Form 1099-NEC & Form 1099-MISC: Deadlines & Penalties For 2021-2022 Tax Year

The IRS deadlines for forms 1099-NEC and 1099-MISC are fast approaching. Check the due dates, penalties, and important information with this quick and simple guide.

Every year, businesses look forward to the filing season. 

Said no one ever!

Filing season is stressful no matter how prepared you might be. 

So, we’ve put together some important information to help you prepare, validate, and eFile your 1099 forms. 

If you’re a business owner or a paid preparer, you must know just how important this time around the year is. 

Recently, the IRS accelerated the deadlines for 1099 filing, which includes Form 1099-NEC. After Box 7 of 1099-MISC was subtracted and Form 1099-NEC was reinstated for the same, business taxpayers have had to file most of their 1099 forms on or before the IRS deadline, which is January 31. For the 2021-22 tax year as well, the IRS deadlines for the 1099 forms will be January 31.

For contextual purposes, this discussion will address the specific due dates, penalties, and other key points pertaining to forms 1099-NEC and 1099-MISC exclusively. 

So, let’s get to it.

Form 1099-NEC: Quick Facts

  • It is specifically used for reporting non-employee compensations paid to independent contractors.
  • Form 1099-NEC was re-introduced to accelerate entity-contractor compliance and address the employee misclassifications prominent in certain industries.  
  • Legal name and taxpayer identification number of the vendor are critical for filing this return.

Form 1099-MISC: Quick Facts 

  • 1099-MISC is specifically used to report miscellaneous information that is generally not reported in other tax forms. 
  • For example, rent, royalties, crop insurance proceeds, and other miscellaneous payments are reported on Form 1099-MISC. 
  • Box-7 of Form 1099-MISC was previously used to report payments made to independent contractors. 
  • Due to the misuse of the reporting instructions for Form 1099-MISC, the IRS decided to separate the non-employee compensation reporting, which resulted in the re-introduction of Form 1099-NEC.

When Is Form 1099-NEC Due In 2022? 

Use the following table to understand the due dates for Form 1099-NEC for the 2021-2022 tax year. 

Form TypeForm DescriptionMinimum Reportable AmountIRS eFile Due Date IRS Paper File Due DateCurrent Version (2022)
1099-NECNonemployee Compensation$600 in nonemployee compensationsJanuary 31January 31Form 1099-NEC

eFile Form 1099-NEC

When Is Form 1099-MISC Due In 2022? 

Use the following table to understand the due dates for Form 1099-MISC for the 2021-2022 tax year.

Form TypeForm DescriptionMinimum Reportable AmountIRS eFile Due Date IRS Paper File Due DateCurrent Version (2022)
1099-MISCMiscellaneous Information$10 for royalties. $600 for most forms of miscellaneous paymentsFeb 28March 1Form 1099-MISC

eFile Form 1099-MISC

What Are The Late Filing Penalties For Form 1099-NEC & Form 1099-MISC?

The IRS requires business taxpayers to file their 1099 returns on or by the prescribed due dates. 

However, if you fail to file your returns by this deadline, your business will be subject to certain late filing penalties and failure to file penalties as well. 

The current penalty assessment for late filing of forms 1099-NEC and 1099-MISC is $50-$250. This amount may not seem like much. But when you consider the fact that businesses usually file these form types in multiples of 10s, the penalty seems pretty taxing.

What’s more? The IRS penalties will continue to accrue interest and additional penalties if you disregard the filing deadlines willfully. 

The tax experts at Tax1099 recommend preparing and filing the 1099 returns before the IRS due dates as prescribed above to prevent IRS penalties. 

If you don’t have the time to prepare your 1099 forms, leverage the API solutions from Tax1099. Choose from sleek utility solutions like bulk W-9 solicitation, real-time TIN Matching, and USPS Address Validation solutions.

Related Post