For the 2019 filing season, Form 1099-MISC which reports nonemployee compensation is due on January 31st. This deadline applies to both the date by which copies must be filed with the IRS, as well as when copies must be furnished to payees.

In past years, an extension of time to file was available for taxpayers who were unable to accumulate the necessary information in time for filing. The IRS now limits extensions to specific criteria in order to be granted an extension to file Form 1099-MISC reporting non-employee compensation.

The criteria for an extension is very limited, and unfortunately, there is no “catch-all” box that can be checked to request an extension simply due to a lack of information leading up to the deadline.

In order to qualify for an extension, ONE of the following situations MUST apply to the filer:

  • Experienced a catastrophic event in a federally declared disaster area that made them unable to resume operations or made necessary records unavailable
  • Fire, casualty, or natural disaster impacted their operations
  • Death, serious illness, or unavoidable absence of the individual responsible for filing the 1099-MISC negatively affected the ability to file
  • Filer was established in 2019
  • Data on a payee statement (such as Schedule K-1, Form 1042-S, or statement of sick pay) was not received in time to prepare the 1099-MISC

If none of the above situations apply, the forms must be completed and filed by the original deadline of January 31, 2020.

The possibility of the IRS imposing fines exists if businesses fail to file Form 1099-MISC timely. A fee of $50 per statement, within 30 days past the deadline, and a fee of $110 per statement, if outside that window, are the associated penalties of non-compliance should businesses file after the deadline without having been granted extensions.

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Alan Burdge

Author Alan Burdge

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