Frequently Asked Questions on Form 1099

What is a Form 1099?

The Form 1099 series consists of various forms called "Information Returns" by the IRS. These forms report specific payments a business makes to anyone other than a regular employee during the year. Examples include:

  • Independent contractors using 1099-NEC to report miscellaneous income.
  • Banks issuing 1099-INT for interest income earned by account holders.
  • Corporations provide 1099-DIV to shareholders for dividends received; government agencies send 1099-G for various payments such as tax refunds; and financial institutions issue 1099-R for retirement account distributions to retirees or account holders.
Businesses must submit Form 1099 to the IRS and send a copy to the recipient.

What is IRS Form 1096?

Form 1096, Annual Summary and Transmittal of U.S. Information Returns, serves as a summary for tax Forms 1097, 1098, 1099, and W-2G. If you submit Form 1096 and 1099s forms on paper, you must complete Form 1096 and send it to the IRS. Form 1096 is not required for electronic filing.

However, when e-filing these forms with BoomTax, there is no need to fill out Form 1096. For your records, Form 1096 will be auto-generated in your account.

Image of Form 1096 Boxes 2023

What are the different varieties of Form 1099?

While the IRS does add or remove forms year to year, there are around twenty different types of Form 1099s. Most recent, including Form 1099-NEC, Form 1099-MISC, Form 1099-INT, Form 1099-K, etc. Each 1099 tax form is known to report various income types or transactions made to taxpayers during the year. Some of the most common 1099s include:

Form 1099-NEC – Non-Employee Compensation

IRS Form 1099-NEC is utilized by individuals or businesses to document payments of $600 or more made to non-employees, such as self-employed workers, freelancers, or independent contractors, during a calendar year.

Form 1099 MISC – Miscellaneous Income

Form 1099-MISC is well known for its popularity in reporting specific Miscellaneous payments made to non-employees for the services provided during the calendar year.

Form 1099 K – Payment Card and Third-Party Network Transactions

Form 1099-K is a tax return document issued by the IRS, which payment settlement entities use to report commercial payments of $600 or more made to individuals or businesses via payment cards (credit/debit cards) or third-party network transactions (such as PayPal or Venmo), irrespective of the total number of transactions within a calendar year.

Form 1099-INT – Interest Income

Form 1099-INT is utilized to report interest income and must be filed by the payer if they have paid $10 or more in interest.

Form 1099-DIV – Dividends and Distributions

Form 1099 DIV documents dividends and distributions paid to individuals based on their investments. Banks and financial institutions commonly use this form.

Other 1099 Forms

Additional 1099 forms include Form 1099-R for reporting distributions from retirement plans, Form 1099-S for real estate transactions, Form 1099-B for broker and barter exchange transactions, Form 1099-C for canceled debts, Form 1099-G for government payments, and Form 1099-PATR for cooperative dividends.

Form 1099 R

IRS Form 1099-R reports distributions of at least $10 from retirement plans, annuities, pensions, or other profit-sharing arrangements, providing information on the amounts received by an individual during the tax year.

Form 1099 S

Form 1099-S reports the proceeds from real estate transactions and reports the sales or exchange of real estate.

Form 1099 B

Form 1099-B reports the proceeds from the broker and barter exchange transactions. The recipients include each person to whom the recipient sold the stocks or commodities for cash. In addition, Form 1099-B reports stock acquisition of control or capital structure changes.

Form 1099-C

Lenders that have canceled an individual's $600 or more debt during a tax year must file Form 1099-C with the IRS and provide copies to the debtor.

Form 1099-G

Federal, state, and local governments that issue payments to individuals—such as unemployment benefits, income tax credits, refunds or offsets, RTAA payments, taxable grants, and agricultural subsidies—must submit Form 1099-G.

Form 1099-PATR

Cooperatives must file Form 1099-PATR if they have distributed at least $10 in patronage dividends or any disbursements specified in section 6044(b). Additionally, they must report any federal income taxes withheld under the backup withholding rules on Form 1099-PATR.

Requesting an Extension for Filing Form 1099

If you need more time to file your Form 1099 online, request an extension using Form 8809. Pending the IRS approves your request, employers are granted an additional 30 days to file 1099s with the IRS. Under the current specifications, automatic extensions do not apply to Form 1099-NEC non-employee compensation. To request an extension for Form 1099-NEC, payers must manually fill out Form 8809 and mail in an extension request to the IRS address on the form.

What are the 1099 Deadlines for 2024?

  • January 31st, 2024
    Recipient Copies

    Form 1099s must be distributed to the recipient on or before January 31st

  • February 28th, 2024
    Paper Filing

    Paper filing must be filed with the IRS on or before February 28th

  • April 1st, 2024

    Form 1099s must be e-filed directly to the IRS on or before April 1st

Visit our deadlines article to learn more about Form 1099 due dates.

Note: If the filing deadline lands on a Saturday, Sunday, or legal holiday, the due date will automatically be extended to the following business day.

The exception to these deadlines above is for filing Form 1099-NEC. Depending on the filing method, there is a month's advancement on the recipient and IRS copies being January 31st. Get started with BoomTax and file your 1099 with the IRS, state, and mail recipient copies on time.

If you find errors after filing your 1099 return with the IRS, promptly correct the information and submit the corrected Form 1099 and Form 1096 to the IRS. Also, provide your recipient with an updated 1099 showing the updated details. If you need to correct any state or local tax department information, file the form with the appropriate agencies, not the IRS.

Is it necessary to file Form 1099 with the state?

Certain states require the filing of Form 1099 to report state withholding. The specific requirements for submitting Form 1099 to your state vary, depending on the state. Once you've fulfilled your state's requirements, your 1099 filing is considered complete.

Please visit the State Filing Requirements to verify your state's filing requirements.

For the 2023 tax season two states have joined the IRS Combined Federal/State Program, Pennsylvania & District of Columbia.

What are the different Form 1099 Copies?

Each Form 1099 has five different copies with their specific purpose:

Copy A

IRS copy for paper filing.

Copy 1

Filed with the State Tax Department.

Copy B

Recipient copy.

Copy 2

Recipient state copy used for state income tax reporting.

Copy C

Payer's copy for their records.

Get started with , and file your 1099 tax forms with federal/state and mail recipient copies from one place. BoomTax will never remove past years' filings, and you can continue to make corrections at any time, no matter the year. File my Now!

What are the Types of 1099 Corrections?

Suppose you have any mistakes on your previously submitted Form 1099. In that case, rectifying them, submitting an amended form to the IRS, and providing the updated forms to the recipient is essential.

Employers can address two distinct types of errors in Form 1099 corrections, Type 1 and Type 2:

Type 1

Type 1 errors involve:

  • Reporting inaccurate payment amounts
  • Utilizing incorrect codes
  • Not filing for the appropriate recipient

Type 2

Type 2 errors involve:

  • An omitted or incorrect payee TIN
  • An omitted or incorrect payee Name
  • Filing the return using an improper form

You must file Form 1096 with the corrected return unless you're filing the correction electronically.

Ready to file your 1099 correction electronically? and auto-generate Form 1096 for your records at no extra cost. With BoomTax, you can also send the corrected copies to your recipient.

Correcting Payer Information on Submitted Form 1099

To correct payer information on Form 1099, send a written statement to the IRS with the following details:

  • Payer name
  • Payer address
  • Type of error (including incorrect payer name/TIN reported)
  • Correct payer TIN
  • Tax year
  • Number of payees
  • Whether federal income tax was withheld

To the address:

Internal Revenue Service
230 Murall Drive
Kearneysville, WV 25430

Import Your Form 1099 Data

You can import your data as Excel, XML, or use files from popular payroll providers like QuickBooks, UKG, ADP, and many more.

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There is no additional fee for filing prior-year 1099 tax forms with BoomTax; you can e-file at the same affordable rate as current-year forms.

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What is the Penalty for Missing Form 1099 Deadline?

Failing to file Form 1099 by the deadline or meeting the deadline but providing incorrect recipient information can result in IRS penalties ranging from $60 to $630, depending on how late the form is submitted. The IRS has increased the penalty amounts for the 2024 filing year.

After the deadline, but within 30 days

$60 per form

After 31 days - August 1st

$120 per form

After August 1st, or not at all

$310 per form

Intentionally not filing

$630 per form

1099 penalties may be subject to the following:

  • Furnishing incorrect information on a return
  • Failure to provide the required information
  • Late filing of returns
  • Paper filing when required to file electronically (E-file 1099 if you have 10 or more information returns)

The IRS is accustomed to changing rules year-to-year, sometimes even in the middle of the current tax season! This is why having the most accurate information about the IRS requirements and deadlines for filing any Form 1099 is essential. Use reliable tax software to e-file your forms and stay updated on any changes in regulations or deadlines.

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