The Internal revenue service reminds businesses and other payers that the deadline for filing Form 1099 is February 1, 2021. There are many different types of the 1099 Forms, such as 1099- MISC, 1099-INT, 1099-K, etc, and the due dates for E-filing of these forms vary and are given by the IRS. The deadlines set by IRS for 1099-Forms helps in easy fraud detection and helps in verifying the income that is reported by the individuals on their tax returns. The IRS also recommends e-filing as the quickest, convenient, and most accurate way to file Form 1099.
Deadline/Due Date to E-File Form 1099-Forms
Deadline to E file Form 1099- MISC
The deadline to file Form 1099-MISC is March 31, 2021. Form 1099-MISC is meant to report the income of taxpayers who are not regular employees of an organization, such as independent contractors, sole-proprietors, freelancers, self-employed individuals, etc. The form can also be of use to report non-employee compensations such as prizes, awards, rents, payments made for an attorney, healthcare payments, etc. Businesses should issue Form 1099-Misc to their subcontractors and vendors for which they have paid at least $600 as rents, awards, prizes, services, etc., in the course of their trade in a given tax year.
Deadline to E file Form 1099- INT
Form 1099- INT tax form from the IRS can be used to report interest income. This form is issued by the payers of interest income to their investors at the end of the year. The form encompasses the breakdown of all types of interest income and their relevant expenses. This form is issued if the individual is paid an interest of at least $10 from a bank, or brokerage, or any financial institution. The due date to E-file Form 1099-INT is March 31, 2021. The recipients should receive the form by February 1, 2021.
Deadline to E-file Form 1099-K
Form 1099-K is used to report card payment and third-party network transactions and it is used to report transactions that are made through payment settlement entities. This third-party payment network and settlement organizations are required to issue this form after processing around 200 transactions and making a payout of over $20,000 to the payee over the course of the year. Recipients of this form are generally vendors, who have received payment using a third-party payment network. The due date to E-file Form 1099-K with the IRS is March 31, 2021. The form should be sent to the recipients by January 31st of the tax year.
It is mandatory that taxpayers plan in advance and E-file 1099 Forms in advance to avoid last-minute hurdles. E-filing of these forms comes as a last resort, even if they have failed to mail the tax forms to the IRS by 1st February of every tax-paying year. Hiring a professional tax advisor is also a good idea to prepare the forms and report obligations to the independent contractors on time to avoid fines and penalties.