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 Forms › E-File Form 1099 NEC Online in 2024!
E-filing Form 1099-NEC Online for 2023 Tax Season: A Comprehensive Guide
With the IRS reintroduction of Form 1099-NEC comes relearning how to file with the IRS and states. This guide will walk you through the process, providing information on the required details, available features, and how to ensure accuracy throughout the filing process.
What is Form 1099-NEC used for?
Form 1099-NEC is used to report payments of $600 or more made to nonemployees. Previously, this was reported in box 7 of Form 1099-MISC. The IRS separated nonemployee compensation reporting by reintroducing Form 1099-NEC starting from the 2020 tax year. Payments included in Form 1099-NEC are:
- Fees
- Commissions
- Prizes
- Awards
- Other forms of compensation for services
All Features Included
Purchasing any BoomTax package will give you everything you need to complete your filing.
This includes:
- Federal E-File
- State E-File
- Recipient Copy Download as PDF
- Official IRS Copy Download as PDF
- Unlimited Corrections
1099-NEC Bulk Import
Import many companies in one spreadsheet to simplify data input.
Data Validation
We validate your data against hundreds of IRS rules.
Hands Off E-File
No IRS registration or testing required.
Free Corrections
Make as many changes as needed for free.
Which Payers are required to file Form 1099-NEC?
The IRS mandates that payers (businesses or individuals) submit Form 1099-NEC under the following circumstances are met:
- Disbursed $600 or more to the payee within the year.
- Issued payments to individuals not included in your payroll.
- Compensated an individual, estate, partnership, or corporation.
- Allocated payments for services associated with your trade or business.
Payers, be sure to read our comprehensive guide on Form 1099-NEC for box-specific questions and details.
What is the deadline for filing Form 1099-NEC with the IRS?
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January 31st, 2024
Recipient Copies/Paper/E-file
Form 1099s must be distributed by the employer to the recipient on or before January 31st
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.
Visit our deadlines article to learn more about Form 1099 due dates.
Most states also have a filing deadline of January 31st, but some may vary. View our state deadlines post to learn more about the state filing deadlines.
Are there any exemptions to filing Form 1099-NEC?
Indeed, certain situations exempt you from submitting Form 1099-NEC. Filing Form 1099-NEC is not necessary under these conditions:
- Payments made to C or S corporations.
- Paid for merchandise, telegrams, telephone, freight, storage, and similar items.
- You paid tax-exempt organizations.
- Wages, any bonuses, prizes, and awards paid to employees (report these on Form W-2).
- Cost of current life insurance protection (report on Form W-2 or Form 1099-R).
- Payments made to or for homeowners from the HFA Hardest Hit Fund or similar state program (report on Form 1098-MA).
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.
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.
E-filing vs. Paper Filing
- Immediate real-time IRS updates
- File 1000s of forms easily at once
- Validates 1000s of IRS rules
- Can help with questions in real-time in chat
Paper Filing
- It can take weeks to hear a status update
- Requires unique red ink form
- Prone to human error
- No expert to help with questions
Note: IRS recommends that payers utilize the e-file option over paper filing for faster processing.
Information Required for E-filing Form 1099-NEC Online
Sections For Entering Payer Information
Complete the Payer Details section. This includes:
- Name
- Address
- Contact phone number
- Tax Identification Number (TIN)
Sections For Entering Recipient Information
Complete the Recipient Details section. This includes:
- TIN
- Name
- Street Address
- City, State, Zip
Form 1099-NEC Boxes
Follow our instructions on how to fill out Form 1099-NEC. Then, begin e-filing your Form 1099 today, and BoomTax will send real-time updates from the IRS throughout the filing process!
Takes Only 30 Seconds
BoomTax and its affiliates do not provide tax, legal, or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal, or accounting advice. You should consult your own tax, legal, and accounting advisors prior to engaging in any transaction.
