The Form 1099 series is used when the taxpayer has received income from sources other than a wage-paying job. There are eleven different variations to the 1099 forms, the type of income being reported will determine what form will need to be used. The IRS encourages taxpayers to file electronically, with IRS Authorized E-File Provider. ExpressTaxFilings is an IRS E-File Provider you will be able to E-File your 1099 forms and send them to your payees all in one place.
When e-filing, it will only take 4-6 business days for the IRS to process Form 1099, once accepted the returns with be sent to the provided e-mail address. The IRS requires you to keep copies of returns, or be able to reconstruct the data, for at least 3 years, 4 years for the Form 1099-C, starting from the due date of the return.
What to report when filing Form 1099?
The Form 1099 series consists of various returns used to report various types of income outside of wages, salaries and tips it can be easily e-filed through ExpressTaxFilings. The specific type of 1099 form you need to file is determined by the exact type of payments made. Generally a 1099 is only required if the payment amount is greater than $600 during the calendar year.
E-filing & Transmittal Requirements
You are required to E-file form 1099 if you have 250 or more returns to file. The 250-or-more requirement applies separately for each type of form. If you meet the requirements to E-file and fail to do so, you will receive a penalty from the IRS. You will need to obtain a Taxpayer Identification Number (TIN) to file a 1099 form. You can apply for the TIN electronically through the www.irs.gov website.
1099 Form DOs and DON’Ts
You will need to file electronically if you are filing more than 250 returns. The IRS encourages you to file Form-1099 electronically even if you are filing fewer than 250 returns. The electronic filing is not required if you apply for and receive a hardship waiver.
When paper filing, you will need to complete the form in black ink. The original (Not a Photocopy) of the entire page, Copy A, will need to be sent to the IRS along with Form 1096, even if the forms are blank or void. You will not need to enter 0 (zero) or “none” in the amount boxes if there is no dollar amount due, you will leave them blank. Also, do not use any special characters in the money amount boxes or payer name lines.
Make sure not to staple, tear, or tape any of the forms before they are mailed to the IRS. When you are sending the forms to the IRS, mail them in a flat, not folded, envelope. If you need to send multiple forms, you may send them in conveniently sized packages. Postal regulations require forms and packages to be sent by First-Class Mail.
Form 1099 Extension
You can get an automatic 30-day extension to file by completing Form “8809-Application for Extension of Time To File Information Returns.” No signature or explanation is required for the extension. However, you must file Form 8809 by the due date in order to get the 30-day extension. Under certain circumstances, a request for an extension of time may be denied. When a denial letter is received, any additional or necessary information must be resubmitted within twenty days of the date of the letter. You may request for an additional 30-day extension by submitting a second Form 8809.
Generally requests for additional time are only granted in cases of extreme hardship or catastrophic event. The IRS will send you a letter of explanation approving or denying your request for an additional extension
How do you apply for a file extension?
An extension should be filed as soon as you know that a 30-day extension of time to file is needed using the Form 8809. If you are requesting an extension for 10 or fewer filers, you can follow the instructions on Form 8809 and mail it to the address listed in the instructions on the form or you can fax it, see instructions for Form 8809 for more information. If you are requesting an extension for more than 10 filers, you must submit the extension request online through the IRS E-File system. You are also encouraged to submit requests for 10 or fewer filers using the online form as well.
Penalties for late filing form 1099
If you are required to file electronically but fail to do so, and you do not have an approved extension with Form 8809, you may be subject to a penalty of up to $100 per return for failure to file electronically unless you have previously established reasonable cause with the IRS.