January 31 is the Deadline for Forms 1099: What Taxpayers Need to Know

If you paid independent contractors, vendors, or other non-employees during the year, January 31 is an important tax deadline you should not ignore.

By January 31, taxpayers are required to both:

1. Provide Form 1099 to the recipient, and

2. File Form 1099 with the Internal Revenue Service (IRS)

   
   

Missing this deadline can result in penalties, even if the failure was unintentional.

What Is Form 1099?

Forms 1099 are used to report certain types of payments made in the course of a trade or business, including payments to:

• Independent contractors (Form 1099-NEC)

• Attorneys (often Form 1099-NEC or 1099-MISC)

• Rent recipients

• Certain service providers and vendors

In most cases, a Form 1099 is required if you paid $600 or more to a qualifying recipient during the calendar year.

Who Needs to File?

You may have a filing obligation if you are:

• A business owner or sole proprietor

• An S-corporation or partnership

• A nonprofit organization

• A landlord making reportable payments

• An individual operating a trade or business

Many taxpayers are surprised to learn that corporations are not always exempt, particularly when it comes to legal or professional services.

The January 31 Deadline Applies to Both Steps

This is a common point of confusion.

By January 31, you must:

• Deliver the 1099 to the recipient, and

• Submit the same form to the IRS

There is no automatic extension, and filing late, even by a few days, can trigger penalties.

Penalties for Late or Incorrect Filing

Penalties vary depending on how late the filing is and whether the failure was corrected, but they can add up quickly. In addition, incorrect forms (wrong amounts, missing taxpayer identification numbers, or filing the wrong type of 1099) can also result in penalties.

What You Should Do Now

If you haven’t already:

• Confirm which vendors or contractors require a Form 1099

• Verify taxpayer information (including W-9s)

• Prepare and submit the forms before January 31

If you’re unsure whether a 1099 is required, or if you’re behind, it’s best to address the issue before the IRS does.

Need Help?

Form 1099 compliance is a routine obligation, but mistakes can be costly. If you have questions about whether you need to file, how to correct a prior error, or how to get compliant quickly, the Chenevert Law Group can can make the process far less stressful.