1099-MISC 2023

If you missed the filing due date for a 1099-MISC, you may owe penalties and interest on each missing information return and payee statement. Here are the current 1099 late filing penalties for 2023 MISC returns:

Interest on the penalty starts accruing from the form’s initial deadline and continues to increase until you file your form and pay what’s due.

As an example, say you forgot to report the rent your business paid for office space on a 1099-MISC. You realize your mistake on December 1, 2024, and file your payee and IRS statement the same day. You may owe $290 for each missing document — a total of $580. The IRS may also charge interest starting from the form’s due date.

State-Level Penalties

Some states may assess a penalty for missing 1099-MISC forms. If you’re behind on a state filing, check with its tax department to find out whether a fine may apply to your case.

To avoid future disconnects, consider enrolling in the Combined Federal/State Filing (CFSF) Program. It allows you to submit many federal and state informational returns simultaneously, including the 1099-MISC.

Other Legal Consequences

The IRS usually relies on its system of penalties to encourage businesses to stay on top of their informational returns. However, a pattern of non-compliance may open the door to increased scrutiny from the agency — including the potential for an audit. Staying abreast of your filing responsibilities can keep you free of IRS-imposed penalties and interest.

Impact on Payees

If you received income usually reported on a 1099-MISC, you’ll include it on your tax return—regardless of whether you received the form.

As long as you report the income and it agrees with what’s included on a late 1099-MISC, it won’t impact your tax responsibilities. Issues arise if there’s a discrepancy between the 1099 and the income you include on your tax return. Consider amending your tax return to account for any differences and pay any overdue tax.

You can submit an overdue 1099-MISC electronically through the IRS online filing platform. Paper reporting is an option if you have fewer than ten forms. If you opt to send a paper copy, make sure it goes to the correct IRS processing center based on your business location. There are three different addresses, and you’ll choose the one that applies to your state.

Share the 1099-MISC with payees, too. If a recipient didn’t already report their earnings from your business, they may need to amend their tax return.

Here’s the process:

1. Prepare the missing 1099-NEC.
2. Submit the form to the IRS and state tax departments electronically or through the mail.
3. Share a copy with your payees.

A missed 1099-MISC can happen to anyone. If you overlooked a filing, you might avoid a penalty if you can show reasonable cause. The IRS provides relief on a case-by-case basis.

Some examples of reasonable cause include:

• Experiencing IT problems that prevent access to records.
• Facing an unpreventable absence of the administrator responsible for filing.
• Encountering a natural disaster or fire disrupting operations.
• Dealing with system issues delaying timely submission.

You may qualify for a penalty reprieve if you’re normally a responsible taxpayer. Situations outside your control might boost your chances of a waiver. Being a first-time filer of the form also helps. The IRS looks at other factors, like your tax compliance history, when removing a penalty.

If you receive an IRS notice, you’ll know you owe a 1099 late filing fine. The letter lists the amount due and a toll-free number to call in the right-hand corner if you want to dispute it.

There’s no harm in contacting the IRS about an overdue form before you submit it. If you explain what happened, they may waive the penalty ahead of time.

It may be tempting to skip a 2023 1099-MISC report if you missed the due date. However, the IRS will likely catch the mistake, and that can result in a higher penalty. Interest accrues on the fine until you file the form. It may add up quickly.

A phone call to the IRS can help you settle the matter and potentially qualify for a waiver. It keeps you compliant so you can focus on things that matter—like growing your business.

How To Notify the IRS of a Late Filing

You can call the IRS business line at 800-829-4933 between 7 AM and 7 PM local time, Monday through Friday. Contacting them before you submit the return alerts the agency to be on the lookout for your form.

Alternatively, you can wait for the IRS to send you a notice concerning the late filing. Their letter will include a phone number if you decide to dispute any penalties charged.

If you have unique questions about filing a late 1099-MISC, consider speaking with a tax advisor or attorney for tailored guidance. A qualified professional can address special situations that fall outside the average taxpayer’s concerns.

File Your Overdue 1099-MISC Today

There’s no better time than now to file a late 2023 1099-MISC form. Getting on top of your filing responsibilities can help you avoid extra penalties and interest. You may even qualify for a reprieve if you ask the IRS to consider your circumstances. Start today using the Legal Templates editor. Our service allows you to edit, save, and print your form, so you’ll have it for your records.