneous payments. The paper deadline moves to March 1, 2027 for 206TY.
  • The deadlines for filing moves to the next day, if the due date falls on a weekend or holiday.
  • Late-filing penalties for returns due in 2026 range from $60 to $340 per form, depending on how late you file.
  • Intentional disregard can trigger a minimum penalty of $680 per form, with no annual cap.
  • Use Form 8809 to request an extension for filing information returns with the IRS.

OBBBA Update

The One Big Beautiful Bill Act has raised the threshold for Form 1099-NEC from $600 to $2,000. For Form 1099-MISC, categories such as rent, prizes and awards, medical and health care payments, crop insurance proceeds, and fishing boat proceeds are also covered by the same $2,000 threshold. These updated thresholds apply to payments made in 2026, which you will report to the IRS.

Businesses must submit Form 1099-NEC by January 31, or the following business day if it falls on a weekend or holiday, to report $2,000 or more in nonemployee compensation paid in 2026.

On the other hand, Form 1099-MISC, paper filing deadline is on February 28, and March 31 for electronic filing. Reportable payments for this form include royalties of $10 or more, and rents and medical and health care payments of $2,000 or more. Gross proceeds paid to attorneys remain reportable at $600 or more regardless of the updated thresholds.

In case a business fails to file the required forms by the deadlines mentioned above, a penalty may be applied. The penalties for returns due in 2026 range from $60 to $340 per form, depending on when the forms are filed.

If your business intentionally disregards the filing obligation to file accurate Form 1099-NEC or Form 1099-MISC, you may face a minimum penalty of $680 per form, with no annual cap.

Changes in Form 1099-MISC & Form 1099-NEC

The Form 1099-MISC has undergone several changes in recent years. 2020 saw the reintroduction of Form 1099-NEC for reporting non-employee compensation, moving that reporting off of the 1099-MISC form where it had been since 1983.

Recently, OBBBA has changed the threshold from $600 to $2,000 for certain reportable payments that are reported in both these two forms. This new threshold applies to reportable payments made after December 31, 2025.

What are the Deadlines & Penalties For Late-FIling Form 1099-MISC & Form 1099-NEC?

Form Type Deadline for Filing Deadline For 2026 TY
Form 1099-NEC January 31 February 1, 2027*
Form 1099-MISC February 28 (paper filing)

March 31 (electronic filing)

March 1, 2027 (paper filing)*

March 31, 2027 (electronic filing)

  • The deadline moves to the next business day since it falls on a weekend or holida

Deadlines for filing Form 1099-MISC and Form 1099-NEC

The deadlines in the table above apply to your IRS filing only. Recipient copy deadlines fall on a separate date. For Form 1099-NEC, the recipient copy and the IRS copy are both due on January 31, or the next business day if it falls on a weekend or legal holiday. For Form 1099-MISC, recipients must generally receive their copy by January 31 or February 15 if Box 8 and 10 amounts are being reported..

The IRS charges penalties per form, and the amount goes up the longer you wait to file. Based on the most recently confirmed IRS penalty schedule, filing within 30 days of the deadline costs $60 per form. Waiting more than 30 days but filing by August 1 raises that to $130 per form. Filing after August 1, or not filing at all, brings the penalty up to $340 per form. Intentional disregard is the most expensive category at a minimum of $680 per form, with no annual cap.

What surprises many businesses is that these penalties can apply separately to the IRS copy and the recipient copy. Missing both deadlines on the same return could mean two separate penalty assessments for that one form. On top of that, businesses that file 10 or more information returns in aggregate are required to eFile. Filing on paper without an approved waiver from the IRS can trigger an additional penalty.

Avoid Penalty By Filing on Time

To steer clear of penalties, first confirm whether a Form 1099 is required under the updated 2026 thresholds and whether backup withholding applies to the payment. If backup withholding applies, you must report the payment and the withheld amount on the correct Form 1099 even if the payment falls below the normal filing threshold.

Beyond that, review every return and payee statement carefully before submitting. Errors lead to IRS notices, corrected filings, and extra work that is easy to avoid upfront.

Request for More Time to File With An Extension

If you require more time to file Form 1099-MISC or 1099-NEC, you can use Form 8809, Application for Extension of Time to File Information Returns, to request an extension.

Extension rules also differ between the two forms. For Form 1099-MISC IRS filings, Form 8809 provides an automatic 30-day extension when filed by the original due date, with no justification required. There is also the option of adding an additional 30-day extension if the first extension was granted.

For Form 1099-NEC, there is no automatic extension. Filing Form 8809 for 1099-NEC provides only one 30-day extension, which is not automatic. It also requires filers to meet one of the specific hardship conditions listed on Form 8809, and submit the request on paper by January 31.

An IRS filing extension does not extend the deadline to furnish copies to recipients. Those deadlines are separate and each requires its own extension request.

To request more time to furnish payee statements to recipients, use Form 15397, Application for Extension of Time to Furnish Recipient Statements. Submit it online at IRS.gov or by fax to the IRS Extension of Time Coordinator, and make sure it reaches the IRS by the recipient statement due date. The IRS does not send approval letters for this request. No response means your 30-day extension was granted.

More details on the late filing penalties can be found here.

How to eFile 1099-MISC/1099-NEC with Tax1099?

Step 1: Provide Federal Tax Information, including business information, recipient details, and reportable payment amounts
Step 2: Add State Tax Information, including state withholding details, state income, and payer state account numbers, if applicable
Step 3: Review and validate the data with built-in validations to identify any issues
Step 4: Submit your Form 1099-MISC or 1099-NEC with the IRS and track your filing status from your Tax1099 dashboard
Step 5: Send Recipient Copy via Email or Download PDF copies for distribution