1099-MISC Form Tips

Minimum Requirements:

The 1099-MISC Form is a multipart form: Here are the parts of the form and where to send each part:

Copy A – You are responsible for filing this copy with the Internal Revenue Service (IRS) by March 31.
Copy 1/State Copy – You are responsible for filing this copy with the appropriate state, city or local tax agency, if applicable.
Copy B and 2 – You are responsible for furnishing these copies to recipients by January 31. The due date is extended to February 15, if you are reporting payments in box 8 or 10.

If any regular due date falls on a Saturday, Sunday or legal holiday, file by the next business day. You may request one non-automatic extension of time to file by submitting justification for the delay with Form 8809. An approved Form 8809 only extends the due date for filing Form 1099-MISC to the IRS, it does not extend the due date for furnishing required copies of Form 1099-MISC to the recipient. You may request an extension of time to furnish Copies B and 2 of Form 1099-MISC to the recipient(s) by faxing Form 15397, Application for Extension of Time to Furnish Recipient Copies to IRS.

Penalties:

If you do not file correct 1099-MISC Forms by the due date, and cannot show reasonable cause, you may be subject to one or more penalties because failure to file to IRS is considered a separate penalty from the failure to furnish copies of the Form 1099-MISC to the recipient. Penalties apply for:

Not filing on time
Including incorrect or incomplete information
Filing on paper when you were required to file electronically
Filing with a missing or incorrect recipient Taxpayer Identification Number (TIN)
Any combination of the above

Electronic Filing:

The Taxpayer First Act, included regulations that reduce the electronic filing threshold from 250 to 10 wage and information returns (such as Forms W2 and 1099). If you file 10 or more total, you must file electronically. The e-file threshold of 10 is effective for returns required to be filed on or after January 1, 2024.

Common Errors on 1099-MISC Forms:

Avoid making the following errors, which cause processing delays.

Do not:

Enter 0 (zero) or “none” in boxes. If a box does not apply, leave it blank
Omit the decimal point and cents from entries. For example, 1230.00 is correct, not 1230
Add dollar signs to the money-amount boxes

1099-MISC Form Do’s & Don’ts:

DO verify that the recipient’s Taxpayer Identification Number (TIN) is correct. You must have Form W-9 Request for Taxpayer Identification Number and Certification from each recipient with the current (TIN) before you file Form 1099-MISC.
DO be sure to report the correct payment amount in Box 1. IRS uses this information to determine whether the recipient has properly reported the payment.
DO keep the data used to complete 1099-MISC Forms for four years.
DO NOT use a 1099-MISC Form to report non-employee compensation. Form 1099-NEC is used to report non-employee compensation.
DO NOT submit any copy other than Copy A to the IRS.
DO NOT use a 1099-MISC Form to report employee wages. Form W-2 is used to report employee wages.

Minimum Requirements:

Penalties:

Electronic Filing:

Common Errors on 1099-MISC Forms:

1099-MISC Form Do’s & Don’ts:

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