What is the Due Date for Filing Form 1099-NEC?

The due date for filing form 1099-NEC to the IRS is January 31st of the tax year. If this date falls on a weekend or a holiday, the filing deadline moves to the following business day. For the 2020 tax year, Form 1099-NEC will be due on February 1st, 2021, as January 31st, 2021 is a Sunday.

Form 1099-NEC is a new form reinstated by the IRS to report self-employment income. If you paid $600 or more to a nonemployee, it is called a nonemployee compensation (NEC). NEC should be declared to the IRS using this Form 1099-NEC.

Before the reintroduction of Form 1099-NEC, Box 7 of Form 1099-MISC was used for this purpose till tax year 2019.

Points to Consider while filing Form 1099-NEC:

  • You need to file the Copy A of the form with the IRS by the due date.
  • You also need to send copy B of the furnished form to the payee by the due date.

Form 1099-NEC IRS Due Date

It is mandatory to file your form 1099-NEC with the IRS before the deadline. You need to submit the Copy A of Form 1099-NEC to the IRS by February 1st, 2021, either electronically or by mail.

Below points will help you while filing the form:

  • If you are filing manually using a paper copy, you must include Form 1096 as a cover sheet. Once both are completed, you can mail them to the IRS.
  • E-filers must file through the IRS’s FIRE (Filing Information Returns Electronically) System. You can reach out to a service provider and create the file in the proper format as specified by the IRS.
  • Scanned or PDF copy of form 1099-NEC will not be accepted by the IRS.
  • You will need a Transmitter Control Code (TCC) to use IRS FIRE. you can request for it through mail or by faxing Form 4419 to the IRS. This must be submitted at least 30 days prior to the filing deadline.
  • Companies that file 250 or more returns are required to file electronically.

Copy A of Form 1099-NEC to be sent to the IRS (for informational purposes only)

1099-NEC Payee Due Date

If you are required to report payments on form 1099-NEC, you must send Copy B of form to the person you made the payment to. Below points are to be noted:

  • Furnish the form 1099-NEC before sending it to the payee.
  • Ensure that you specify the correct address and mail the forms on or before the due date.
  • If you are filing electronic statements, ensure that you post the forms on or before the due date.

Copy B of Form 1099-NEC to be sent to the Payee (for informational purposes only).

What happens if you file form 1099-NEC after the due date?

If you don’t file your form 1099-NEC by February, the IRS will impose a late filing penalty. The longer you take to file your form, the greater your late filing fee will be.

Note:

  • Penalty of $50 if you file within 30 days
  • Penalty of $100 if you file more than 30 days late, but before August 1st
  • Penalty of $260 if you file on or after August 1st

Can you get a filing extension?

If you are unable to file on time, you can request an extension by submitting Form 8809 to the IRS. Form 8809 is used to file for an extension for all types of Forms 1099, as well as for other forms.

Note:

  • The IRS will grant only one 30-day extension, and only for certain reasons.
  • Even if the IRS get a filing extension, you will still need to supply the 1099-NEC forms to any contractors by January 31st
  • Filing extension requests must be submitted on paper

Reasons of Extension

The IRS will only grant extension under the following circumstances:

  • The filer suffered a catastrophic event in a federally declared disaster area that made the filer unable to resume operations or unable to procure necessary records.
  • A filer’s operation was affected by death, serious illness, or unavoidable absence of the individual responsible for filing information returns.
  • The operation of the filer was affected by fire, casualty, or natural disaster.
  • The filer is “in the first year of establishment.”
  • The filer didn’t receive data on time regarding the payee’s statements such as Schedule K-1, Form 1042-S, or the statement of sick pay required under IRS regulations to prepare an accurate information return.

Final Thoughts

As 2020 nears its end, it’s about time that you acquaint yourself with the filing process and due dates relating to Form 1099-NEC. As of now, the IRS has not made any modifications to Form 1099-NEC. But as and when they do, you can come back to our website and we will keep you updated in the shortest time possible.