January filing deadlines for IRS Forms 1099-NEC and 1099-MISC

By Attorney Ben Rydecki

If you own a business or are self-employed, you are required to send an IRS Form 1099-NEC or a 1099-MISC to any individuals and most partnerships/LLCs that your company paid at least $600 to in 2023 for services.[1]  Other common payments that must be reported include payments of over $600 made to pay rent, interest, or your attorneys.  Royalties over $10 must also be reported.  You can find more detail regarding the types of payments to report here.

The 1099-NEC (for Non-Employee Compensation) should be used to report payments for services performed for a trade or business by people who are not treated as the company’s employees.  1099-MISC should be used to report all other transactions that require filing.

Most IRS Form 1099s must be mailed to the recipients and filed with the IRS (and often the states(s) that the company operates in) by January 31, 2024. 

Failure to file your 1099s can incur federal penalties[2] of up to $630 per missed 1099.  However, even if you miss the January 31 deadline, it is still worth getting your 1099s filed as soon as possible.  A late filed 1099 lowers the penalty to $60 per return if filed no more than 30 days late.  If you miss the 30-day late filing window, the penalty is reduced to $120 per return if filed before August 1. 

As discussed above, time is of the essence to prepare and circulate your business’ 1099s.  Please discuss the preparation of these forms with your business’ tax preparer.  If you have any questions or would like our assistance with your 1099s, please contact us at (262) 238-6996 or firm@olglawoffice.com to schedule a phone conference or meeting.

[1]  2023 General Instructions for Certain Information Returns (irs.gov)

[2] States also often penalize late filed 1099s. Please see those state’s individual departments of revenue for greater detail.