Today is the due date for Form 1099-MISC! Businesses need to report miscellaneous payments by e-filing Form 1099-MISC by March 31, 2021.
For paper filers, Form 1099-MISC was due on March 1, 2021. Employers who choose to file electronically have until March 31, 2021. If your business e-files or missed the paper filing deadline, today is the last chance to file Form 1099-MISC online, avoid penalties, and stay IRS compliant.
What is Form 1099-MISC and Who Needs to File?
Form 1099-MISC allows employers to report miscellaneous payments to the IRS. Employers also need to send copies to their recipients. If your business made a payment of $600 or more during the 2020 tax year for any of the following categories, you should file Form 1099-MISC.
Form 1099-MISC reports:
- Prizes and awards
- Other income payments
- Medical and health care payments
- Payments to an attorney
- Crop insurance proceeds
- Cash paid from a notional principal contract to an individual, partnership, or estate
- Any fishing boat proceeds
- Section 409A deferrals
- Nonqualified deferred compensation
Note: Form 1099-MISC no longer supports nonemployee compensation. To report nonemployee compensation for 2020, employers need to file Form 1099-NEC. Find out how to file Form 1099-NEC for the 2020 tax year.
Form 1099-MISC Penalties
If you miss the Form 1099-MISC deadline, your business could be penalized anywhere from $50 to $250/form, depending on how late you are when you finally file. The maximum the IRS can penalize your business is $556,500 per year.
If it seems like you are intentionally ignoring your Form 1099-MISC deadline and have no intention of filing, you can be filed $550 per form increasing. There is no maximum penalty if you disregard your deadline.
Form 1099-MISC Step-by-Step E-filing
When you e file Form 1099-MISC with ExpressEfile you get error checks, instant notifications on your return’s status, and great email support. ExpressEfile also has an option to handle recipient copies for you. The recipient copy deadline has already passed, but if you forgot to send them out it’s best to do so as soon as possible.
If you are filing Form 1099-MISC on deadline day, working with an e-file provider can save your business from IRS penalties and help you meet your deadline on time. Complete Form 1099-MISC in 3 simple steps:
- Enter your information
- Review and correct any mistakes
- Transmit your return directly to the IRS
At ExpressEfile, we’re here to help. Get started now and file Form 1099-MISC easily to meet your March 31, 2021 for the 2020 tax year.
Now we are also supporting Form 941 for the 1st Quarter of 2021. You can E-File Form 941 with ExpressEfile and get instant notifications on the filing status from the IRS.