1099 Extension Filing Instructions: What You Need to Know About the Process

4

Min Read

Tom Smery

The deadline to file your 1099 is coming up fast! If you have yet to submit it or need more time to file before the due date, we will help guide you through the process to request an extension. In this article, you'll learn what a 1099-extension is and why you need one to avoid a 1099 late filing penalty, as well as how to fill out the correct form so that your extension of time request can be processed without any errors.

How To  Request An Extension For Filing Forms With The IRS

You can request extensions by using Form 8809. You can send forms 8809 by mail to the IRS. After all, the IRS mailing address is printed on the forms. The IRS highly suggests that you e-file to submit Form 8809.  

It is not necessary to give a justification for the extension request. However, since you are not granted an automatic extension to file after the 1099-NEC due date, you can apply if your business meets certain hardship circumstances. You can find them on the Form 8809 online.

1099 Deadlines To Remember

Regardless of the form of 1099, the dates they need to be sent out and submitted to the IRS are the same. The 1099-NEC, 1099-MISC, and 1099-K are common examples of this. Depending on the type of 1099, there are slightly different deadlines.

IRS Deadline To Send Out Forms

The IRS requires businesses to send out 1099 forms by January 31 to give recipients enough time to file their taxes. This deadline is true for all 1099 forms. If January 31 falls on the weekend, the due date to send the forms to the recipient and IRS gets moved over to the next business day.

Reintroduced in the 2020 tax year, Form 1099-NEC is now used for non-employee compensation of $600 or more to a payee. By February 1, 2021, this document should be sent to the IRS, either on paper or electronically, and distributed to recipients.

Deadline to File Form 1099-MISC, -NEC and other 1099s

The IRS must receive Form 1099-MISC, as well as all other 1099 forms, by March 1, 2021 if filed on paper, or March 31, 2021 if filed online.

Automatic Extension for 1099 Forms

The IRS grants an automatic 30-day extension to February 28 to business owners who requests one for their 1099. Maybe you need more time to categorize tax receipts or you have a family emergency, whatever it is, if you need more time to file, you can be granted a 30 day extention.

An extension can be obtained either using the Filing Information Returns Electronically (FIRE) system to fill out Form 8809 or by physically file out and mail Form 8809. Form 1099 extension of time requests must be postmarked or mailed by February 28 or electronically filed by the due date of March 31.

Form 1099-NEC Will Not Grant Extensions Automatically

In regards to Form 1099-NEC, there is no automatic 30-day extension. The IRS will not accept the excuse "I lost my 1099, so I didn't file". You can still request an extension, but it will not be granted automatically. An extension to file is only available for those under some hardship circumstances and you can only request one extension at a time.

Backup withholding may also apply to non-employee payments if the payee has not submitted the payer with a taxpayer identifying number or if the IRS tells the payer that the Taxpayer Identification Number provided was incorrect or wrong.

Applying For Additional Extensions Of Time

If you obtain an automatic extension, you may request one additional extension of not more than 30 days by filing a second Form 8809 before the conclusion of the first extension period.

This second extension will only be allowed if the business under some specific circumstances:

  • You've experienced a devastating occurrence in a proclaimed disaster region
  • Death, significant illness, or inability to file information returns due to the absence of a key individual
  • Business operations were disrupted due to a fire or natural calamity
  • This is the company's first year
  • The required information on Schedule K-1 or Form 1042-S was not received in a timely manner

Additional information is needed to describe why you need more time to file form 1099. You must provide the required documentation to demonstrate your eligibility for the additional 30-day extension. Be sure to sign the thorough explanation and add your taxpayer identification number and company name.

Deadlines Help Uncover Fraud

The due date for form 1099 is to help the IRS detect fraudulent returns by giving them sufficient time to verify income for individual reporting. Be sure to stay on top of the filing deadline so you do not need to file for a 30-day extension. However, if you need more time, we hope this article helped you navigate through 1099 extensions.

Tom Smery
Tom Smery is a certified CPA for over a decade. In his free time, he writes articles to pass on his expert knowledge on taxes and accounting. Thomas has a wide range of deep knowledge on 1099 taxes, and finance topics. You can find him fishing when he is not preparing taxes for his clients or writing about accounting.

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