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The IRS strongly recommends that organizations and businesses file form 1099-NEC electronically (aka eFile), instead of manually printing paper filings and sending it to the IRS.
This year, IRS mandates businesses that need to report 10 or more tax returns of any type, including 1099s and W-2s are required to file it electronically.
Tax1099 caters to your tax compliance needs with ease. We cover Federal and State e-filing, and recipient copy distribution, and offer efficient features like bulk filing, internal audits, secure online tax form access, postal mailing services, seamless software integrations, and more
| Key Features | Tax1099 Platform |
|---|---|
| Filing Options | Supports electronic filing of Form 1099-NEC with both the IRS and state agencies. |
| Recipient Copy Delivery | Choose between sending Form 1099-NEC copies via postal mail or secure online access. |
| IRS Notice Management | Streamline handling of IRS notices and communications for enhanced compliance. |
| Free TIN Match | Verify Taxpayer Identification Numbers (TINs) to ensure accurate filing. |
| Supporting Services | Access, download, and print PDF copies of your forms, available 24/7 from anywhere. |
If you made payments of $600 or more to non-employee individuals or businesses for services provided in the course of your trade or business, you likely need to file 1099-NEC forms.
| Royalty payments |
The IRS enforces penalties for failure to file Form 1099-NEC and other form types in a timely manner. These penalties can be incurred even if the payer does not provide copies to recipients by the specified deadline or submits incomplete or inaccurate statements.
Charges for Each Information Return or Payee Statement
| Year Due | Up to 30 Days Late | 31 Days Late Through August 1 | After August 1 or Not Filed | Intentional Disregard |
|---|---|---|---|---|
| 2024 | $60 | $120 | $310 | $630 |
| 2023 | $50 | $110 | $290 | $580 |
| 2022 | $50 | $110 | $280 | $570 |
| 2021 | $50 | $110 | $280 | $560 |
| 2020 | $50 | $110 | $270 | $560 |
| 2019 | $50 | $100 | $270 | $540 |
| 2018 | $50 | $100 | $260 | $530 |
| 2017 | $50 | $100 | $260 | $520 |
| 2016 | $50 | $100 | $260 | $520 |
| 2011-2015 | $30 | $60 | $100 | $250 |
The penalty amounts vary, ranging from $60 per return to $270 per return. In addition, as can be seen in the table above the penalties have been going up each year for over a decade. It's important to note that these penalties are applied when a Form 1099-NEC is not filed electronically with the IRS or delivered to a recipient within the designated timeframe.
Our experts will keep you informed with IRS updates as you go through the filing procedure! So, start eFiling your Form 1099 using Tax1099 today.