Due Date
The filing due date for paper and electronically filed Form 1099-MISC that report amounts in Box 7 (NEC (non-employee compensation)) is January 31, 2019. If you report amounts in any other boxes of Form 1099-MISC such as Box 1 (rents), or Box 2 (royalties), as well as forms 1097, 1098 and 1099, the original due dates still apply – February 28, 2019 for paper filing and April 1, 2019 for electronic filing (March 31st is a Sunday).
Extensions
The 30-day automatic extension of time for 1099-MISC with NEC has been eliminated for 2018. Forms 1097, 1098 and 1099 only: A 30-day extension of time to file is available via Form 8809, Application for Extension of Time to File Information Returns.
Penalties
For your reference, the penalties for failure to file correct Information Returns by the due date are as follows (Section 6721):
- $50 per form if filed within 30 days after due date with a max of $547,000/year (or $191,000 for a small business)
- $100 per form if filed after 30 days after due date but before August 1, with a max of $1,641,000/year (or $547,000 for a small business)
- $270 per form if filed after August 1 or do not file at all with a max of $3,282,500/year (or $1,094,000 for a small business)
- $540 per form for intentional disregard, with no maximum
Recap
The IRS continues to enforce 1099 compliance with accelerated due dates for certain information returns. The 1099-MISC (NEC) due date is January 31, 2019, which is a very quick deadline. This deadline is for 1099-MISC forms that report amounts in Box 7 (NEC). If you report amounts in any other boxes such as Box 1 (rents), Box 2 (royalties), or other types of information returns such as 1097, 1098 or 1099, the original due dates still apply.
For more information about this article, please contact our tax professionals at taxalerts@windes.com or toll free at (844) 252-7337.