Form 1099-NEC Filing Deadline
for 2024
Form 1099 NEC - Deadline and Filing Requirements
Updated on October 31, 2023 - 10:30 AM by Admin, TaxBandits
Starting with the tax year 2020, the Form 1099-NEC was returned to the IRS line-up. This means all non-employee compensation must be reported using this form, rather than the 1099-MISC with the IRS and furnish them with a copy.
Non-employee compensation refers to the payments made to independent contractors and vendors, these payments must be reported to the IRS. If your business hired independent contractors and/or vendors and paid them more than $600 for their services, you are required to file 1099-NEC with the IRS and furnish them with a copy.
1. When is the 1099-NEC Deadline 2023?
Form 1099-NEC is due on January 31 for both recipient copies and IRS, irrespective of the filing methods (paper or e-filing). The deadline to report Form 1099-NEC for the 2023 tax year is
January 31, 2024. . If the deadline falls on any weekend or public holiday, the deadline will move to the next business day.
| Recipient copy | Paper filing | E-filing |
|---|---|---|
|
January 31, 2024
Simply get started with TaxBandits and your recipient copies will be delivered on time. |
January 31, 2024
IRS Recommend to file 1099 NEC electronically for quick processing and instant approval |
January 31, 2024
Don't wait till the deadline. Get started with TaxBandits today and E-file 1099 NEC in minutes. |
Want to know the 1099-NEC State Filing Deadline?
Most of the states have January 31st as the 1099-NEC filing deadline. But, the deadline to file will vary for some states.
Click here to learn more about the state filing deadline.
2. What are the 1099-NEC late filing penalties?
If you fail to file 1099 NEC, your business is subject to IRS late filing penalties, depending on how late you file it. Here are the possible penalties for late filing or not filing Form 1099-NEC
| Condition | Minimum penalty | Maximum Penalty |
|---|---|---|
|
Less than 30 days late |
$60 / return |
$630,500 / year ($220,500 for small businesses) |
|
31 days late but before |
$120 / return |
$1,891,500 / year ($630,500 for small businesses). |
|
After August 1 or Not at All |
$310 / return |
$3,783,000 / year ($1,261,000 for small businesses). |
|
Intentional Disregard |
$630 / return |
No limit |
The maximum penalty rate might vary based on your business type, either small or large business. Learn More about 1099 NEC Penalties.
3. What are the Filing Requirements for Form 1099 NEC?
If your business hired an 1099 contractor, freelance worker, or vendor during the tax year and paid them $600 or more for their services, your business is required to report this on Form 1099-NEC. When filing this form, please note that your business is considered the “payer” and the independent contractor/vendor is the “recipient”.
Form 1099-NEC requires the following information:
- Payer (your business) name, address, and TIN
- Recipient (independent contractor) name, address, and TIN
- Total Nonemployee compensation
- Federal and state income tax withheld
Ready to File 1099 NEC Online? Get Started with TaxBandits and E-file 1099 NEC in minutes!
4. How to file Form 1099-NEC with TaxBandits?
With the recent reduction in the e-filing threshold, businesses that file 10 or more aggregated 1099 returns should e-file with the IRS. TaxBandits is your ideal solution to meet your compliance requirements.
TaxBandits offers various time-saving features like bulk upload, seamless integration with your existing accounting software, TIN matching, and more to simplify your tax filing process.
With just a few simple steps, you can e-file your tax return in minutes and receive your copies through postal mail or online.
- Step 1: Add Business and Recipient Details
- Step 2: Enter Form Information
- Step 3: Review the Form Summary and make any necessary corrections
- Step 4: Transmit the Form to the IRS
File your 1099-NEC electronically with TaxBandits before the deadline. Get Started Today!"
