| Help Your Tax Clients Meet the Deadline to Send Form 1099s |
The beginning of tax season is crunch time for businesses. The deadline to send 1099s to the IRS is January 31st, and it’s crucial for businesses to file these forms accurately and on time to avoid stiff penalties. As an employer, it’s your client’s responsibility to send these forms to your employees on time so they can file their taxes on time.
Knowing who should receive Form 1099 isn’t always clear, and many businesses miss deadlines because they’ve failed to collect critical information from contractors or vendors necessary for filing out their 1099s. There are also many types of Form 1099 which can cause employers confusion. Learn who needs to receive and how to send a 1099 with these simple steps.
What is Form 1099?
There are many types of Form 1099. You’ll likely encounter the following types of 1099s in your tax practice,
- Form 1099-NEC – This tax form reports non-employee payments over $600 business clients make to independent contractors, freelancers, and vendors throughout the year. Form 1099-NEC records income that isn’t reported in the wage and salary data on W-2 forms.
- Form 1099 MISC – This tax form is used to report payments that aren’t subject to self-employment tax. Examples of such payments include rent, royalties, and cash prizes.
- Form 1099-K – This tax form accounts for payments made through third-party payment apps like Venmo, Cash App, Apple Pay, and PayPal.
- Form 1099-DIV – This tax form reports dividends and distributions paid to taxpayers by banks and financial institutions.
What you’re going to need
Before you gather your client’s information to file Form 1099, it’s important to inform them of the filing deadlines for each type of Form 1099. We’ve provided these due dates in the chart below.
| Tax Form | Filing Deadline |
| Form 1099-NEC | Jan. 31 |
| Form 1099-MISC | Feb. 28 (or Feb. 29 during leap years) |
| Form 1099-K | Feb. 28 (or Feb. 29 during leap years) |
| Form 1099-DIV | Jan. 31 |
In order to make sure your business clients meet the deadline to send a Form 1099, be sure to gather critical information from them well in advance of the filing due date. You’ll need the following information:
Your client’s business name and address
Make sure you have your client’s IRS-recognized business name – not just their trade name, and an accurate mailing address.
Your client’s Federal Identification Number (EIN or FEIN)
Form 1099s will also require your client’s Employer Identification Number (EIN) or Federal Employer Identification Number (FEIN).
The recipient’s name and address
Accuracy is also critical for the recipient’s information. Be certain you have the recipient’s full name, an accurate mailing address, and their Social Security Number (SSN) or Tax Identification Number (TIN).
Box 7
While 1099s are fairly straightforward to complete, make sure you report the amount paid to the recipient of non-employee compensation in Box 7.
Who do I need to send a 1099 to?
Form 1099s are issued to report non-employment income, that is any payments made to a person or non-corporate entity who is not a W-2 employee. For example, any vendor, contractor, or freelancer with whom your client works will need to receive a Form 1099-NEC if your client has made payments to them of more than $600 during the tax year. Or if your business client made dividend payments to an investor, that investor will need to receive a Form 1099-DIV.
How to send 1099s
You can send 1099s to recipients by mail or electronically, just as you’d do when filing Form 1099s with the IRS. If you file Forms 1099s on paper, you will need to submit them with Form 1096, Annual Summary and Transmittal of U.S. Information Returns. If you prefer to file 1099s online, you can e-file them through the Information Returns Intake System or using our Workful add-on. 
Consider offering 1099 support services
While a small business may only need to file a handful of Form 1099s, larger companies may need to file dozens, if not hundreds of 1099s. Learning how to prepare and how to send 1099s can offer your tax preparation business additional opportunities for growth by appealing to business as well as individual clients. Learn more about growing your tax prep business with an array of resource guides from TaxSlayer Pro.
