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IRS Form 1099-Misc Deadline is Just Around the Corner

The deadline for issuing Form 1099-Misc to contractors reminds me of my anniversary. I know when it is every year because the date never changes, yet some how I’m always racing around the day before trying to stave off disaster. Well not this year, I told myself. The Form 1099s must be sent to contractors whom we’ve paid at least $600 in the past year by January 31, 2008. Mike and I always divide the labor on this one. He gets me all the data, and I complete the forms and send them out. He was going to get me the data weeks ago. So far I haven’t received it, and he’s out of town until Monday (which means, among other things, that he can’t edit this post). So here we go again. But I thought this would be a good time to review the 1099 rules for real estate investors:

  • Who gets a 1099: Each person to whom you paid during the past year at least $600 in services. Payments to a corporation generally are not reported on Form 1099. Certain payments to lawyers are reportable regardless of amount. You can check out the details in the IRS Instruction for Form 1099-MISC.
  • Deadline: Form 1099s must be sent out to the contractors by January 31, 2008. They are due to the IRS by February 28, 2008, unless you’re file them electronically, in which case the due date is March 31, 2008.
  • Penalties for late filing: There are a range of penalties for filing the 1099 late, generally up to $50, although it can be much higher in extreme cases.
  • Don’t forget state filing requirements: The requirements vary from state to state as to whether you are required to file a 1099, so be sure to check your state’s requirements.

How to prepare 1099s

Although you can file electronically, we never have. We buy a Form 1099 packet from Staples and prepare our own. In a typical year we issue fewer than 10, and I think this year we’ll issue fewer than 5. Staples and other office supply stores sell the forms bundled with software for data entry and printing. The process is simple and only takes a few minutes once you have all the data collected.

Now if I could only get Mike to send me the #@!% data!

{ 23 comments… add one }

  • EILEEN January 31, 2008, 4:37 pm

    It is my understanding that 1096 (which I have not received) cannot be printed online and sent. What gives? How does one get a 1096 required to send for 1099s? Guess one could file electronically… does this negate the need for a paper 1096 – this issue just goes away?

    Thanks! Up against the wire…

  • Jeff January 31, 2008, 5:32 pm

    Eileen, the 1096 is the summary transmittal right? I printed my 1099s yesterday and sent them to the independents, and then printed my 1096 and sent those along to IRS. I bought a packet at office supply store with the software, that’s all she wrote.

    My question is, I am still waiting to receive a 1099 from one of my employers. If they fail to get it to me on time, and I want to file now, what are the penalties they face for not getting me the 1099s on time?

  • Mike-TWA January 31, 2008, 6:55 pm

    @Eileen. 1096 is the summary transmittal form to send with paper 1099s for filing with the IRS. Electronic transmission negates the need for this form. But see our article today about electronic filing. Also, take a breather. Today’s deadline is to send 1099s out to recipients. The filing deadline with the IRS is Feb. 28.

    @Jeff. Your employer can incur penalties imposed by the IRS for late filing. But I am not familiar with penalties for sending 1099s late to recipients. However, if you haven’t received your 1099 by February 15, you can call the IRS for assistance. The first step here is to call your employer. If no luck by the 15th, call the IRS. The agency toll-free helpline is listed at IRS.gov

  • robin February 8, 2008, 11:13 pm

    You can order free 1099′s, 1096, etc. here:
    http://www.irs.gov/businesses/page/0,,id=23108,00.html

    it’s too late for 2007, but order now for 2008

  • Tony February 19, 2008, 10:53 pm

    I’m a contractor and it’s now close to the end of Feb but I still didn’t get my 1099 MISC from my employer. This is preventing me from filing my taxes. What can I do?

  • Mike-TWA February 20, 2008, 7:59 pm

    Tony, Check my comment about calling the IRS. But first call your employer to let them know that you intend to do so. Most employers will respond.

  • pamela March 24, 2008, 11:33 am

    what’s the point of a deadline to get contractors their 1099s if the employers don’t care… I can’t get a straight answer out of the irs either… their only concern is that the employer files their 1096s on time…

    what gives?

  • Mike-TWA March 30, 2008, 10:22 am

    Pamela,

    If calling the employer as mentioned in the comments above doesn’t work, consider writing a letter to the employer “reminding” the employer of penalties for late 1099s and copy the IRS, showing that on the letter to the employer that you have done so. Good luck.

  • pamela April 1, 2008, 7:28 pm

    funny, i did… two weeks ago..i just received the 1099 today… wow… one other agent recd hers two weeks ago… but none the less…. the irs seems to lean more towards the side of the “employer” and didn’t seem to want to give me the figures for the penalty… help????? can you find out????

  • pamela April 1, 2008, 7:29 pm

    ps… it would be helpful when writing the letter to know what amount the penalties are… oh… except the irs wouldn’t tell me…. they said as long as I had my taxes done by the 15…

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  • sudhir February 2, 2009, 9:08 pm

    what is the dead line for filing 1096?

  • al February 10, 2009, 9:31 pm

    The Deadline for an employer to send 1099s was changed to the 14th day after Jan 31, 2009. Read the IRS 1099 publication.

  • Sara March 4, 2009, 6:07 pm

    what is the possible penalty for a small business that did not issue 1099 to its cleaning service. Its a dept of labor audit.

  • IWONA March 6, 2009, 4:40 am

    MY HUSBAND HAD TAXES DONE BY HIS FRIEND IN 2004. 1096 WERE NEVER DONE OR SEND. CAN I STILL FILE IT? I HAD AUDIT AND THEY ONLY WANT A COPY OF THAT FORM??? WHAT I CAN DO??? IRS WANTS ME TO PAY FOR ALL THE INCOME THAT MY HUSBAND PAID TO OTHER SUBCONTRACTORS, AND ITS COMMING THAT I WOULD HAVE TO PAY ABOUT 40,000 IN TAXES FOR 2004. HELP HOW CAN I PROVE MY CASE WITHOUT 1096, I DO HAVE COPIES OF 1099, THAT HE SENDED OUT AND I HAVE COPIES OF CHECKS THAT EVERYBODY CASHED!!!! HELP!!!!

    • Rob March 6, 2009, 7:22 am

      IWONA, I wish I had an easy answer for you, but I don’t. My suggestion would be to contact a tax accountant experienced in handling IRS audits.

  • BILLY BOB March 17, 2009, 1:34 pm

    I done a cash job for a real estate agent building a house. I was up front that this was a cash job. The labor was about $1250.00. I received a voice mail from her on 3-17-09 asking me for my address and SSN to file a 1099 on me. What gives here? She paid me by check. Can she do this or is she to late for filing? My taxes are done.

  • ross July 7, 2009, 9:59 pm

    Billy Bob I have the same situation:( what did you find out

  • Laurie March 10, 2010, 4:16 pm

    I completed the 1099′s and 1096 transmittal….but I forgot to included one independent contractor’s 1099. How do I correct….do I have to print all the 1099′s all over agains, or can I just print the one additional one and then send an adjusted 1096.

    Please help….so I can fix

    Thank you all

  • Bob March 15, 2011, 9:43 pm

    the bank sent me a 1099c form but neglected to check the box stating that it was part of a bankruptcy, I called them and they said they issued a corrected copy but that they could not send me a copy, now what do I do ???

  • Lisa December 30, 2011, 1:37 pm

    We buy spot media for our clients, we bill the client and pay the media partners. Some media partners are LLC/LLP others state Corporation DBA an LLC and one states Corporation DBA a LLC with a Tax classification of D=Disregarded entity and Exempt payee. What the heck does that mean? Would media (advertising on radio/TV/Print) get 1099′s? Hopefully, someone stills looks at this web address.

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